Thailand is one of the most attractive destination for business investment and seem to be one of countries which is easiest to start business, as the cost is very compromise in almost every angers compare to readiness of facility and infrastructure.
Therefore, in order to start your business in Thailand we will help provide example of advantages from establishment of a company instead of running business in your individual name.
- Foreign Business Restriction : There are restrictions to various businesses if you are foreigner, according to Foreign Business Act, causes you as foreign individual cannot do unless you still can do with Thai partner and hold maximum 49% of total shares which making this company a Thai person and not subject to Foreign Business Act.
- TAX : Business in an Individual name pays income tax from the actual income deducting specific expense ratio as stipulated by Law unlike a company that taxable income calculated by actual income deducting actual expenses, furthermore Individual income tax rate is progressive rate but the corporate income tax is flat rate.
- RELIABILITY : Doing the business as Company is more formal, customer usually prefer to use service or buy product from reliable business, this may help you better sales.
- WORK PERMIT & VISA : Company also allowing Work permit & Visa benefit if comply with immigration’s regulation such as 2 million baht registered capital plus 4 Thai employees allows 1 foreigner, however, the requirement can be less if the company is applicable to BOI regulation.
- LIABILITY : Company limits liability to third party unlike individual that always bear full responsibility in every ways. According to the Law of Thailand, shareholder of the company bears responsibility to third party only equals to the unpaid share value holding by each shareholder.
- FINANCIAL : Usually the company which has been running for over 2 years and gains profit in the annual report, such company may be able to access financial support by Thai banks.
- OTHER : There are many advantages from running business as a Company that haven’t been mentioned in this article.
If you are looking for advice from Corporate Lawyer please feel free to contact us, you can use the code “CORP6000” for THB 6,000 discount for meeting with our Corporate Lawyer FREE 1 HOUR, follow this link https://www.w-lawthai.com/en/product/meeting-with-corporate-lawyer/
W Law International (Thailand)
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