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ResourcesCorporate and Tax AdvisoryThailand Corporate LawRegistered Capital And Thai Company Setups?

Registered Capital And Thai Company Setups?

Transcript of the above video:

As the title of this video suggests, we are discussing corporate set up here in Thailand and we are discussing registered capitalization. Thai Companies, Limited Companies, so the way to look at these is much less like an LLC, much more like what we would call a C Corp in the United States, or an Inc. an Incorporated entity. An incorporated entity, a legal limited company here in Thailand, there are certain formalities, one of them is registered capitalization. So there is a certain amount of minimum registered capitalization - I believe 100,000 Baht is the absolute bare minimum - capitalization required to maintain a Limited Company. 

Now it goes up from there. Registered capitalization, then the registered capital may go toward putting fixed assets into your business, fixed costs associated with the business, you can draw on registered capital to go ahead and do that. Something to bear in mind with regard to Work Permits and Business Visas though. There are minimum thresholds, minimum criteria for registered capitalization for Work Permits and Business Visas, these will vary depending on the underlying circumstances in the given case. And there are even outside factors such as marriage to a Thai for example, which can factor into the analysis of whether or not a company's registered capital meets the requirements for issuance of a Work Permit and a Business Visa. So there are a number of factors to consider when looking at registered capitalization for a company in Thailand. 

For those who find this a little bit overwhelming or just kind of generally, not necessarily confused, by the overall system or Corporate Law here in Thailand, it may not be a terrible idea to contact a legal professional, gain some insight and guidance into how best to proceed.