No matter what country you have citizenship with or what type of business you want to operate in the Kingdom of Thailand, you have to be informed as to the changeable business rules and regulations that Thailand requires of all business. We can consult with you as to what type of business entity will be most advantageous for you depending on your business plan and lead you through the process of creating your business in Thailand.
Limited Company : Foreigners Own 49%
There are many ways to form a company in Thailand and a popular way for foreigners is a Thai limited company with the foreign owner holding 49% of the company’s ownership and having two or more Thai citizens dividing the other 51% ownership. Our lawyers routinely consult with clients and find the best overall method of creating a company to maximize protection for their interests and enable them to conduct business in Thailand.
Amity Treaty Company
American Citizens can own 100% of a Thai company under the Amity Treaty
Our clients require a simple explanation of this company type that is often over complicated and misunderstood. Simply stated an Amity Treaty company is available only to American Citizens. The benefits of an Amity Treaty company are:
1)100% ownership of the company for American citizens. An American person can own a sole proprietorship but must have two people who are either American or Thai to hold two shares. Three people are required to organize the company. If you were to issue 1000 shares of common stock, 9998 shares to yourself and issued 2 shares to two other people, 1 share each, they would only own .02% of your company.
2) An Amity treaty company is allowed to operate in many areas otherwise closed to foreigners with the following exceptions: communications transportation, fiduciary functions banking including deposit functions, land ownership, exploitation of land or other natural resources, and domestic trade in indigenous agricultural products.
Thailand Foundations are used for very generous donors to create a vehicle for dispersing charity to great causes. These entities are well received by the Thailand government and our lawyers will diligently take you through the steps of creating a Thailand foundation for your generous causes.
Thai Limited Partnership
Thailand Limited Partnerships are a used often by foreigners wanting to start businesses in Thailand. The partnership divides liability where one partners has limited liability from any debts or taxes while the other partner has unlimited liability. This type of company has to be registered in Thailand and our business lawyers routinely create Thai limited partnerships.
B.O.I. Company in Thailand
The Thailand Board of Investment (BOI) is the governmental agency that promotes foreign investment into Thailand. They have created for foreigners the ability to form their own (Board of Investment Certified Thai Company,) which has some very advantageous benefits and features. With its new (One Start One Stop Investment Center) the BOI offers one location to handle the majority of your investment processes quickly.
A Board of Investment certified Thai Company allows its foreign owner to purchase and own land in the company’s name. BOI companies allow the issuing of work permits within just a few hours of forming your company and without the requirement of having four Thai employees. The Thai government also has extremely generous tax waivers for BOI companies. The BOI offers many other great benefits depending on the industry and type of company you want to form.
The paperwork and procedures for starting a new BOI certified Thai company are complex and our Lawyers are extremely experienced in forming these type companies for investors. You can consult with our staff to determine the best type of company, method of creating it and tax planning options to assure yourself the best possible advantages.
A Representative Office in Thailand is used for no income generation activities for parent companies overseas. Companies set up Representative Offices in Thailand to monitor quality of goods, promotions, research and other beneficial but non commercial activities. These companies are routinely created by our business lawyers for larger companies to help with the flow of goods and services out of Thailand.
Foreign Business License
Some industries are completely banned to foreigners doing business in Thailand. Other industries have restricted limits to foreign investors but do allow Thai companies with foreign partial ownership to conduct business in Thailand. The Foreign Business License is an opportunity for a foreigner to be able to control and conduct business in restricted industries.
The application process for a Foreign Business License is very lengthy and complicated. Once completed and approved by the Thai government it will open many doors that are usually closed to foreign investors. We have extensive experience in this process and can advise clients on the best possible direction for their business interests and obtaining their Foreign Business License.
Joint ventures are a key way investors create growth in business and the most important aspect of a joint venture is the contractual agreements between all parties. Investors require the best possible advantages in any contract and our law firm has built a long reputation on providing expert knowledge and skillful authoring of contracts that protect our client’s interests.