Advantages of a limited company
Foreign business owners can enjoy many benefits when opening a limited company. As it is similar to LLCs it is the easiest and best way for foreigners to do business in Thailand. Because they are familiar with this kind of business structure. more than any other type of business
In addition to being like an LLC, shareholders’ liability is limited. Shareholders and investors are protected when investing in this type of company, i.e. they will not lose more than they invest in the company. This means that if the business fails Shareholders will only lose their investment.
Limited Liability Company uses a corporate division structure giving owners the option of full control. both dividend allocation and the right to vote can be adjusted at any time So the owners don’t have to worry about cancellations or mergers as the company grows. This gives owners the assurance they need to start and maintain their business.
This structure also gives business owners flexibility. because the company only needs a license to operate the business for all types of business clear flexibility But everything is clearly defined in writing. Including the duties of people in the organization which board members can refer to such documents.
Limited company can be completely owned by foreigners. But there are some limitations that Pongpanich Accounting will have to double-check with you. This will ensure that your company meets the criteria for foreigners 100%. If not, Pongpanich Accounting will provide further instructions. so you can start your business
In addition, it is easy to hire foreign workers. Including executives with a limited company When you create a company, you can apply for work permits for employees. which can travel back and forth to work in Thailand While still in the company, Pongpanich Accounting can also help you apply for and obtain other necessary licenses.
Can access corporate bank accounts at any time Even not in Thailand from your online accounts, including checking, savings accounts and foreign currency accounts
Disadvantages of a Limited Company
As the simplest and most popular choice, Thailand Company Limited also has disadvantages that you should be aware of before opening a limited company.
- Limited companies are 51% owned by Thai people unless the company has to apply for a Foreign Business License (FBL) first. Not all of them can be done as a foreign company. Pongpanich Accounting’s legal team can advise you on whether or not your business can be done under the law. Foreign Business Act
- Limited company Foreigners are allowed to be hired in a 4 to 1 ratio, ie at least 4 Thai nationals are required to hire 1 foreigner.
Legal requirements
The legal requirement to form a limited company is that the company must have at least 3 founders, 1 director and 1 auditor.
Doing business must submit a memorandum of association of the company. Hold a legal meeting and various registration documents which can be viewed in detail as follows
Timeframe for establishing a limited company must meet the requirements as follows:
Some limited companies set up in one day Although it may take several days. or several weeks to follow the process. to establish a company
The company name must be reserved with the Business Development Office in the Ministry of Commerce. It provides guidelines to follow the guidelines for retaining rights in your company name.
must submit a memorandum of association Enter the company name, address, personal details of the founder. authorized capital and the number of shares that each founder has, as well as the purpose of establishing the company
All parties involved must conduct a meeting in accordance with the law. During the meeting, you must approve the merger regulations, by-laws, elect the board of directors. appoint an auditor approve expenses and transactions with shareholders
company director The company must be registered with the Commercial Registrar.
Must register for a specific business tax. or VAT Pongpanich Accounting’s lawyers can help you determine if this is necessary for your business.
It’s easy to set up a limited company with Pongpanich accounting starting at 24,900 baht. You don’t have to worry about details or documents. You can follow a simple registration process. on the online platform Pongpanich Accounting
Contact Pongpanich Accounting today to learn more about setting up a limited company in Thailand. with our help Your company formation will be ready in no time.