Thailand Company Registration Services
Being the second largest economy in ASEAN has definitely boosted Thailand’s economy in the right direction. More investors are now looking to this part of the region for investments and business growth potential.
Despite the challenges faced when it comes to company registration in Thailand, that still has not hindered its progress and capability of attracting more investment into the country. The challenges faced by investors in this market include poor intellectual property rights enforcement laws, complex customs requirements and foreign ownership restrictions in some sectors. Yet despite the challenges, Thailand still holds more potential than it does challenges, which is why investors are still keen on entering this market.
What Are the Benefits to Registering a Business in Thailand?
Owning and registering a company in Thailand can prove to be beneficial for the investor because of the advantages that the Thai market has to offer. Among these advantages are:
- Business losses can be carried forward for up to 5 years.
- Although subject to the approval of the Board of Investment, zero corporation tax is levied on companies who invest in a designated industry. Designated industries in this case would be for example, agriculture, agro-industry, alternative energy, automotive and electronics, ICT, fashion, entertainment, healthcare and tourism to name just a few.
- Exports in Thailand are not subjected to VAT, customs or excise duties, a huge advantage for businesses. Import duties are imposed on materials that are imported for the production of goods that are then exported and can be refunded by the Customs Department.
- Companies may also claim up a rebate of up to 200% on R&D costs, and a 200% deduction on job training expenses.
- Thailand also has an affluent growing middle class who have spending power.
- Thailand’s well-developed infrastructure is also conducive to business environments.
- Thailand is ranked as the top 20% of countries listed in the World Bank’s Ease of Doing Business report.
- Thailand’s government has pro-investment policies which encourage international investment.
- Thailand is also home to modern industrial estates and incentives are available from the Board of Investment for the investor who is looking to venture into this sector.
Thailand Company Registration – The Process
The process of registering a company in Thailand can be simplified below:
- Reserve a company name for registration with the Department of Business Development, Ministry of Commerce
- Deposit the paid-in capital in the bank
- Obtain a corporate seal from the seal maker
- Obtain approval for the memorandum of association, apply and pay to register the company as a legal entity and obtain a TIN with the Partnerships and Companies Registration Office, Department of Business Development and Ministry of Commerce
- Register for the Value Added Tax with the Revenue Department. VAT registration is mandatory for all companies when the company revenue hits a threshold of THB 1.8 million.
Are you an investor that is keen to dive into the Thailand market? Our professional services and expertise can help you reach your business goals. Contact us for more information today.