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Posts Tagged ‘company in Thailand’

28th June 2013

Limited Companies in the Kingdom of Thailand

Thai Limited Companies are somewhat similar to limited liability companies in jurisdictions such as the United States, the United Kingdom, or the European Union. However, there are certain formalities which must be adhered to in order to be certain that a Thai company is properly registered. First, a name for the company must be reserved and approved by the Thai Ministry of Commerce and then three shareholders must be utilized in order to meet the requirements for Thai company registration. Meanwhile, depending upon the type of business or the presence of possible future foreign employees certain capital requirements must be met (those wishing to register a Thai Limited Company are encouraged to ascertain the exact amount of capital necessary for a certain type of business before taking steps toward registration). Foreign nationals wishing to register a company in Thailand should note that some types of business are restricted under the provisions of the Foreign Business Act. It should be noted that usage of Thai nominee shareholders to hold shares of a Thai limited company on a foreign national’s behalf solely for the purpose of avoiding conflict with the provisions of the Foreign Business Act is strictly prohibited. American Citizens wishing to register a Thai company or American Companies wishing to set-up corporate offices in Thailand may be eligible to receive certification under the provisions of the US-Thai Treaty of Amity and therefore be in compliance with the Foreign Business Act and other applicable Thai law as companies with Treaty of Amity certification are accorded “National Treatment”.

An issue that may be of interest to those weighing the option of registering a company in Thailand: the corporate tax rate  for small companies making over one million baht per year has been reduced from 23% to 20% as of 2013, according to the official wesite of the Revenue Department in Thailand.

Sole Proprietorships in the Kingdom of Thailand

A sole proprietorship is defined as a business enterprise in which one natural person is the owner. It should be noted that sole proprietorships, unlike Thai limited companies or Thai limited partnerships, provide no limited liability to the owner and therefore the owner’s liability with respect to those conducting business with the sole proprietorship is unlimited.  There are some possible tax benefits arising from operating a sole proprietorship since the sole proprietor may be taxed progressively in much the same way as a natural person. In certain cases, a sole proprietor could opt to be taxed based upon gross receipts, minus a standardized deduction. However, those interested in this type of structure are well advised to contact professionals in order to ascertain further information about whether this type of structure can be utilized for one’s proposed business and the possible tax liabilities of such a proposition.

It should be noted that a sole proprietorship may not be feasible for most foreign nationals wishing to conduct business in Thailand pursuant to the provisions of the Foreign Business Act. It may be possible to obtain a foreign business license for a sole proprietorship in Thailand and thereby maintain compliance with the Foreign Business Act, but such licenses are examined on a case by case basis based upon the type of activity the sole proprietor wishes to conduct. For American Citizens it may be possible to obtain certification for a Thai sole proprietorship pursuant to the provisions of the US-Thai Treaty of Amity.

For related information please see: Thailand Company.



 

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30th April 2011

Over the years this blogger has seen large numbers of tourists flock to the Kingdom of Thailand as well as the neighboring nations of Laos, the Union of Myanmar (referred to by some as Burma), Malaysia, and the Kingdom of Cambodia. At the same time, this blogger has also witnessed the metamorphosis of some of these tourists into entrepreneurs by remaining in some of these countries (as well as other jurisdictions in Greater Asia such as Indonesia, Vietnam, China, Taiwan, Singapore, Hong Kong, South Korea, Nepal, Macau, India, and Sri Lanka; to name only a few) in a business context for many years and; for some, even decades or a whole lifetime. Whatever the circumstances of those Americans Resident Abroad remaining in the region of economies increasingly being labeled by both the mainstream and alternative media outlets by their affiliation with the Association of Southeast Asian Nations (ASEAN) one thing is clear: the economies of Asia are set to expand at an incredible rate by relative historical comparison. Therefore, it stands to reason that there are likely to be more Americans doing business in these jurisdictions. This state of affairs is occurring at a time when the potential of the internet and the World Wide Web first noted little more than a decade ago is beginning to become fully realized by businesses large and small. As e-commerce becomes an evermore ubiquitous facet of virtually every enterprise’s business strategy it is becoming more clear that many business functions are increasingly being performed by businesses of all sizes online and, in some cases, these businesses are even being maintained from an entrepreneur’s home.

