Things to know if foreigners want to open a company in Thailand.
If foreigners want to open a company in Thailand, you need to know the rules and regulations for setting up a company in Thailand. Wonderfulpackage has some recommendations for foreigners who want to open a company in Thailand as follows.
Foreigners can own up to 49% shares in a Thai company. If foreigners want to be a director who has the authority to sign on behalf of the company in signing various documents, they must show a deposit account in an amount balanced against the amount of registered investment paid. However, If they do not want to be the authorized director, they do not have to show any deposit account. Opening a company in Thailand is not a hassle but you should make a clear agreement between the partners about that capital.
The Thai government has categorized 3 types of restricted business activities from foreigners to do in Thailand.
- Businesses that foreigners are not allowed to perform for special reasons.
- Businesses related to national safety or security or having an impact on arts, culture, traditions, customs, and folklore handicrafts or natural resources and the environment.
- Businesses that Thai people do not have prompt operating abilities to compete with Foreigners.
If you want to start a business in Thailand, you can do it without the need for nominated shareholders while being able to take part in direct business control.
There are 6 types of businesses that need to apply for a foreign business license in Thailand.
- Foreign Representative Office is a foreign juristic person registered without holding shares of the Headquarter abroad and does not require a foreign business license. The representative office can be responsible for certain non-expenditure activities of the Foreign company and cannot generate income for the Foreign company in Thailand.
- Open Branch Office in Thailand
Branch offices in Thailand work in the same way as a limited company, with no shareholders or directors because it is not a registered company but it is a local branch of the international headquarters. It is different from the foreign representative office and regional office and they can have income from doing business or receive financial support from the head office.
- A newly forming company has foreign majority shareholders
A company registered in Thailand with a non-Thai nationality holding no more than 49% (being a Thai company can operate any business according to the law) and companies with non-Thai nationality, holding 100% or more than 50% of shares (foreign companies must apply for a foreign business license).
- Company from United State of America
A company registered in Thailand or the United States with US citizenship is a major shareholder and its directors may apply for a foreign business license and certify to undertake business in Thailand under the Treaty of Amity between Thailand and the United States.
- BOI Promoted Company
Companies registered in Thailand that are promoted from the Board of Investment of Thailand based on the nature of the business of the company may be licensed as an office that is promoted by the Office of the Board of Investment for 100% ownership of businesses in Thailand.
- Company Limited and Partnership
A foreign company limited or a partnership doing business in Thailand can conduct certain businesses when receiving a business license either directly or through investment promotion through the Board of Investment of Thailand.
Remarks: If requesting permission for foreign business does not pass or reject, the Ministry of Commerce will notify you within 15 working days and clearly stating the reason the license application was rejected. If denied, you can appeal the decision. The appeal must be filed within 30 days of receiving the refusal notice. The Minister of Commerce will process the appeal within 30 days of receiving the decision is final.