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Company Registration


Thailand Company Registration
If you are considering the prospect of establishing a Chiangmai Thailand branch of an existing company or starting a new business in chiangmai Thailand, there are numerous factors to consider and decisions to make, particularly if you wish to proceed in accordance with Thai company law.

You will need to decide what form of business entity to establish. In Thailand, businesses can be incorporated as sole proprietorships, limited and unlimited partnerships, private limited companies, public limited companies, branch offices and representative and regional offices. Although there are numerous "business consultant" services providing company registration services, it is sensible to take advice from a professional licensed lawyer [ ICO Inter Law chiangmai legal and business ].

There are numerous laws that will affect you and your company in Chiangmai Thailand (and abroad). Merely filling out forms without the knowledge of the application of the law can lead to serious complications and other problems.

Company Registration Thailand FAQs:
New Changes to Company Registration Procedures [ ICO Inter Law chiangmai legal and business ]
Q: When will the new changes for registering a company in Thailand go into effect?
The government approved changes to the Civil and Commercial Code for registering a company in Thailand on 23 February 2008. The changes will come into effect on 23 June 2008

Q: What are the significant changes of the act?
There are 3 significant changes to the act based on the following: 1) the number of persons required for starting a company, 2) the period required for filing a memorandum to register a company, and 3) authorization for company entity change from partnership to limited company.

Q: What is the minimum number of persons required for starting a company in Thailand?
Based on the new act, the minimum number of persons needed to start a business has been reduced from not less than 7 persons to not less than 3 persons.

Q: How long does it take to file a memorandum in furtherance of registering a company?
The new act allows for company promoters to file a memorandum in furtherance of registering a company in a single day on condition that all required documentation for company registration has been submitted. Previously there was a requirement of a formal notice and a seven day waiting period. As related government agencies gear towards the implementation of the new act, a period of adjustment may be expected in which government officials make the necessary changeover from the old way of doing things to the new.

Q: Is a change in company entity allowed under the new act?
The act permits a registered or limited partnership of not less than 3 persons to change its business entity to that of a limited company on the condition that all partners agree to the change and submit appropriate documentation. Once the business entity changes, the assets, debts, rights, and responsibilities transfer from a registered or limited partnership to that of a limited company.

What government restrictions are imposed on the business activities of foreigners in Thailand?
The Foreign Business Act 1999  regulates the business activities of foreigners in Thailand. The act classifies business activity into three categories and places restrictions of various degrees of severity on foreign ownership and operation of these businesses.

Can foreigners hold 100% ownership of a business in Thailand?
Foreigners can hold 100% ownership of businesses in non-restricted categories, such as exporting businesses and certain types of manufacturing businesses. Other methods to obtain 100% non-Thai control are through (1) application for an alien business license (2) Board of Investment (BOI) Promotion which may include assistance with an alien business license (3) registration through the Treaty of Amity (if you are an American). 

Are there other alternatives to a foreign majority company?
The vast majority of foreigners in Thailand register a Thai majority company. This is a company that has 51% or more of Thai shareholders.

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