Thailand Company Formation |
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Thailand company formation allows international entrepreneurs to conduct business in Thailand. Despite political instability in the country, Thailand company formation is important in order to do business in the country. The following information will allow you to determine whether Thailand company formation is the optimum corporate structure to fulfill international business objectives:
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Advantages of Thailand Company Formation |
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Thailand is a founding member of the Association of Southeast Asian Nations (ASEAN), thus Thailand company formation offers virtually unrestricted access to a potential ASEAN market of 500 million people. |
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Thailand company formation generally requires that companies must be registered with enough capital to cover general operating costs, usually 25% of the total listed registered capital. According to the 2011 Doing Business Survey by the World Bank, Thailand is the world's 19th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. |
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According to DTZ's 2010 Global Occupancy Cost Report, Thailand is the second cheapest place in the Asia Pacific region in regards to occupancy costs. Thailand, more specifically Bangkok has a total occupancy cost of US$23.20 per sq ft per annum; indicating that running a business would be substantially cheaper in Thailand compared to other countries in the region. |
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Thailand is a world-renowned tourist destination, as evidenced Travel + Leisure Magazine's World Best Awards readers survey. When asked which city in the world provided the best tourist experience, the magazine’s readers voted Bangkok as the best in the world. Thailand company formation can enable entrepreneurs to capitalize on Thailand’s world-class tourist economy. |
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Thailand has signed double taxation treaties with 54 countries to support Thailand company formation. A list of the countries can be found at the Revenue Department website. |
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Thailand's Board of Investment (BoI) provides a range of incentives to encourage Thailand company formation. Continue reading to learn more about examples of Thailand company registration incentives. |
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The Treaty of Amity is a treaty between the United States of America and Thailand. It allows for US citizens, or companies, to wholly own a company in Thailand and hence operate their business in Thailand as would a Thai national. This is an attractive incentive for US citizens considering company formation in Thailand. |
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Healy Consultants will open a Thai or international corporate bank account to support Thailand company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services. |
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Disadvantages of Thailand Company Formation |
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A Thai company is required to submit annual tax returns and audited financial statements following Thailand company formation. Healy Consultants assists clients efficiently and effectively to complete this annual statutory obligation. |
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Thailand is negatively ranked as the world's 62nd freest economy in the Heritage Foundation's 2011 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. Furthermore, Thailand ranks just 38th in the Global Competitiveness Report 2011-2012 compiled by the World Economic Forum. |
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Under existing Thailand company formation law, the rate of corporation tax is 30% on net profit for Thai company and 30% on profit from business in Thailand for a foreign company. However, some Thai companies do qualify for reduced corporate tax, more information can be found on the Thai revenue department website |
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Thailand's military government has proposed changes to the country's Foreign Business Act to restrict foreign ownership of Thai Companies. Thailand is ranked 80th least corrupt country in the world, according to the 2011 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. |
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5.
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For a private limited company, a minimum of three shareholders is required. 100% foreign ownership is permitted, except for activities restricted to Thai nationals. All companies are required to keep a register of shareholders, which is available for public viewing. |
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| Contact Us | |||||||||||||||||||
For more information on Thailand company formation, contact email@healyconsultants.com or telephone us at (+65) 6735 0120. |
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