Also, if your company gets registered with the Board of Investment Thailand, it can serve various benefits.
So, if you're planning to set up a business in Thailand, this blog can help you.
Plan the Type of Your Business
If you're willing to establish a business in Thailand, you may need to analyze the type of your business idea. This helps you understand the procedure you may need to follow while forming your company. You can set your business plans in some of the following categories:-
Limited Company
Most foreign investors find this type to be most suitable. If you choose to have a limited company type, it means the shareholders can get access to a limited number of unpaid shares. According to Thai law, it requires the division of capital into shares.
The company's registration requires the names of at least three promoters and shareholders. They need a director, an auditor, and a registrar to form the memorandum of association.
Sole Proprietorship
Under this type, the company does not share ownership and is registered by a single individual. The owner has the full right to operate the company.
Partnership
There are three types of partnership as per the Thai Civil and Commercial Code.
Unregistered Ordinary Partnership
In this type of partnership, there is an equal distribution of obligations and liabilities among the partners. But it doesn't share any legal status as of now.
Registered Ordinary Partnership
This type requires registration with the appropriate authority. It has a legal status and legal rights, responsibilities, and liabilities among all the partners.
Limited Partnership
This form of partnership comprises two types of partners that are:-
Unlimited liability partner
Limited liability partner
Know-How of the Foreign Business Act
The next step is to understand the Foreign Business Act, established in 1999 in Thailand. This may help you know all the conditions while establishing a business in the country.
Also, refer to the list of businesses that are not allowed to undertake in Thailand.
Consider the Benefits of BOI Thailand
The establishment of the Board of Investment Thailand offers several benefits to businesses aiming to run in a country. This includes both tax and non-tax incentives.
Tax Incentives
Your business can enjoy the exemption from corporate income tax for a long time.
Reduced cost of import duties on raw materials and machinery.
Reduced cost of electricity, transportation, water supply, and installation/construction of facilities.
Reduction in the taxes on dividends assignable to shareholders.
Non-Tax Incentives
Access to a skilled workforce
You can remit your money in a foreign currency
Your business will have protection from nationalization.
Bottomline
Thailand is a region where most people are taking an interest in establishing their businesses. This helps them take part in the growing market of the country.
One who is planning to set up his/her business as a foreign investor may need to consider some important areas. This includes planning the niche of business, the foreign business act, and the benefits of BOI services.
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