Doing Business in Thailand
Foreign Investment is restricted to certain types of business activities under the Foreign Business Act which divides businesses into three categories.
Foreign investors are strictly prohibited to carry out business activities such as television station, radio broadcasting, newspapers, land trading, rice farming, trading Thai antiques.
Foreign investment is allowed to do businesses under this category, subject to permission from the Minister of Commerce with approval from the Cabinet or authorization from the Board of Investment or from the Industrial Estate of Thailand.
The businesses listed in this category are for instance production and sale of fire arms, explosive, armaments, ship, air crafts, military vehicles, air transportation, mining, wood fabrication.
Foreign investors are allowed to carry out businesses in this category subject to permission from the Director General of the Business Department of Thailand together with approval by the Foreign Business Committee.
The businesses listed in this category include forestry, fishery, construction, engineering, accounting and legal consulting and advertisement.
The Board of Investment is a Thai government body authorized to grant investment privileges to both local and foreign investors if investment projects approved under Thai investment laws. The privileges if granted include exemption from tax, duty, dividend and/or royalty payment.
The Industrial Estate of Thailand is also authorized by the Thai government to grant privileges to enterprises doing business in industrial estates as designed by the Thailand industrial estate laws. The privileges to be granted are similar to the privileges offered by the Board of Investment
The private limited company is commonly utilized for doing business in Thailand by local and foreign investors provided that Thai shareholders must hold majority equity in the private limited company. The liability of shareholders is limited to unpaid amount of holding shares. The sole proprietorships, ordinary partnerships and registered ordinary partnerships are alternative business types for doing businesses in Thailand.
Formation of Company
At least 7 individual promoters are required to establish a private limited company, The company must reserve its corporate name at the first stage and files its memorandum and articles of association as well as application for company registration application with the Ministry of Commerce.
In general, no requirement for minimum registered capital of a private company. However, the minimum registered capital for foreign
[ Dec 31, 2005 ]