Company Formation in Thailand

1) Are there any restrictions on foreigners doing business in Thailand?

Yes. The Foreign Business Act 1999 restricts foreigners from having majority ownership of companies engaged in the businesses listed therein.

2) Can foreigners have a majority or 100% ownership of a company?

Yes, if the business of the company is not reserved for Thai nationals or permission is granted by the competent authority. But in that case, it will be a foreign entity under the foreign business act and licences or permits might be needed to operate.

3) What types of business organizations can be registered?

Sole proprietorships, partnerships, branch offices, limited liability companies, regional operating headquarters, representative offices and regional offices, etc.

4) How long does it take to establish a private limited company?

Since July 2008, it's much faster. It will take about 1 week to prepare the documents and 1 day to register the company. It could be longer to get all documents to get the Tax ID and VAT registration.

5)  How many shareholders are required under Thai law?

A private limited company must have a minimum of 3 shareholders at all times, since July 2008. This number was 7 before. Apublic limited company is required to have a minimum of 15 shareholders at all times.

6) How many directors are required under Thai law?

At least 1, but it can be 2, 3, etc.

7) Can a foreigner be a director?

Yes.

8) Does a director need to be shareholder?

No.

9) Must directors and/or shareholders be present in Thailand?

Not generally required except in the case of public limited companies, where not less than half of the members of the Board must reside in Thailand.

10) How old must be the shareholders?

There is no age in the Law. However, the promoters or the people that want to start and register a company must be at least 12 years-old.