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Most common type of company in Thailand because easy to set-up, it is named “Limited” because the liability of shareholders is limited to what they invest in the company, it is Thailand’s equivalent of a Limited Liability Company (LLC) in other countries.
Plizz makes it easy for you to register your company in a few clicks with its user friendly online platform.
Foreign business owners enjoy lots of benefits when opening a Limited Company. First, because these companies are so similar to LLCs, this is an easy way for foreigners to break into the business world in Thailand. They are already familiar with the business structure, so they already have a level of comfort they might not enjoy with another type of business.
Also, like an LLC, the liability for shareholders is limited. Shareholders and investors are protected when they invest in this type of company. They cannot lose more than what they invested in the company, so if something happens and a business folds, shareholders will only lose their capital investment.
A Limited Company uses a tiered corporate share structure, giving owners the option to maintain full control. Dividend allocations and share voting rights can be adjusted at any time, so owners never have to worry about relinquishing control as the company grows. This gives owners confidence as they start and maintain their businesses.
This structure also provides flexibility for business owners. Companies just need a relative business license to engage in all types of business. While there is flexibility, there are no grey areas with a Limited Company. Roles are designated in writing, so every person knows what he or she is obligated to do for the company. Also, because it’s in writing, board members can refer to the materials if they need to clarify anything.
A Limited Company can also be completely owned by foreigners. There are some restrictions that Plizz will discuss with you to ensure that your company meets the criteria necessary for 100 percent foreign ownership. If you don’t, Plizz can explain the steps you need to take to begin your business.
It’s also easy to hire foreign employees, including executives, with a Limited Company. Once you create your company, you can apply for work permits for your employees. Then, they can travel to and work in Thailand as long as they hold a position at your company. Plizz can also help you apply for and obtain the necessary permits.
Finally, you’ll have access to a corporate bank account when you form this company. That includes a checking, savings, and foreign currency account. Don’t worry if you aren’t in Thailand. You can access your accounts online.
As the easiest and most popular option, a Thailand Limited Company does not have many drawbacks. However, there are two drawbacks that you should be aware of before moving forward.
Thailand has some legal requirements for setting up a Limited Company. First, the company must have at least three promoters, one director, and one auditor.
The business must also file a memorandum of association, hold a statutory meeting, and register the incorporation papers. Let’s look at this in greater detail.
Some Limited Companies are set up in a single day, although it can take several days or weeks to finalize the process. You must go through various steps to set up your company.
|The registered capital can be as low as 15 THB (at least 5THB per share are required)|
|You need at least 2 shareholders|
|A minimum of 25% of the registered share capital should be paid up|
|In case of foreign ownership, shareholders must prove the availability of such 25% of the registered share capital,|
|A foreigner can choose to form a Thai majority company whereby the Thai partner(s) will have a minimum of 51% stake in the company, and the foreign associate(s) a maximum of 49%|
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