Starting a Limited Company
Thai limited company is the form of business whose capital is divided into a number of equal shares. The investors of a Thai limited company are called shareholders. It is the most popular form of business in Thailand because the liability of the shareholders is limited to the unpaid amount of the shares subscribed by them unlike Sole Proprietorships or Partnerships whose owners are exposed to unlimited liability of the business.
A Thai limited company must have at least three promoters (who become the initial shareholders of the company) who file a memorandum of association, convene a statutory meeting and register the company. During the registration, one can choose to obtain a tax identity card and to register the company into the social security system at the same time. Some companies are required to register into the VAT (Value Added Tax) system, depending on the types of business and the level of their gross income. They must also follow accounting procedures specified in the Civil and Commercial Code, the Revenue Code and the Accounting Act. Companies are required to close their accounts and have an auditor audit their books and file their audited financial statements once a year with the Revenue Department and the Department of Business Development.
A limited company registered in Thailand is considered a Thai company only if the majority of the shares are owned by Thais. If not, then that company is considered foreign according to the Foreign Business Law.
If your company is Thai majority owned, you can do almost any kind of legal business. However, if it is a foreign majority company, then you have to consult the foreign business law to see if your kind of business activity needs to obtain a foreign business license to operate in Thailand
Process to register a Thai limited company page gives you details of how to register a limited company in Thailand.