How To Open Software Company in Thailand?
Apart from being the second largest economy in Asia, Thailand and its economy are growing rapidly. The economy consists of different sectors. One of them is the software industry. Due to highly skilled software engineers and easy access to raw materials, several software companies are choosing to set their foot in the Thai market.
Easy steps to get your company started
Company Name Reservation
There’s a need to come up with a unique name for the company. The company name cannot be duplicated. Hence, it is important to make sure no other organization holds the same name. But the approved corporate name will only be valid for 30 days. Also, as per Thai government rules, few words are prohibited as a part of a company name.
Filing of Memorandum of Association
Memorandum of Association needs to be filed with the Business Development office or Commercial Registration Department. This can only be done once the company name gets approved.
A Statutory Meeting to be convened
Once the company name gets approved and the Memorandum of Association is filed, a statutory meeting is held where articles of incorporation and bylaws are approved. Prior to this meeting, the share structure also needs to be defined.
Company registration application needs to be submitted, within 3 months of the statutory meeting, by the directors.
A tax ID card and a number for the company from Revenue department need to be collected for businesses liable for income tax, within 60 days of the start of operation of the company.
Few concerns regarding the process of Company formation
- If the company doesn’t operate on any kind of import and export, 51% of company shares should be owned by Thai nationals. Also, it is a mandate on the part of the company to have at least 3 Shareholders or Promoters.
- For work permit, the company needs to have a paid-up Registered Capital of at least 2,000,000 Baht.
- Finding a registered office space is another difficulty foreign businessmen face in Thailand. Non-cooperative landlords add to the difficulty, further.
- Apart from the mandatory Import/Export license, a business involving import and export needs to have some additional licenses and permits to establish it in Thailand.
- The company, like its name, also has to choose a Trademark that has to be unique. Duplication of the Trademark can delay the operation of the company.
- If the parent company is situated outside Thailand, an accounting report format is essential that must be approved by the parent company.