5 Steps: How a Singapore Company can open a Business in Thailand
Do you run a company in Singapore? Willing to open one in Thailand too? Great! You can choose to set up a Limited Partnership, Limited Company or a Representative Office. If you are to open a business in Thailand you will be usually governed by the Foreign Business Act, 1999. Therefore, while doing business in Thailand, it becomes extremely essential to know the penalties. Non-compliance could lead to 3 years prison or be paying a fine between 100,000b -1,000,000 Baht. So, you need to be extremely couscous.
According to the act, there are a few business and commercial activities that cannot be carried out by the foreigners unless a license has been obtained. However, apart from the legal boundaries, there are cultural differences that you need to consider. Well, starting a business in Thailand is not that hard provided you have your papers right. In fact, the government encourages foreign investors to do set up a company in Thailand. But yes, your company must add some value to the Thailand’s business ecosystem.
Let’s have a look at the steps to form a company in the kingdom;
Step #1 Name Reservation
Your company’s name must be reserved and it should not be close to any other company’s name. Also, you must consider the Business Development Office guidelines to know about the names that are not allowed.
Step #2 Filing Memorandum of Association
A MOA must be filed that must include your company’s name, the province wherein your company will be situated, the capital that must be registered, the names of the promoters and your business objectives.
Step #3 Convening the Statutory Meeting
Once the structure has been defined, you must convene a statutory meeting during which the incorporation articles and the bylaws will be approved. Similarly, the Board of Directors will be elected as well as the auditor will be appointed.
Step #4 Company Registration
Within 3 months of the Statutory Meeting, all the directors must submit the papers to apply for company registration in Thailand.
Step #5 Tax Registration
Businesses that are liable for income tax should obtain a tax identity card and a number from the Revenue Department within sixty days of incorporations.
Now that you know the process, you must start collecting all the important documents required.
