Company Incorporate in Thailand: What Are the Different Types of Legal Entities Operating in Thailand?
Thailand is a popular tourist destination, and this is one of the primary reasons behind its growing economy. Many foreigners are investing in Thailand today, and we at 3E Accounting Indonesia help you in completing all the formalities involved for company incorporate in Thailand.
Following are the types of business entities you can choose to get a company incorporated in Thailand.
The most common form of setting up a company in Thailand is a limited company, and you need at least three shareholders or promoters, one director, one auditor to set up a limited company in Thailand. The ownership of foreign authorities limits to 49-51% only.
Board of Investment
Giving you 100% ownership to business, the board of investment exempts you from income tax and work permits. Despite these benefits, the real struggle comes while registering a company as the entire process is not easy and lengthy.
A person sets up this type of business entity, and he is the one who enjoys both the profit and is liable for the loss of the company. The owner of the company takes all the critical decisions of the organization.
Partnership in Thailand is of three types:
- Unregistered Ordinary Partnership:
This is not a legal entity and all the partners coming together to form this type of entity are responsible or liable for all the liabilities and obligations of the company.
- Registered Ordinary Partnership
Unlike the above kind of partnership, this one should have legal authority. The partners are liable for their contributions only.
- Limited Partnership
The limited partnership is where the partners of the company are liable only to the contributions they made, and one can also register for an unlimited alliance where the partners are liable to the entire company.
Why Should You Start to Company Incorporate in Thailand?
The top reasons to invest in Thailand are:
- Attractive customer market makes this country a good marketplace for starting a new business.
- The transportation facilities by road, rail, air and sea make logistics network very strong. Thus import and export and transportation of goods can be done at ease.
- Thailand ranked as Southeast Asia’s largest manufacturer of automobiles, rubber products and hard disks.
- Low labour cost.
- The attractive tax incentive is another important government measure which attracts foreign investors.
At this time, many foreigners want to invest in the following sectors: Paper, plastic, metal products, electronic, chemical as these sectors are exempted from import duties and there is no need to pay a corporation tax for eight years. These investors can easily purchase land, and the simplified customs procedures is an added advantage of investing in the above sectors.
Why Choose 3E Accounting for Company Incorporate in Thailand?
Despite many advantages, obtaining a business license is a cumbersome process which can take up to 4 months. The taxation of Thailand is quite hard, and you will need a local expert in taxation. The low labour cost is lucrative, but it is challenging to find skilled labour due to a shortage of labour. Foreign investors may face communication problem due to the language barrier.
Our team of experts will help in completing the business application form, submission of documents, taxation, filing the tax return. Get in touch with us via email or call and our team will assist you in getting a company incorporated in Thailand.