Any entrepreneur has to go through some procedures and legal hurdles while launching a new firm along with the set up costs and other investments. This article gives you some relevant information if you plan to start a business venture in Thailand.
Permission for using the company name
The first step to be followed for establishing a business is that you need to decide on the company’s name and get it approved by the Department of Business Development in Thailand. You can either reserve the name with the website of the Department or can apply in person at the Registrar of the same.
Paid-in capital to be deposited in the bank
Once the company name is approved, the next step will be to hold a statutory meeting. The shareholders need to pay at least 25 percent of the company’s registered capital in the meeting to start the business successfully.
Corporate seal
Thai law does not require you to have a corporate seal except in case of affixation on the company’s share certificates. However, Thai companies generally affix the corporate seal to important documents.
Establishing the company as a legal entity
The most important part of the legal procedure is to establish your company as a legal entity by registering the company with a memorandum of association. The application for registration should consist of five parts. Firstly, the company name should be written in Thai as well as in another foreign language. Secondly, the nature of business should be mentioned. Thirdly, there should be a mention of the capital to be registered as well. Fourthly, the number and par value of the shares has to given in the registration. Fifthly, the document should have the addresses, names, and ages of all the promoters along with the signatures of each promoters and the share subscribed by them.
Registration with the Revenue Department
According to the Thai business laws, within two months of establishing the company as a legal entity, your company needs to be registered with the Revenue Department for obtaining a taxpayer identification card. You will receive the same taxpayer number on both the identification card and VAT certificate and these two documents are likely to reach you around the same time after application. The VAT returns need to be filed by the 15th of every month irrespective of the profit that you may earn in the previous month. The VAT registration is required to be done preferably in person, and the procedure takes two to three days.
Registration for employees’ compensation and social security
The entrepreneur must register the employees in person with the Social Security Office, Ministry of Labor. This procedure is necessary for ensuring the social security and compensation of the workers.
Submission of company’s work regulations to the Labor Protection Office
You are required to submit the company’s work regulations regularly to the Office of Labor Protection and Welfare. The work regulations are reviewed by the office and suggestions are recommended if required. An employer having ten or more employees is required to write the rules in Thai and in compliance with the amendments of the Labor Protection Act B.E 2541.
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