This phenomenon is interesting for this blogger to note from the perspective of an American who is resident in Bangkok, Thailand as the Thai shop-house business model of maintaining a residence and business premises within close proximity has lead to a thriving small business community in the vast metropolis that is Greater Bangkok. This thriving business community, coupled with many of the other positive factors associated with doing business in Thailand, has lead to a vibrant economy that remains conducive to further foreign investment by entrepreneurs and businesses seeking to derive economic benefits both in Thailand and throughout the Asian markets. Of possible importance to Americans resident abroad or those thinking of residing abroad are the issues noted above as well as those associated with ownership of Thai property or Thai real estate especially in the form of a Thai Condominium.

In Thailand, as well as throughout many jurisdictions in Asia, there are restrictions placed upon foreign ownership of real estate. Although there are provisions allowing for foreign ownership of Thai property in many cases it is difficult, if not impossible, for a foreign national to secure freehold title (referred to as Chanote title in Thailand) in Thai real property such as land. However, it may be possible for a foreign national in Thailand, such as an American Citizen, to conveniently secure freehold title to a Thai Condo if the provisions of various laws and regulations on this issue, such as the Thai Condominium Act, are adhered to. Meanwhile, a foreign national who owns a Condo in Thailand may be qualified to receive a Foreign House Registration Booklet (referred to as a Tabien Baan for Thais or a Foreign Tabien Baan, or Yellow Tabien Baan for foreign nationals). Taking the aforementioned factors into consideration, in conjunction with the fact that for American Citizens and American Companies in Thailand there may be benefits pursuant to the provisions of various legal instruments such as the US-Thai Treaty of Amity which may provide the privilege of virtually 100% ownership of a Company in Thailand with “National Treatment” for certain business undertakings, one is left with little doubt that there are tangible legal benefits which could be accrued to the favor of Americans resident in Thailand conducting business in the ASEAN region as well as the regions of Greater Asia. Therefore,  investing in what this blogger would refer to as a “Thai Pad” (which non-literally alludes to the IPad-like gadgets allowing for increasingly easy real time access to the internet as well as the exponentially beneficial combination of privileges accruing to owners of Thai property registered on a Yellow Tabien Baan in conjunction with the advantages which may be had for Americans resident abroad utilizing a Thai company certified under the US-Thai Amity Treaty) could prove to have been prudent by future analysts in both tangible as well as intangible terms.

For related information please see: US Company Registration.

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13th April 2011

Those who have been reading this blog with any degree of regularity may have noticed that the economies, polities, and geopolitics of the world are in something of a state flux. This is not to say that this is either a positive or negative thing as such events occur from time to time. Therefore, astute followers of such events must be careful about making rigid predictions about how such matters will play out in the future. That being stated, it has recently come to this blogger’s attention that representatives from the so-called BRICS countries (an acronym denoting Brazil, Russia, India, China, and, now apparently, South Africa) are  having a summit. To quote directly from a concisely written article by, On Wednesday April 13, 2011, 5:37 am EDT as posted on Yahoo.com:

SANYA, China (AP) — The leaders of the world’s largest emerging economies gather this week in southern China for what could be a watershed moment in their quest for a bigger say in the global financial architecture.

Thursday’s summit comes at a crucial moment for the expanded five-member bloc known as the BRICS, which groups Brazil, Russia, India, China, and, for the first time, South Africa.

Chinese President Hu Jintao, Brazilian President Dilma Rousseff, Russian President Dmitry Medvedev, Indian Prime Minister Manmohan Singh and South African President Jacob Zuma will attend.

With the G-20 group of major economies seeking to remake parts of the global financial architecture, it’s time for the BRICS to test whether they can overcome internal differences and act as a bloc pursuing common interests.

The ramifications of this meeting could prove historic as the countries noted above, along with those that comprise the Association of Southeast Asian Nations (ASEAN), appear on track to become increasingly economically dynamic in the forthcoming years.     While reading this article, this blogger was especially impressed by this writer’s insightful analysis of the characteristics of the BRICS countries. To continue quoting directly from the aforementioned article:

The five countries are loosely joined by their common status as major fast-growing economies that have been traditionally underrepresented in world economic bodies, such as the International Monetary Fund and the World Bank.

