Steps To Start A Business in Pattaya

Pattaya is one of the most potential cities in Thailand for starting your business as it is only 150km east of Bangkok, it is deemed to be the first destination for multi-national tourist, expat, second home, pensioner and investor. Pattaya, certainly is the right destination for you to start the new chapter!

This content, we, W Law International (Thailand), pleased to provide relevant information for your consideration of your new business plan:

Step 1: Can foreigner own 100% in a company in Thailand.

This is the first issue to check, as if type of your business is restricted under the Foreign Business Act then foreigner cannot do such business in Thailand under foreigner’s name, you have a solution to set up your business with the structure of 49/51%

We furthermore provide legal service to design the corporate structure to enhance the right of vote to the minority as well as other arrangement to control the company by Special AOA, Shareholder Agreement as well as other relevant Agreements.

Some type of business even it is restricted for foreigner, however, such foreigner will be allowed to own major share or 100% share of the Company by applying for Foreign Business License (“FBL”), Board of Investment License (“BOI”), Thai-USA Amity Treaty, Thai-Australia Free Trade Agreement (“TAFTA”), Japan-Thai Economic Partnership (“JTEPA”)

Contact us for FREE to check your type of business whether it is permitted to be 100% foreign own Click https://homelawthai.com/contact-us/

Step 2: If your type of business is restricted but you are US Citizen, you can apply for Thai – US Amity Treaty

Thai – US Amity Treaty allows a US Citizen to conduct a business in Thailand with the exemption of Foreign Business Act, which means a company which minimum 50% share owned by US and up to 100% can apply for this license.

Step 3: Company Incorporation or Company Establishment or Company Registration according to Thai Laws

To Establish a Company Limited in Thailand helping the owner to have separated juristic person to have a right and obligation as stipulated by Laws especially the responsibility of each shareholder is limited to the unpaid share value hold by each shareholder.

Minimum 2 shareholders are required for company incorporation, with minimum registered capital of THB 10, however, popular number of registered capital is THB 1,000,000 for usual Thai company and THB 2,000,000 for foreign involved company as it effects the staying permit issue. Notwithstanding, number of registered capital should be stipulated in accordance with actual investment.

Some type of business is promoting by Board of Investment “BOI” as a result such company may get special benefits from Thai government such as Tax Exemption, Tax Rate Reduction, Own the land, foreign employee ratio with special condition and especially the opportunity to own 100% share of the company.

Step 4: Check the special advantage of BOI (Board of Investment of Thailand) as your company may be qualified.

Contact our BOI Lawyer for FREE consultation Click https://homelawthai.com/contact-us/

Step 5: Set up as Representative Office or Regional office by obtaining foreign Identification no. for foreign juristic person

Foreign Entity is allowed to set up representative office in Thailand with the condition that the representative cannot earn in Thailand and cannot do the business deal except for the following scope:

Sourcing material or service for the headquarter.
Quality check and control of the product purchased by headquarter in Thailand.
Product advisory which is sold by headquarter in Thailand.
Marketing and PR for new product or service of the Headquarter.
Report business activity in Thailand to headquarter.

Foreign Entity is also allowed to set up regional office in Thailand, if there is its branch or affiliates in Asia, scope of activities of the regional office are as the following:

Coordinate and control the operation.
Provide consultation and management.
Training and Human Resource Development.
Financial Management.
Marketing planing.
Product Development.
Product Research.

Representative Office and Regional Office are exempted the usual work permit and visa regulation by reducing the ration of 4 Thai to 1 Foreigner to 1 Thai to 1 Foreigner.

Step 6: Staying Permit for foreign director and foreign staff

If the company needs to employ foreign employee including foreign owner of the company, the company must be qualified according to the following requirements:

Registered Capital of THB 2,000,000 per one foreigner
Four Thai employees per one foreigner

Your company must also submit withholding tax form and social security properly every month before allowing to employ foreign employee.

Furthermore, Non Immigrant “B” should be applied from Thai embassy at other country by preparation of supporting document of your company in Thailand, conversion from tourist to Non Immigrant “B” can be arranged case by case.

Step 7: Licensing for your company

To conduct any business in Thailand, usually it is required to have specific license(s) for such business such as restaurant license, alcohol selling license, cannabis growing and selling license, factory license, hotel license, FDA for food, cosmetic & medicine, massage and spa license, etc.

Therefore, to make sure you have followed relevant Laws and Regulations, you must check which license(s) is required for your business.

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