Global Link Asia Consulting Pte Ltd

Support to set up company in Thailand

GLAC-icon-1 Gateway to Asia

GLAC-icon-1 Hub of ASEAN

GLAC-icon-1 Social and political stability

GLAC-icon-1 Growing economy
Economically, this country of 65.12 million people is characterized by steady growth, strong exports and a vibrant domestic consumer market. 

GLAC-icon-1 World-class infrastructure

GLAC-icon-1 FDI policies

GLAC-icon-1 Government support and incentives

Quick view

Location of Jurisdiction

Thai Land

Total Population:

65.12 Million (2014)

Official Language

Thai

Government

 Constitutional monarchy

Currency

Baht (THB)

Language Spoken

Thai, English (secondary language of the elite), ethnic and regional dialects

The size of workforce

38,71million(June 2015) with the majority under 35 years old

Minimum wage

300baht per day

The literacy rate

quite high

Minimum Number of Directors

No required number of directors, at least 1 can and this can be a foreigner director. The director of the company MUST be presented in Thailand as the proof of arrival visa stamp is required by the officer.

GLAC-icon-tip2 Foreign companies may carry out certain business in Thailand through a branch office. There is no special requirement for foreign companies to register their branches in order to do business in Thailand. However, there are some features need taking into consideration when setting up branch in Thailand:

GLAC-icon-cubic Branch offices are required to maintain accounts only relating to the branch in Thailand.

GLAC-icon-cubic Having a branch office in Thailand, the foreign corporation could be exposed to civil, criminal and tax liability if the branch office violates any law in Thailand.

GLAC-icon-cubic The foreign head office must appoint at least one branch office manager to be in charge of operations in Thailand.

GLAC-icon-cubic If business activities of Branch office fall within the scope of one or more laws or regulations that require special registration (e.g., VAT registration, taxpayer identification card, Commercial Registration Certificate, Foreign Business License, etc.), either before or after the commencement of activities. Therefore, foreign business establishment must follow generally accepted procedures.

GLAC-icon-cubic It should be borne in mind that the branch is part of the parent company and therefore the parent retains legal liability for contracts, and for tortious acts done. For tax purposes, a branch is subject to Thai corporate income tax at the regular20%rate on income derived from its business operations in Thailand. It is important to clarify beforehand what constitutes income that is subject to Thai tax because the Revenue Department may consider revenue directly earned by the foreign head office from sources within Thailand to be subject to Thai tax. Therefore, for tax purposes, a branch office is required to apply for a taxpayer identification card and VAT certificate (if applicable) and to file annual corporate income tax returns with the Revenue Department.

GLAC-icon-cubic A branch office of a foreign entity cannot carry out any reserved business without a Foreign Business License. It must apply for a Foreign Business License with the MOC first, and can operate in a reserved business only after the License has been issued. If the desired business is unique, does not compete with Thai businesses, or involves dealings among members of an affiliated company, the chance of approval is more probable. Conditions, such as minimum capital, transfer of technology and reporting requirements, may be attached to Foreign Business License. The minimum investment capital must be greater than 25% of the estimated average annual operating expenses of the operation calculated over 3 years, but not less than 3 million baht.

 

 

 

GLAC-icon-tip2 A Branch Office that is permitted to operate the business must comply with the following conditions: 

GLAC-icon-number1.1aThere must be the minimum capital to be remitted to Thailand for the commencement of business operation as stipulated by law. Details of remitting the minimum capital are as follows:

(1) First 25% of minimum investment within first 3 months;
(2) Another 25% of minimum investment within first year;
(3) Another 25% of minimum investment within second year; and
(4) Last 25% of minimum investment within third year.

GLAC-icon-number2a The total of loans utilized in the permitted business operation must not exceed 7 times the inward remitted funds for the permitted business operation;  (Loans mean the total liabilities of the business, notwithstanding the liabilities incurred by any form of transaction but excluding trade liabilities occurred from the ordinary course of business, such as, trade creditors, accrued expenses.)

GLAC-icon-number3a At least one person of the responsible persons for operating the business in Thailand must have a domicile in Thailand; Domicile means the contactable residence in Thailand which can be the place of business, excluding temporary residence such as hotels.

GLAC-icon-number4aThe document or evidence relating to the permitted business operation must be submitted when the official sent the summons or inquiry.

GLAC-icon-number1.5a There must be the preparation of account and financial statements to be submitted to the Department of Business Development.

Source: http://www.boi.go.th/ (Thailand Board of Investment)

Global Link Asia Consulting Pte Ltd will support you in:

GLAC-icon-tag1 Setting up branch office in Thailand, making chops, preparing Certificate of Incorporation,...

GLAC-icon-tag1 Submitting fee to Thailand Government. Application fee (non-refundable) for the Government is 2,000 baht. If the application is approved, the government fee will be set at the rate of 5 baht for every 1,000 baht or fraction thereof of the registered capital of the parent company, with a minimum of 20,000 baht and a maximum of 250,000 baht. A fraction of 1,000 baht in capital is regarded as 1,000 baht.

GLAC-icon-tag1 Providing registered addres in Thailand (for 1 year)

GLAC-icon-tag1 Providing office address in Thailand  (for 1 year)

GLAC-icon-tag1 Opening bank account in Thailand. Bank chosen shall belong to top 10 reputable local banks in Thailand. 

