Financial Crime World

Doing Business in Thailand: An Overview

Thailand is an attractive destination for foreign investment, offering a unique blend of culture, business opportunities, and economic stability. However, navigating the country’s complex regulatory landscape requires careful planning and attention to detail.

Company Formation

Choosing the Right Structure

When forming a company in Thailand, you have several options:

  • Public Limited Company (PLC): Typically used for foreign investment, PLCs offer greater flexibility and transparency.
  • Private Limited Company (PLC): The most common structure, PLCs are suitable for smaller businesses or those with limited liability.

Registration

Registration can be done online through the Department of Business Development (DBD) or through a registered auditor. Ensure you have all necessary documents and information before submitting your application.

Corporate Structure

Key Requirements

  • Minimum Number of Directors: There is no specific requirement, but at least one director must be Thai.
  • Director Responsibilities: Directors are responsible for managing the company’s affairs and making strategic decisions.

Taxation

Corporate Income Tax

  • Flat Rate: 20% corporate income tax applies to all companies.
  • SME Rates: Companies with a paid-in capital of THB 5 million or less and income from sales not exceeding THB 30 million qualify for reduced rates.

Mergers and Acquisitions

Public Takeover Rules

Public takeover rules apply to public limited companies listed on the Stock Exchange of Thailand (SET). There is no obligation to negotiate in good faith, but transparency and fairness are expected.

Employee Rights

Employment Law Protections

Employees have protections under employment law, but there are no specific rights or benefits related to company acquisitions.

Foreign Direct Investment

Foreign Business Act (FBA)

The FBA governs foreign investment and defines foreign ownership. Certain businesses are restricted for security, cultural heritage, or competitive disadvantage reasons.

Entity Closure

Dissolving a Private Limited Company

A private limited company can be dissolved by a special resolution of the shareholders.

If you would like more information on any of these topics or if there’s anything else I can help with, please don’t hesitate to ask!