Thailand is a great place to do business. Thailand offers a variety of business structures to those looking to establish or expand their operations in the country.
There are three main types of business structures in Thailand. One of them is the company limited. Like a company limited, the branch structure is allowed to trade and earn income in Thailand. But unlike a limited company, a branch office in Thailand does not have shareholders or directors. Rather, it is an extension of the foreign head office. The head office retains the right to appoint directors and shareholders.
What Are Business Structures
There are three common types of business structures in Thailand. These are: partnerships, limited companies, and sole proprietorships. A partnership can be an unregistered or registered ordinary one. In the former case, each partner is individually responsible for the obligations of the business, while a limited partnership requires registration and limits each partner’s liability to the amount of capital contributed to the partnership. While all three structures have their own unique advantages, they have similar drawbacks.
A limited company has similar advantages to an LLC. While it has a lower liability than a corporation, it is not taxed like a corporation. As a limited company, a sole proprietor cannot lose more than the amount of capital invested. This structure offers flexibility to foreign business owners. For example, a corporation has to obtain a license before it can start operations in Thailand. It is not always easy to obtain a license for a limited company in Thailand.
Special Permits For Companies
If you’re planning to set up a company in Thailand, you may need to acquire special permits or licenses. The specific type of permits required depends on your type of business and the laws and regulations of Thailand. Certain businesses require special permits for things like tourism, liquor, food, and childcare. You can get assistance from a legal firm that specialises in obtaining such permits.
In order to provide financial services through a company in Thailand, you must obtain a license from the Bank of Bangkok. Some of the activities monitored by the bank include: commercial banks, credit finance companies, asset management companies, and e-payment channels. In addition, businesses in certain categories require additional permissions from the Ministry of Finance. This is an important consideration for foreign investors and companies operating in Thailand. Ultimately, these permits are necessary for doing business in Thailand.
Board Of Investment
The Board of investment in Thailand (BOI) is responsible for promoting foreign investments in Thailand. Companies with BOI registration may benefit from several tax benefits, and they are not subject to VISA or work permit rules. Moreover, businesses registered with BOI will be eligible to invest in high-profit industries, reducing the risk and initial costs of investment. The board’s website explains how to apply for a BOI license for your company, and you may want to hire a BOI Thailand law firm if you are planning on a BOI registration.
The application process is usually quick. An applicant must submit all documents within the stipulated time period. The application process may take as little as five working days. Once the application is accepted, the BOI will inform the applicant about the benefits assigned to their project. In addition, the BOI will issue a separate application form for BOI promotion certification, which must be completed and submitted within 30 days. The business may then submit the necessary documents to the Department of Business Development to establish their company.