Starting a business in a foreign country can be both a rewarding opportunity and a daunting task. The Thai government has made great improvement over the last few years to speed up the business registration process in Thailand. A Thai Company can now be registered in one business day after receiving a confirmation of the name reservation of the Thai limited company.
New businesses can set up in Thailand with ease. For a small new Thai business you can easily register a new Thai limited company with a minimum capitalization of 2 million baht. The Thai government requires that at least 25 percent of the starting capitalization be paid up on the date of the meeting for company registration. This starting capital can be used immediately for office rental, buying computers and other office equipment, purchasing inventory and other business expenses. As for big businesses, Thai government has the Board of Investment (BOI) program that offers many benefits to special sectors for choosing Thailand as their start up location. This can include small software developers (with just a few people) to large manufacturing operation. The incentives include tax holidays, reduce tax duties on imported machines, fast processing of work permits and visas for foreign staff, as well as tax free zones for importing raw materials which will be used and exported as a finished product (for some designated sectors).
The ownership percentage of the Thai company depends on the type of business registration you process with the Thai government. The most common type of registration is the Thai Limited Company with 2 million baht required initial capitalization. A foreigner can only hold up to 49 percent of the shares in this type of structure. Thus, the Thai partners must have 51 percent. The BOI company structure offers the ability of 100 percent ownership in certain business categories. It is recommended that you contact a Thai company incorporation lawyer to assist you in the planning of your new business in Thailand.