Thailand is among the countries that serves as a good place to do business. After all, the said country has always been known for having a welcoming economy. In addition to that, the company registration in Thailand process is not that difficult as well. However, there are certain things you need to know if you are intending to establish and register a business there.
First of all, you need to know that individuals who plans to do business through company registration in Thailand often experiences issues when it comes to the company ownership. This is because there is a law in Thailand that a company should be majority owned by their countrymen. In other words, if you are a foreigner on the said land, then there is a need for you to find Thai partners who would be willing to purchase about 51% of the shares of your company. In some cases, foreign ownership can only be up to 39%, so you better be aware of this fact in order for you to be successful in your business venture.
On the bright side, just like any other rules or law in company registration in Thailand, there are certain exemptions as well. For example, you might be required to have a foreign business license that you can get from the Ministry of Commerce. In order for you to be granted by it, you need to be in good terms with the Board of Investment. You can do this by letting them know that you are either investing a huge amount of money or your business would be able to offer a lot of employment opportunities to the Thais.
Now, this does not necessarily mean that it is impossible for you to establish a company in Thailand that it 100% owned by a foreigner. As a matter of fact, you can still do it. However, you cannot expect that you can run your business legally. This is the reason why company registration in Thailand is important, unless you are prepared to pay money as a fine once your business has been caught. In addition to that, if you are planning to acquire a permit, there is a high chance of it being rejected if your company is a majority foreign owned company.
Because of such law in company registration in Thailand, there has been a lot of business owners who have paid off a Thai national to be their major shareholder as they didn’t know one in the initial development phase of their business and once the company has been registered and the business owner was able to find a more trustworthy and real Thai partner, the Thai that has been paid off resigns from their shareholder title holder and then transfers the shares to the new Thai partner. After all, shares cannot be left without an owner and that is another law that should be abided by those who want their company registered in Thailand.