thailand corporate lawyer | Lawyers in Pattaya

Starting a business in Pattaya

For some people, establishing his own business is much better and more satisfying than working for somebody else. After all, personally owning a business is having the chance to do things his way and his own time by using his personal methods.

And for starters and veterans alike, Thailand cannot be a bad choice to start a business. Expatriates are very much welcome in the country. Other than that, the economy is on a favorable condition and its government has been continuously revamping its rules and has embarked on initiatives to help facilitate and fast track the establishment of such ventures.

Actually, the availability of guides in establishing, conducting and managing one’s own business in Thailand is enormous. These guides can simply be found everywhere. One can find them at the bookshops, magazines and through the simplest method, searching them through search engines.

But, not every written step found on these guides can simply be done by anyone, especially, to a newbie in doing business in Thailand. Moreover, faithfully following every step do not really guarantee 100% success rate or 100% kink-free processing of the business application though when in Thailand, to minimize the impact of such risks, there are only two things that a beginner in doing business in the Kingdom must remember: never circumvent or violate any Thai laws and do a research.

Doing a research

This does not necessarily imply for an aspiring businessman in Thailand to diligently adhere to the “basics on research methods.” Doing a research simply means, the soon-to-be proprietor in the Kingdom must know everything that he should know with regards to his prospective Thai market.

Yet, when considering Thailand as his business destination, chances are, this business-minded individual already had an idea on what type of venture he will be introducing to the Kingdom.
With research, he will be informed that expatriates are only allowed to engage to a limited number of businesses types as some of them are restricted for Thais only while some may be allowed to foreigners like him.

Other areas of concern that he must consider including to his research are the following but not limited to:

Taxation
Type of business allowed to expatriates
Licensing procedures
Incorporating procedures
Legal issues
Property ownership
Required capitalization
Labor and related issues

Also, a good research work in Thailand will bring him to the Thailand Board of Investment center, the One Start One Stop Investment Center (OSOS).

Comparing to the guides found on magazines and the internet, the information that the business-venturing individual can obtain at this center will surely be genuine, up to date and precise.

Why is this so?

It is because the OSOS houses every government departments and offices that an enterprising individual needs to approach and inquire.

Here, the aspiring businessman in Thailand can compare the information that he obtained through the magazines, books and the internet or through small talks with established business owners with the information that he will get at the OSOS.

But, aside from obtaining information and if all the necessary documentation are already in place, the businessman can also submit his application at the center too.

Never circumvent or violate any Thai laws

Circumventing or violating the laws in Thailand should never be an option for an aspiring businessman even if doing such will ensure fast facilitation, approval and establishment of his business in the Kingdom.

Like in any other country, he must abide by the laws and policies of Thailand otherwise his application will be rejected or worse, his shop will be closed down and he will find his immigration status in peril if ever he will be granted with the permit and license to operate a business in the Kingdom.

While he can obtain the information on what Thai laws and government policies to follow at OSOS, it will be of his best interest if he will find a topnotch and reputable corporate lawyer or Thai law firm and tap their expert views and opinion on the legal side of conducting business in Thailand.

Not only that, hiring the services of such lawyer or law firm will also help him ensure that his rights as an enterprising expatriate will be protected as guaranteed by law.

3 Steps to Starting a Business

Business registration in Thailand is a complex procedure thus the promoters of the company do need a sound and expert advice on the matter. This will help minimize expenses as well as reduce the likelihood of problems in the registration process. When problems in the establishment and registration process are addressed earlier, the registration process of the business can be done quickly.

The most usual type of business entity used in the Thailand is the Private Limited Company.

The 5 Business Registration Steps

Corporate Name Reservation – this is the primary step in the registration process. A promoter of the company must file for name reservation at the Department of Business Development of the Ministry of Commerce. The promoter must submit at least 1 company name. The reservation can be done online and the result will be provided within 30 minutes.Moreover, your company name must contain the word Limited at the end of it and that it must have a Thai translation for non-English speakers and also because your company will be registered under Thai language.
Memorandum of Association – when the reservation of the name has been approved, the company must then submit its Memorandum of Association. The MOA must include the following information: company name, province where it is located, the scope of the business, capitalization to be registered and the names of the promoters.Furthermore, the MOA also contains: a statement detailing the limited liability of the shareholders, amount of share capital and number of shares of each promoter.Aside from the names of the promoters, the MOA must also contain their addresses, work and specimens of their signatures.
Statutory Meeting – a statutory meeting is convened after the share structure has been defined in order to determine the following: Adoption of the Articles of Association (By-Laws), Sanctioning of Contracts and Expenses incurred by the promoters in the promotion of the company. It must also contain: fixing the amount of remuneration to be paid to the promoters, if there is any; fixing the number of preferred shares and the extent of preferential rights; fixing the number of ordinary or preferred shares to be allotted and lastly, the appointment of the initial director or directors and auditor or auditors and the determination of their powers. Also, this is the time wherein the promoters will transfer the business to the directors.
Registration – the directors of the newly formed company shall submit the application within three months of the date of the statutory meeting in order to fully establish it. The promoters are required to provide the name, license number and remuneration of auditors that the company is planning to recruit. The fee is 50 Baht per 100,000 Baht of registered capital to register MOA. A fee of 500 baht per every million baht of registered capital to register the company itself.With the ongoing investigations on companies using Thai nominees (a non-legal process of circumventing Thai laws), you can expect that the Thai shareholders of your company will be asked to declare the sources of their investment in your company. The Thai government would want to know whether your Thai partners are legitimate shareholders or if they are just being used as dummies to make it appear that your company is complying with the laws.The rule applies if an applicant attempts to register a company with up to 49% foreign ownership or a foreign director or both. But it does not apply to companies registered with majority foreign-ownership.
Registering the Tax Documents – companies subject to income tax must obtain a Tax ID card and number at the Revenue Department within 60 days of incorporation.Your company must also be registered for VAT so that you may be allowed to secure work permits for non-Thai employees of your company.