What type of business registrations can you opt for in Thailand?
According to the Thailand law, if you want to do a company registration in Thailand, you will have to find the right type of business organization. All the regulations that control this are included in the Civil and Commercial code. However, identifying which is the right type of business entity for you can be a very good idea. Here are the options you can focus on.
These are maybe the most popular type of company registration in Thailand. This is particularly helpful for the foreigners as they have a simpler registration process. The limited private companies need to register a Memorandum of Association as well as Articles of Association. These companies also need to have at least 3 shareholders, and foreigners can’t have more than 49% of the entire number of shares.
This entity needs to register at the Thai Commercial Registration Office. These are taxes as a juristic person, and they do need to share a financial report on a yearly basis. This company can have general partners that are liable to the financial obligations and have complete control over the company. There are also limited partners whose liability gets limited by the amount of money invested. These limited partners don’t have any management authority.
Registered ordinary partnership
The registered ordinary partnership is registered with the Commercial Registration Office too. The partnership is taxes as a juristic person and the partnership does need to file a yearly report too. On top of that, if you opt for this approach, you do need to pay corporate income taxes as well. That makes it a good option for corporation most of the time. Small businesses can find another way to do company registration in Thailand, but this can work for them sometimes as well. The income for the ROP can also be reported on the tax returns of each partner.
Unregistered ordinary partnership
The partners that are a part of this partnership will have an equal liability when it comes to debts and obligation. You won’t have to register it with the Commercial Registration Office though. As a result, the partnership will be taxed a rate that’s easily applicable to individual partners.
When you opt for these partnerships, you will note that they are organization contracts for 2 or more people that create a business venture. The losses and profits are shared proportionally, and the results get a whole lot better this way. You have legal responsibilities that get attached to the partners, but these will vary based on the options listed above.
As the name states, this is a solo business. This type of business is restricted to the foreigners that live in Thailand. But it can help a local create a new business without a lot of hassle.
One thing is certain, the company registration in Thailand process is not that harsh once you get the basic stuff done. Working with legal professionals can ease the process and make it simpler, so you may want to keep that in mind. Still, these are the business registration types you can opt for. Study them with a lot of attention and then select the one that suits your needs!