Do you know what it takes to get your business registered? If you’re a small business just starting out, you may not know all the rules, and you may not have the help you need to get things going. The rules for business registration in Thailand change periodically, so it’s good to keep up with them and to know what’s required for your business to be registered. Let’s take a look at the list of everything the government is currently requiring for business registration.
Three naturalized citizens at least will have to be initial shareholders, also called promoters. These three shareholders will have to be part of the company throughout its entire operation history. In order to meet the requirements to be a promoter/shareholder, these persons must be at least 21 years old and be able to act legally for the company. They would normally hold equal shares within the business, and then after the จดทะเบียนบริษัท, their shares may be transferred elsewhere.
- The application for corporate registration will need to include a memorandum of association.
- The business will also need to hold a statutory meeting before registration can take place.
- Also, the head office for the business will have to be in Thailand. To prove this component of registration, the corporate representatives will be required to produce the landlord’s Letter of Consent and the house registration number (a copy of it, at least).
- Any company applying for a business registration will also need to procure a Letter of Certification from the bank. This letter proves that there are enough funds in the personal bank account of the Thai shareholder to handle the expenses required to register the business.
- The amount required will be 2,000,000 THB if the business will be considered a foreign business operating nonrestricted. The capitalization requirement goes up to 3 million THB for any business considered restricted businesses according to the Foreign Business Act.
- Some businesses that are Thai-owned will not be required to meet this stipulation but will need to prove that they have the finances necessary to cover work permits for any foreign workers they are hiring.
- The documents will need to be signed in Thailand by all applicable shareholders and directors.
What to Know About Registering a Business
Be aware that these rules will change periodically, and it is the duty of the registering business to know what the rules are and meet the specified requirements. It’s advisable that businesses looking to register to hire an accounting service to make sure that all their paperwork is in order. The firm can also ensure that they meet all the government requirements for registration.
Without the help of accounting services, there are some common pitfalls that businesses run into during the initial registration stage. They may not have their paperwork in order on time, or they may have certain expectations for the registration process that isn’t in line with reality. They may not be properly prepared for the steps they have to go through, and they could end up slowing down the registration process and delaying the launch of their business.
All this can hurt profits and detract from the bottom line, which is why is it is often advantageous for businesses of any size to rely on accounting firms when it comes to the registration process. An experienced accounting firm can make the process go very smoothly for the business shareholders and foresee any obstacles they may have to deal with.
After the company has been registered, it is only then that the shareholders can open a company bank account. The account can be opened at any established commercial bank throughout Thailand.
Upon registering the business, the company can then go through the process of getting work permits for any foreign workers they want to bring in.
Registering the business will open a number of doors for a company and allow it to do so much more, legally speaking. It is not a process that businesses will want impeding in any way, and they may need professional help to get through it.