When you think of a place that you want to put your investment in, Thailand is a strategic location that is equally famous with the other popular countries in the world. Its fast economic growt hand state-of-the-art facilities make Thailand the place to consider by entrepreneurs.
Doing a legitimate business and making a company formation in Thailand is fast and easy as compared to other countries. Thailand is a suitable place to do business because of its flexibility. The legal system concerning tax matters and company requirements is mostly derived from the United States as well as other European countries such as France and Switzerland. Most expats find it reasonably fair and easy to transact business with.
A limited company formation in Thailand is a company whose capital is equally divided into shares and the shareholder’s liability is limited to the unpaid shares being held.
Setting up a limited company:
- To establish a limited company, there must be at least 3 signatories in the memorandum to be registered with the BOI. When the number of shares is received, the director of the company must register the company in 3 months’ time from the meeting date to set up the company.
- After registration of the memorandum, the shares must be reserved. After which, the promoters must hold a statutory meeting or a general meeting of all subscribers.
- Among the agenda of the meeting are the formulation of company regulations, ratification of contracts, setting a fixed amount to be paid to the promoters, setting the number of preferred shares and ordinary shares, and the appointment of the auditors and directors of the company.
- Business turn-over to the directors.
- The directors shall cause the promoters as well as the subscribers to pay for the shares of not less than 25% of the value of the shares.
- Upon completion of the collection of the payment of shares, the director requests for the company registration of the establishment and submits it to the registrar.
- The company can immediately start its transactions on the same day of its registration.
In conclusion, it is essential for every entrepreneur to be familiar and aware of the requirements needed in setting up a company in Thailand. Being prepared with all the required documents will expedite the registration process that will be beneficial to the investors being able to immediately start its business operations.