The benefits of company registration in Thailand

Performing company registration in Thailand can be both exciting and exhausting.  There are many pitfalls and requirements that must be met in order to ensure that the business you wish to register is successful.  Not many people realise the amount of effort that takes place in terms of company registration in Thailand and feel that it is something of a simple process which is not exactly true.  Thailand has requirements and regulations when it comes to company registration in Thailand that governs each and every application they receive for every new foreign based business.

If the company registration is for a company that is similar to one that is already Thai owned and established then most likely it may not be approved.  If the company registered fails to have the correct number of Thai staff for every foreign staff member also then this can hinder the company registration process too.  There are many, many benefits for having a company in Thailand but the company registration process can often be more demanding than most people realise.  This is why, when it comes to company registration in Thailand, if you really want the inside edge and to benefit the most from it then it helps to get legal counsel before you attempt to do this.

Legal counsel in Thailand, when it comes to company registration in Thailand, is one of the best ways to ensure that you protect both yourself and your future Thai company.  These organisations will tell you all that is needed in terms of company registration in Thailand, all the documents needed, monies needed (to prove sustainability in terms of the business and to show it is generating a profit and can contribute to the Thai economy) and it can also help improve trade relations between Thailand and the rest of the world.

Many different people from many different countries come to Thailand with the idea of setting up their own business.  This helps improve trade for both Thailand and that company but only if the company registration process is followed.  If corners are cut or the business does not meet the required criteria then the company registration process will be terminated.

Company registration in Thailand is not open to everyone, the idea and company needs to be established enough and viable so that they are not competing with Thai owned companies or taking away Thai jobs in that particular business sector.  Company registration in Thailand can take over several weeks due to the amount of requirements and checks that must be made.

This does not mean that company registration Thailand is impossible, far from it, any good idea that is not encroaching on the Thai trade industries, as long as it is well researched and meets the requirements will usually prove a boon for the Thai economy providing jobs for Thais and foreigners alike.  When you see foreign owned businesses thrive in Thailand it makes the whole company registration process worthwhile, after all, all good things come to those who wait and registering a company in Thailand is certainly time consuming but ultimately very rewarding.

What are the benefits of Thai company registration?

In modern society not everyone can run a business. They may not have the business knowledge or mindset to make it work or they may be constrained by the requirements such as legally, financially and personally.  There are however many benefits to owning your own company and more and more people are looking from the West to the East to do this and this is why there has been a huge increase in Thai company registration in recent years.

It is not heard to see why when you look at what Thailand has to offer.  A GDP that is increasing more than its rivals and a population that is eager for new skills and technologies.  It is no surprise then that the majority of Thai company registration are for businesses that deal with teaching English.  And whilst, unlike in countries such as South Korea where the level and uptake of English is massive, Thailand does recognise the need for the language, after all, English is the language of business for the majority of business owners around the world.

Thai company registration for teaching English can be an exceedingly profitable venture but it can also be very costly.  There are obvious cost cutting measures that can be done by hiring foreign staff who may not be fully teacher trained or to offer training on the job or to employ them as subcontractors only, all of these are ways to ensure that your business survives in Thailand after the company registration process has been completed.

But it is not as easy as that when it comes to Thai company registration as shareholders of the business play an important part too.  Unlike Western business, Thai company registration stipulates that even though your business is either foreign ran or foreign owned, the majority of shareholders need to be Thai.

This is so that the business can prove it provides a benefit to society as well as showing that it is able to give jobs to Thai people and train them in skills and techniques that would otherwise not be available to them.  This is why the majority of foreign owned business in Thailand are specialists in either languages or technology.  Two key areas that are always welcome for improvement when it comes to providing business and opportunities to Thailand and its people.  If you perform Thai company registration in a field or marketplace that is already saturated then chances are the requirements to be successful will be higher so that your business can prove it really has what it is needed to maintain survival.

It also means that you need to be able to know enough Thai people on your staff to be the shareholders and they must have the majority vote also.  After all, Thai company registration is to protect both Thai people and foreigners when it comes to providing and doing trade in this country and so, as always, following and adhering to the requirements of Thailand company registration will be a surefire way of having success when it comes to having a business in Thailand.

Their law

When it comes to the Thailand company registration process I cannot count how many times people have told me that it is too lengthy or technical or that the rules are too convoluted to follow.  These same people end up giving up and their business ultimately fails and it is a shame really as this could have been the next big thing so the point of this article is to discuss whether or not the laws that govern the Thailand company registration are too strict and whether or not they should be relaxed to increase trading between Thailand and other countries.

The first thing to look at is why the process of company registration in Thailand is so lengthy.  Many skeptics believe it is so that the Thai government can give you the runaround and that they are not really wanting foreign businesses in the country and so they ignore you are drown you in draconian rules or requirements so much so that you end up just giving up.  This outlook may have some merit when you consider the quality of some of the so-called ‘businesses’ that suddenly spring up which are ill equipped or lacking in whatever they are trying to produce or sell and are just based in Thailand as that is the only other country that has allowed them to operate so far without being denied or immediately shut down.

The Thailand company registration process is also there to ensure that those who want to do business in Thailand and want to register a company here are entirely serious and can development ensure that the business is sustainable and that they are bringing, through this company, work or creating work in a profession that Thai people are not know for such as computing or electronics.  In this sense the rules that govern the Thailand company registration make a lot of sense as the Thai government is just trying to protect Thailand as well as increase foreign trade at the same time which can definitely be quite the circus act to follow and juggling both of these successfully is quite a feat. In that manner then it makes sense that the Thailand company registration process is lengthy with very strict requirements as they are just trying to protect the country.

This means that ultimately the Thailand company registration process is something for your own protection as I am sure that there have been many applications that have been submitted and approved but that the company collapsed due to not being able to perform as they originally stated or because, in the end, they ultimately did not meet the requirements that were asked and so therefore they failed or were forced to close, make no mistake, Thailand takes the Thailand company registration process very seriously to ensure it is not swamped with fake businesses or businesses that ultimately end up going nowhere.  As ever then it make sense to make sure that all areas and aspect of the Thailand company registration process is followed to ensure successful business ties in whatever business deeds you are trying to achieve in Thailand.
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