GLAC-icon-tag1 Building and designing website

***Should you require further information regarding incorporation service, please do  not hesitate to give us a call.

 

 

 

The Representative Office must have all 3 characteristics as follows:

GLAC-icon-cubic Be the juristic person established in accordance with the foreign law and established an office in Thailand in order to operate the service business to the head office or the affiliated company or the group company in foreign country only;

GLAC-icon-cubic Renders services to the head office, affiliated company or group company without receiving income from service, except for funds to cover the expenses of the Representative Office that are received from the head office;

GLAC-icon-cubic The Representative Office has no authority to receive purchase orders or to offer for sale or to negotiate on business with any person or juristic person.

GLAC-icon-tip2 In operation of business as the Representative Office, the scope of service is permitted to be rendered in any or all of the following 5 categories, depending upon the objectives and business characteristics of the Representative Office:

GLAC-icon-cubic Finding sources of goods or services in Thailand for the head office.
GLAC-icon-cubic Checking and controlling the quantity of goods purchased in Thailand by the head office.
GLAC-icon-cubic Providing advice and assistance concerning goods of the head office sold to agents or consumers in Thailand.
GLAC-icon-cubic Disseminating information concerning new goods or services of the head office.
GLAC-icon-cubic Reporting on business developments in Thailand to the head office

*** If the representative office engages in other activities for which permission is not granted, such as buying or selling goods on behalf of the head office, it will be regarded as doing business in Thailand and may be subject to Thai taxation on all income received from Thailand. 

*** Any such business or income-earning activities could amount to a violation of the conditions of the license to establish and operate a representative office, which in turn could result in revocation of that license.

Source: http://www.boi.go.th/ (Thailand Board of Investment)

GLAC-icon-tip2 A Representative Office that is permitted to operate the business must comply with the following conditions:

GLAC-icon-number1.1a There must be the minimum capital to be remitted to Thailand for the commencement of business operation as stipulated by law. Details of remitting the minimum capital are as following:

(1) First 25% of minimum investment within first 3 months;
(2) Another 25% of minimum investment within first year;
(3) Another 25% of minimum investment within the second year; and
(4) Last 25% of minimum investment within the third year.

GLAC-icon-number2a At least one person of the responsible persons for operating the business in Thailand must have a domicile in Thailand;

GLAC-icon-number3a The document or evidence relating to the permitted business operation must be submitted when the official sent the summons or inquiry.

GLAC-icon-number4a  All representative offices are still required to obtain a Corporate Tax Identification number and submit income tax returns and audited financial statements to the Revenue Department even though they are not subject to taxation in Thailand. They are also required to submit the same to the Department of Business Development.

Source: http://www.boi.go.th/ (Thailand Board of Investment)


Global Link Asia Consulting Pte Ltd will support you in:

GLAC-icon-cubic Setting up branch office in Thailand, preparing Certificate of Incorporation,...

GLAC-icon-cubic Submitting fee to Thailand Government. Application fee (non-refundable) for the Government

GLAC-icon-cubic Providing registered addres in Thailand (for 1 year)

GLAC-icon-cubic Assisting in renting an office in Thailand  (for 1 year)

GLAC-icon-cubic Opening bank account in Thailand. Bank chosen shall belong to top 10 reputable local banks in Thailand. 

GLAC-icon-cubic Building and designing website

***Should you require further information regarding incorporation service, please do  not hesitate to give us a call.


GLAC-icon-1 This is a kind of company which is formed with a capital divided into equal shares, the liability of the shareholders being limited to the amount unpaid on the shares respectively held by them. There are 2 types: Public limited and Private limited.

GLAC-icon-1 A private company, mostly the foreigner or foreign company can hold maximum49%and the other 51% will be held by Thai, to follow this regulation you should to find Thai shareholder for start business.

GLAC-icon-1 Case of ordinary company in Thailand is not require for minimum capital, it only requires a par value at least Baht 5 per share and 3 shares minimum (that's mean you can start with capital of Baht 15), but its investment should have concern on other objectives also such as: work permit...

GLAC-icon-1 Generally, the rate of income tax for juristic companies and partnerships is20% of net profits. Reduced rates at the progressive rates of 0%, 15% to 20% are granted to small and medium-sized enterprises (SMEs), and reduced rates at the flat rates of 20% are granted to companies listed on the Stock Exchange of Thailand, and companies listed on the Market for Alternative Investment (MAI).

 

Global Link Asia Consulting Pte Ltd will support you in:

GLAC-icon-1 Setting up a company in Thailand, making chops, preparing Certificate of Incorporation,...

GLAC-icon-1 Submitting fee to Thailand Government. 

GLAC-icon-1 Providing registered addres in Thailand (for 1 year)

GLAC-icon-1 Opening bank account in Thailand. Bank chosen shall belong to top 10 reputable local banks in Thailand. 

GLAC-icon-1 Building and designing website

GLAC-icon-1 Tax and accounting services 

GLAC-icon-1 Human Resources services and work permit application services

***Should you require further information regarding incorporation in Thailand, do not hesitate to give us a call.

Incorporate now

Singapore Office
171 Chin Swee Road, #02 CES Center, Singapore 169877
VietNam Office
151 Dao Duy Anh st., Phu Nhuan dist., Ho Chi Minh city, Viet Nam
Phone
Singapore:(+65) 3163 4102 / Vietnam:(+84 ) 938531588
(+65) 8355 1210   (+65) 8355 1210
Email
info@globallinkconsulting.sg

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