Emna and Jan - Startups
Getting Started
READ OUR BLOG AT: https://startupdiscoverybkk.wordpress.com/2017/11/05/first-blog-post/
If you intend to do business in Thailand, then starting a company is necessary, but not particularly difficult. Thailand is a capitalist country with a free market, with a flexible bureaucracy. The legal tax system for businesses and citizens is largely inspired by the United States and the countries of Europe. Most foreigners find it reasonable and easy to integrate. Creating a business in Thailand, first, asks to know how to manage a company or a business. The most important part is that the business is financially viable and that the market is clearly defined for your products or services. The registration process of the company is the “easy” part, which must follow.
Ownership Restrictions
The laws in Thailand are pretty nationalistic. In most cases, the company must be owned in “majority” by Thais, as shareholders. This means that the company ownership by foreigners cannot exceed 49%. This is by far the most important problem for a large number of foreigners.
The exceptions – the possession of a foreign majority – require a specific license (“Foreign Business License”) from the Ministry of Commerce, normally obtained through the Investment Committee (Board of Investment, BOL), on the basis of major investments of money, of a large number of Thais employed, or by technological transfers to Thailand (as in the energy sector).
The leadership of the company, decision making, are not necessarily lost by not being the “majority owner”. There are simple measures by which foreigners can completely control a business. For example, you have 40% of the shares, and the Thais have 60% of them: You are the only Manager. You are the only signatory of authority. By company laws, all decisions must be signed by the manager.
Starting Capital
To create a Private Limited in Thailand, you will need to commit to capitalize up to 2,000,000 THB (50,000 euros). 25% of this sum must be provided from the moment of creation.
You will need to be able to mobilize 12,500 euros to ensure the starting capital of your Limited company. This amount is not blocked on an account and can, therefore, be used to pay the investments and expenses of the company.
The 25% stake in your company must be deposited in your company account within 90 days after its creation.
Language Barrier
The laws, forms, and instructions are in Thai language. Everything must be transmitted to the government in Thai. To do business, it is therefore, necessary to have a professional translator if you do not master the written language. However, English is of course inescapable in the business world today and remains the second language in Thailand.
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