Thailand Company registration - Company Set up in Thailand
Krabi Real Estate & Properties with Tropical Property Agency Co., LTD

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Thailand Company registration

Company setup

The following are the company formation procedures with the Thai Ministry of Commerce:

1 Reserve the Name. The applicant provides three company's names to register according to their priority, so that a lawyer shall reserve them with the registrar. If the first name has been used /incorporated, then the second or the thud one shall be reserved accordingly. This will take about one to two days.

2. Apply for the First Registration. After the registrar has approved company's name, the applicant has to nominate seven initial promoters (people who want to set up the company to register A Memorandum of Association.

3. Apply the Second Registration. From the eighth days upon the registrar has approved the Memorandum, a lawyer shall apply for a second registration to complete the whole process of the company formation, which approximately takes two weeks.

4. Appling for a Work Permit. If the applicant wants to apply for a work permit to work legally in Thailand, he/she has to set a registered capital (capital to use in the company) 2,000,000 Baht for one work permit application.

5. The Government Fee. The fee for setting up 2,000,000 Baht registered capital company is approximately 13,000 Baht, and receipts shall be provided.

6. The Lawyer Fee. The legal professional fee on the whole process of company formation is 20,000 Baht. Lawyer practices involve with preparing, checking, translating and certifying all support documents and later submitting the applications to the registrar, the Ministry of Commerce.

Summary on Legal, Accounting and related services

I. Legal Services
1. Labour and Employment
The important labour and employment laws and regulations involve the following:

1.1) Employment Agreement
Legal work shall include preparing, drafting and making the employment agreement both
in Thai and in English versions. Professional legal fee is about 5,000-7,000 bath

1.2) Working Regulations
Under the Labour Protection Law, the employer must have working regulations to be
reviewed and certified by the Ministry of Labour if the employer (or the company) employs staff
more than ten persons. Legal practices involve with drafting, making and filing those regulations
to the Ministry for final approval. Professional legal fee is 7,000 Baht.

1.3) Social Securitv Fund
According to the Social Security Law, each employer and employee shall contribute 5%
monthly of the salary to the fund Professional legal fee on applying for registration for social
security number is 5,000 Baht

2. Lease Agreement
The legal work on lease agreement is preparing and negotiating with the landlord including
drafting and making the agreement both in Thai and in English version. Professional legal fee is
about 7,000-10,000 Baht.

3. Shareholder Agreement
The shareholder agreement shall be made in Thai and English version for useful reference in the
future. Professional legal fee shall depend on the contents and number of shareholders
4. Tax Matter

To pay less tax and get more income and profit, the company should make tax planning the business. Major tax practices concern with leasing, selling and buying the property,
corporate and personal income tax, value added tax (VAT), and withholding tax. Tax planning
strategy shall be advised on the case by case basis.

Tax identification number application

The company must have Tax ID Number and this must apply from the Revenue
Department. Professional legal fee is 3,000 Baht for the company and 3,000 for each foreigner
Tax ID.

4.2) Value Added Tax (VAT)
If the company has income per year from 1,800,000 Baht or more, it has to register VAT
with the Revenue Department. Professional legal fee on this registration is 5,000 Baht.

5. Work Permit
A foreigner who wants to work in Thailand must have a work permit. Application, position
and job description shall be under the Labour 0ffice regulations. Professional legal fee for work
permit application is 15,000 Bath.
5.1. Work Permit Extension
Before the work permit expires, a foreign worker has to extend the visa with the Immigration
Office and later renew the work permit with the Labour Office, Krabi Professional Legal fee on
renewal a work permit is 5,OOO Baht. Learn more about Work Permit

6. Insurance
Lawyer will advise on insurance arrangement, reviewing the insurance policy and insurance
agreement. Legal fee shall be based on each or insurance package of the company.

11. Accounting Service
1. Monthly Accounting Matter
Under the company laws and related regulations, the company has to keep records of accounting
and later make a balance sheet and financial statement approved by a Certified Public Accountant
(CPA) to be submitted to the Ministry of Commerce every six month and at the year end. The
laws require a qualified accounting officer who graduated a bachelor of accounting to undertake
and certify monthly accounting work. Therefore, the company should collect information
concerning costs, expenses and income and send receipts or relevant documents to us to do the
work under an accounting standard process accepted by the authority.

Monthly VAT

If the company has registered VAT, it has to file monthly to the Revenue Department with
relevant documents, and the accounting officer will be responsible for this.
Monthly fee on accounting service including VAT filing to the Revenue Depatment is
6,000-7,000 Bath

3. Annually Financial Statement
At the end of the year, the company has to submit a financial statement to be reviewed and
certified by a CPA (or Auditor) to the Ministry of Commerce. Professional CPA fee depends on
the company income.