All broadly support free trade and oppose protectionism, although China in particular has been accused of erecting barriers to foreign competition. In foreign affairs, they tend toward nonintervention and oppose the use of force: Of the five, only South Africa voted in favor of the Libyan no-fly zone.

At the time of this writing, the summit noted above would appear to be geared mainly toward economic matters or matters pertaining to the economic realm, but how increasing ties among these nations could impact affairs playing out in the international political arena remains to be seen.

On a related note, Stock Exchanges in some of the Nations which compose the Association of Southeast Asian Nations (ASEAN), including Thailand, have recently announced collaborations apparently referred to as ASEAN Brand Identity, an ASEAN Exchanges website, and ASEAN Stars. In following up on that story it would appear that the ASEAN Exchanges website is now live, to quote directly from the website AsiaToday.com:

Launched today was the ASEAN Exchanges website (www.aseanexchanges.org) that will feature the ASEAN Stars and other ASEAN centric products and initiatives giving investors an integrated single-window view into the ASEAN capital market; a market that has a combined market capitalisation of approximately USD1.8 trillion and participation of more than 3,000 companies. Some of these companies are the largest and most dynamic companies in the world including leaders in finance and banking, telecommunications, commodities, automotive manufacturing and other industrial sectors.

The administration of this blog highly recommends that readers click upon the hyperlinks above to learn more details about these issues and the various exchanges within the ASEAN region as the whole Southeast Asia area is quickly becoming a vibrant economic force both on a regional and global level.

Meanwhile, it should be noted that the nation of Laos has recently brought a Lao stock exchange online while Cambodia appears poised to take the same steps soon. Even the developing Union of Myanmar (referred to by some as Burma) has signaled interest in the opening of a Myanmar stock exchange. Whether such a development comes to pass remains to be seen. What is clear is that economic relationships are becoming increasingly stratified as economically dictated by the interests of the players in each of the markets of the world. Those interested in such matters are highly encouraged to conduct their own research and come to their own informed conclusions.

For related information please see: US Company Registration or Company in Thailand.

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1st April 2009

Thailand Company Registration

Posted by : admin

Thailand is a wonderful place to live and work. Each year many tourists turned entrepreneurs try their luck at setting up a small business in Thailand. Some Thai businesses succeed fabulously while other Thai companies take a while to get off the ground. Then there is the case of the Thai company that fails to survive past the first year. One of the biggest problems in getting a Thai venture going is taking care of the legalities.


Every year, many businessmen try to earn a living as a small business owner in Thailand. The ones who fail often take a “let’s wing it,” attitude towards Thai law. They will often fail to incorporate a duly formalized Thai company. In another effort to cut corners in a legal sense is the propensity of some small business owners of working in their business without a Thai work permit. This is a major problem because the authorities at the Thai Ministry of Labour and Royal Thai Immigration frown upon this practice. Under provisions of the Thai Immigration Act, if a non-Thai is in violation of his visa status or is caught working in Thailand without a proper work permit then the consequences could be dire. Foreigners who engage in this practice are often fined, deported, and even jailed for violated the laws of the Kingdom of Thailand.

There are many different types of Thai corporate structures. One could set up a:  Thai limited company, Thai Limited Partnership, a Regional Operating Headquarters, as well as many other types of structures, but limited liability may not be conferred on some entities. An option for Americans wishing to do business in Thailand is seeking certification under the US-Thai Treaty of Amity and owning and operating a Treaty of Amity Company under its provisions. Some people even utilize a Thai corporate structure in order to control Thai Real Estate that they would otherwise not be allowed to own under Thailand property law.

A competent lawyer in Bangkok can assist in both incorporating a Thai company and obtaining a proper Thai work permit and long term Thai business visa in order to remain in Thailand and run a business. It is imperative to make sure the regulations of Thailand are carried out to the letter and failure to do so could not only endanger ones business, but also lead to possible government penalties.

Note: Nothin in this article should be used as a substittute for advice from a competent licensed attorney in the jurisdiction in which one wishes to do business.

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