Before you begin the process of setting up a company in Thailand, you need to know the requirements. You should first understand what a private limited company in Thailand is. Once you know that, you can move onto the next step – registering a company. The next step is to select the form of company you want to register. This type of company has a number of advantages, and this article will cover the requirements you’ll need to fulfill.
What is a private limited company in Thailand?
A private limited company is the basic corporate structure in Thailand. The Thai Civil and Commercial Code governs these companies. Unlike other companies, private limited companies cannot raise funds through a public stock offering. To set up a private limited company, the promoters of the company must each own at least one share of the company. There are several requirements for registering a private limited company in Thailand. Below is a brief explanation of the main steps involved.
To register a private limited company, the applicant must appoint at least two directors. Some companies may have all directors who reside outside of Thailand. Other companies must have a local director, which can help with filings with Thai government authorities. For example, if one director is a foreign national, the company will not have to pay corporate tax if the directors are Thai. However, foreign directors may be allowed to serve on the board of directors.
What are the benefits of private limited company?
There are several key benefits of setting up a private limited company. The most significant benefit is limited liability. Creditors can’t pursue payment against the company’s personal assets. They cannot pursue payment against the company’s assets if you are a shareholder or director. A private limited company is more credible than a regular corporation, which makes it easier for many entrepreneurs to establish a business. In addition, private limited companies are generally easier to raise capital from shareholders and third-party investors.
A private limited company is separate from its promoters. It owns its own legal identity. Its shareholders can’t be personally liable for any company debts. It can also borrow money and sue under its name, unlike a normal company. Moreover, its liability is limited and its shares cannot be publicly traded. The most important benefit of a private limited company is that it is more secure for business owners because of limited liability.
Requirements for setting up Thai Limited Company
When setting up a business in Thailand, you must first register the company. In Thailand, you will need to register your company with the Department of Business Development (DBD). This department is part of the Ministry of Commerce and performs duties originally assigned to the Department of Internal Trade. Without registration, your company will not have a legal entity and may be subject to additional taxation, including the Value Added Tax or Specific Business Tax.
When you register your Thai company, you must complete the following documents: application form, list of shareholders, directors’ forms signed by each of them, and a Declaration of Business Operations form. You will also need to obtain a tax identification number and VAT certificate. Once all of these documents have been completed, you must present them to the Department of Business Development, which is under the Ministry of Commerce. To do so, you must go to the Central Filing Office in Bangkok.