Company registration in Thailand

Thailand is bordered to the north by Myanmar and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the west by the Andaman Sea and the southern extremity of Myanmar. The main crops harvest several times a year and the tourist season “flows” from one climatic zone to another making Thailand one of the few year-round tourist centers in the world.

Many entrepreneurs start their own business in Thailand because of the rather simplified system for running it, a wide range of ideas and opportunities. For example, the tax burden in Thailand is 30% lower than in Russia. Due to the tightened working conditions of many international banks in relation to their clients the company in Thailand is used as a new tool for international trade.

Tax rates in Thailand:

  • VAT – 0% with a turnover of up to 1,8 million baht and 7% – other companies;
  • Corporate tax – 0% with a turnover of up to 300 000 baht; 15% with a turnover of up to 3 million baht and 20% – other companies;
  • Individual tax rate – progressive from 0% up to 35%;
  • Mandatory health insurance – 10% (payable 50/50 with an employee, not exceeding 1500 baht/month);
  • Tax on dividends – 10%.

Features of company registration in Bangkok:

  • 100% foreign ownership allowed;
  • A minimum of 3 shareholders and 1 director are required;
  • The Government of Thailand has not signed any agreements for the participation in Automatic Information Exchange (AEOI) and in Common Reporting Standard (CRS);
  • No information available in the public register of companies;
  • Thailand is not an offshore jurisdiction;
  • The company can be registered within 1 day;
  • Authorized capital: minimum 50,000 baht. For the purpose of bank account opening in foreign currencies recommended amount of capital is from 200,000 baht;
    Modern banking system and bank account in Thailand’s largest bank – Bangkok Bank.

Features of a bank account at Bangkok Bank:

  • Bangkok Bank is a correspondent bank for all other banks in Thailand;
  • Minimum deposit for account opening: 5000 USD or 3900 EUR;
  • The bank account opening takes 1 day after the company registration and in 3-4 days the client receives the account numbers;
  • The personal presence of the Signatory is required to sign bank forms for 1 day. We recommend planning a trip to Thailand for 3 days;
  • Online banking interface is in English;
  • For transactions over 50 000 USD it is necessary to provide a copy of the invoice;
  • “Smooth” compliance control;
  • Automatic SWIFT-confirmation of the withdrawal of funds by e-mail.

After the registration government gives you 2 months to get on the record with the Tax Department and get a Tax ID. You cannot open a bank account without ID. If you need a work permit or the turnover of the company exceeds 1.8 million baht, you will need to obtain a VAT certificate.

Local employee. To get a work permit you will need to hire at least 4 Thai nationals officially. Acquisition and full land ownership of any purpose is carried out through a Thai company, where at least 51% of the shares are owned by a Thai shareholder.

Aligorex Group will help you to start a business, choose an optimal business model, collect all necessary documents and register a company with a bank account in Thailand.

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