5 Common Reasons Why Foreigners Would Set Up a Company in Thailand
Establishing a company in Thailand can be a serious moneymaking engagement though for others, it might be just a piece of front line. Here are some common reasons why foreigners would set up a company in Thailand.
Foreigners cannot own a land in Thailand and setting up a company is one way to go over it. A Thai registered company with majority of Thai ownership can buy land in Thailand. In fact, it has been very common in the past that a foreign national acquires interest in Thailand as minority shareholders in a Thai majority owned company. Foreign companies with BOI privileges or “BOI sponsored companies” can also lease or own a land.
For most Thais, obtaining a visa to other countries is a struggle. Setting up a company in Thailand is one best way to help your Thai girlfriend/fianc?ï¿½e/spouse to get a visa. You can hire your partner to work in the company or better yet make her one of the shareholders. This way she can build an employment record and help her become financially stable to make her qualified to apply for a visa. This is very common for Foreigner-Thai couple living apart and would intend the Thai partner obtain a visitor visa to another country.
Thailand is known world over as the land of smiles. But in contrary, others call it land of scams for some reason. If you have a girlfriend or fianc?ï¿½e and you plan to get married, you may consider protecting your asset by setting up a company where both of you are shareholders prior to proceeding on the legal process of your marriage. We can never predict the future. For you all singles, it is never too late.
In Thailand, there are agencies and law firms who can assist foreigners obtain a one year Thailand visa depending on nationalities and country of origin. However, visas issued outside of Thailand may require a visa run every 90 days. It is a hassle for some to travel to the border every 90 days. If you own a company in Thailand, you can obtain the one year visa just within Thailand and can stay for the period of 1 calendar year without the need to leave the country at all.
Obtaining a work permit in Thailand is not an easy task for foreigners or companies with foreigner employees. The Labor Department is becoming stricter in providing this permit lately and the company must also comply with all documents required. Setting up a company in Thailand with initial capitalization of at least 2 million baht is by far the easiest and fastest way of getting a Work Permit and long term visa to Thailand.
Registration of company at the Ministry of Commerce can now be completed on the same day as the registration of the Memorandum of Association given that all registered shares have already been subscribed, statutory meeting has been held, promoters have handed the business over to the directors, and the 25 percent payment of the total shares has been paid by the shareholders. For companies that fall under the definition of Foreign Business Act, the initial capital is 3 million baht 100 percent fully paid up (exceptions may apply). However, for those that do not engage activities specified in the FBA, the initial capital requirement is 2 million baht fully paid up. Other minimum registered capital requirements may also apply if the company is to employ foreigners.
You may consider hiring a law firm in Thailand who speaks both English and Thai languages to assist you with Thailand Company Registration and to process your Thailand Visa and Work Permit.