There are three steps to Set Up a Thai Limited. In the first step, you must obtain a letter from your legal representative that entitles you to operate in Thailand. The letter will tell you exactly what you need to do to open your company. The next step is to fill out the application form and provide the necessary documents. These documents include the Memorandum of Association, Articles of Association, Share certificate, and Minimum number of promoters. You will need to wait for two to three business days before your application is approved. After you have filled out the form, your lawyer will take the application to the Department of Business Development.
Articles of Association
The articles of association for Thai Limited are documents that govern how a company can do business. It is necessary to create a company for this purpose. There are many steps involved in forming a company, including choosing a name, defining its purpose, and registering the business in Thailand. You can trademark a name, but this is a separate process. The next step is to decide how the company will structure its future. The articles of association list the directors and their personal information. You must provide a business address, including the directors' contact numbers. If you decide to change these details, it will require the approval of the directors.
The purpose of the articles of association is to define the company. It is also necessary to identify the members and their duties. Once the articles of association are ready, they should be filed with the Registrar of Companies. There are five PDF documents included in the attached zip file. The purpose of the articles of association is to set forth the company's purpose and its goals. There are many important steps involved, and the company must adhere to the laws and regulations of Thailand to be successful.
Memorandum of Association
The Memorandum of Association for a Thai limited company is a legal document defining the basic rules for a company. As with any other legal document, the Memorandum of Association must state the name of the business, registered capital and promoters. Listed in the Memorandum are the names, occupations and signatures of the promoters. If a foreign person is the promoter, he or she must state this information. The Memorandum of Association must be signed by all the promoters, two original copies, and witnesses.
A Thai company can issue ordinary shares or preferred shares. Ordinary shares are essentially the same as common shares. Preferred shares, on the other hand, have special rights that are prescribed in the Articles of Association and cannot be changed. Thai shareholders generally hold preferred shares with limited privileges, such as less voting rights and the right to the asset surplus. In contrast, foreign shareholders are typically offered ordinary shares with more privileges.
If you wish to incorporate a Thai Limited company, you will first need to secure share certificates for all of your shareholders. Share certificates must be issued to each shareholder and registered at the Business Registration Department. However, share certificates are not issued to everyone who owns shares, only those who have been officially registered as owners. To obtain a share certificate, contact a lawyer in Thailand. Thai companies must issue share certificates, which are legally binding documents that serve as proof of ownership. These documents must be signed by the company's director and be stamped with the company's seal.
If you plan to hold your shares in Thailand, you must also get a foreign shareholder's bank letter covering the value of the shared shares. For example, if the Thai shareholder holds 51% of the shares, you would need to obtain a bank letter that is worth two million Thai Baht. This bank letter would also be required if you wish to set up a company in Thailand. In addition, it will help you with your tax returns, as you must present them at the time of registration.
Minimum number of promoters required
To form a Thai limited company, at least three people must be the promoters. These people must own shares of at least five baht each, and their liability is limited to the par value of the shares. Shares are not transferable until two years after the company is registered. At least half of the promoters must be Thai nationals. The company must be registered in Thailand and the shares must have a face value of five Baht.
The promoters of a Thai limited company must sign a memorandum of association with the Ministry of Commerce. All promoters must be individuals, and they must be present when signing documentation during the registration process. A private limited company needs at least three promoters and three shareholders, and their names must be publicly available. Depending on the type of company, the promoters can transfer shares to other shareholders and third parties.
Cost of registration
There are various costs involved in forming a Thai limited company, but the overall cost varies from company to company. The steps and minimum share capital required to incorporate a company differ. Tax identification is free, but the government will charge for registering the company for VAT. Depending on the capital, the total cost of registering a Thai limited company can range from 24,000 THB to 31,000 THB.
Registration of a limited company in Thailand requires a minimum capital of THB 2 million, but foreign investors can lower this amount to as little as one million Baht if they have a Thai spouse. While the minimum capital is 2 million Baht, a foreign business license requires a minimum of THB 3 million. The government requires foreign business licenses to have a minimum capital of THB 3 million per business activity.