The most common type of legal entity in Thailand is limited company. It is owned by a minimum of three shareholders and managed by at least one director. One of the biggest advantages of the Thai limited-company is that it is legally a stand-alone company under Thai law.
However, the Foreign Business Act limits that a Foreign business, which is defined to be a business with over 49% foreign ownership, certain categories of business be restricted from operation all together or will need to apply for a Foreign Business License (FBL) before you can commence operations and further licensing specific to business types.
Requirement for Thailand Company
|Proposed company name||Thai|
|Minimum share capital||THB 1,000,000|
|Minimum shareholder||3 Natural persons|
|Minimum director||1 Natural person|
Tax System in the Thailand
Sales of goods and services is subjected to Value Added Tax (VAT). The standard rate is 10%. Corporation should report for VAT every month. It is recommended to hire account professionals to complete the process to avoid late payment penalty.
Apart from the VAT, the companies are also subjected to Corporate Tax at a rate of 20%.
Work Permit and Immigration Issues
In order for your company to sponsor one non-immigrant B visa and work permit for its foreign director or employee, it should have 2,000,000 baht fully paid-up (or 3,000,000 baht fully paid-up if it is a foreign-owned company operating restricted businesses).