Business in Thailand

Preparing to do Business in Thailand

It is imperative that foreigners have proper legal advice prior to engaging in any business activity in Thailand. Thailand laws are strict, in some cases unusual, and violation of these laws can result in sever criminal penalties. For example: if you were found working in Thailand without a work permit you would be arrested and immediately incarcerated.  The maximum penalty for working without a work permit is 5 years imprisonment. While receiving the maximum penalty is unlikely, deportation is likely.

Please be advised that what is a civil offense (not involving the police) in many countries may be a criminal offense (police arrest) in Thailand.

In Thailand, it is not uncommon for newly established businesses to find their already established competitors filing complaints about them with the police. (FYI: the criminal justice system in Thailand is accusation based and police will act without evidence that a crime has been committed.) The result is the arrival of 20-30 uniformed police officers at your place of business, where they will question your staff and perform a detailed search of all files, documents and computers. Your competition is hoping the government puts you out of business. At minimum it is intimidating harassment.  If the police find you to be operating a business or working in violation of the law, you will be arrested on the spot.

Every new business should anticipate that their competitors will attempt to use the authorities to close them down or harass them.

It is the job of your legal counsel to protect you from any and all possible violations of the law and assist you in setting up your business as required under the letter and intent of the law. Informed legal counsel will not expect you to have knowledge of the legal requirements of doing business in Thailand. Proper legal counsel will not even expect you to know what questions to ask in order to obtain knowledge of the legal requirements of doing business in Thailand. It is counsel’s job to inform you, and protect you, so you can concentrate on running your business with peace of mind.

You will find that there are varying levels of competency and professionalism within the legal community. Many firms promote low fees for the creation and registration of new business entities, business visas and work permits. You will learn the costs are actually much higher than advertised when you visit their offices.

To reduce your legal fees, there is a tendency in the Thailand legal community to provide you with a portion of the services required. Having only partial adherence to the complete range of legal requirements, you will later learn that you have violated the law.  You will have had no prior knowledge of the legal requirements and this will created a serious problem for you.

To avoid problems such as this you should always endeavor to retain legal counsel who you trust and respect, and not select legal counsel based on low prices. It is universally true,, “we get what we pay for”. Trust and respect are earned, not advertised.

Thai Government Incentives

The Thai government has established several programs designed to encourage foreign business investment and development.  We will advise you as to which programs will offer you the most benefit.

Depending on your nationality and your chosen industry, the Thai Government offers many opportunities to conduct business within the Kingdom; moreover they also protect their citizens and industries with some restrictions that apply only to foreigners.  There are 41 restricted businesses and 39 restricted professions that foreigners are prohibited from engaging in.

At Thailand Law Center we specialize in leading the way for our clients through the business creation process by evaluating your business strategy to ensure you have all achievable protections embedded into your business ventures.

Types of Companies

No matter what country you have citizenship with or what type of business you want to operate in the Kingdom of Thailand, you have to be informed as to the changeable business rules and regulations that Thailand requires of all business. We can consult with you as to what type of business entity will be most advantageous for you depending on your business plan and lead you through the process of creating your business in Thailand.

Company Registration Packages

Basic package: 60,000
Lawyer Fee, Government Capitalization Fees, Government Application, Stamp, Certificates, Company Stamp & Seal, Corporate Tax Registration, Corporate VAT Registration.

Standard package: 105,000
Lawyer Fee, Government Capitalization Fees, Government Application, Stamp, Certificates, Company Stamp & Seal, Corporate Tax Registration, Corporate VAT Registration.
Virtual office and office set up.

Smart Package: 155,000
Lawyer Fee, Government Capitalization Fees, Government Application, Stamp, Certificates, Company Stamp & Seal, Corporate Tax Registration, Corporate VAT Registration.
One year business visa and work permit including government fees, monthly and annual accounting up to five employees and up to 10 million baht per year sales, including monthly tax filings for withholding and VAT, monthly employee withholding tax.

Superior package : 195,000
Lawyer Fee, Government Capitalization Fees, Government Application, Stamp, Certificates, Company Stamp & Seal, Corporate Tax Registration, Corporate VAT Registration.
One year business visa and work permit including government fees, monthly and annual accounting up to five employees and up to 10 million baht per year sales, including monthly tax filings for withholding and VAT, monthly employee withholding tax.
Virtual office and office set up

Limited Company: foreigners own 49%

There are many ways to form a company in Thailand and a popular way for foreigners is a Thai limited company with the foreign owner holding 49% of the company’s ownership and having two or more Thai citizens dividing the other 51% ownership. Our lawyers routinely consult with clients and find the best overall method of creating a company to maximize protection for their interests and enable them to conduct business in Thailand.

Amity Treaty Company

American Citizens can own 100% of a Thai company under the Amity Treaty

Our clients require a simple explanation of this company type that is often over complicated and misunderstood.  Simply stated an Amity Treaty company is available only to American Citizens. The benefits of an Amity Treaty company are: 1) 100% ownership of the company for American citizens. An American person can own a sole proprietorship but must have two people who are either foreigner or Thai to hold two shares. Three people are required to organize the company.  If you were to issue 1000 shares of common stock, 9998 shares to yourself and issued 2 shares to two other people, 1 share each, they would only own .02% of your company. 2) An Amity treaty company is allowed to operate in many areas otherwise closed to foreigners with the following exceptions: communications
transportation, fiduciary functions banking including deposit functions, land ownership, exploitation of land or other natural resources, and domestic trade in indigenous agricultural products.

Thailand Law Center is an Amity Treaty Company. When creating Thailand Law Center it was our preference not to give 51% ownership of the company to Thai citizens.

Thailand Foundation

Thailand Foundations are used for very generous donors to create a vehicle for dispersing charity to great causes. These entities are well received by the Thailand government and our lawyers will diligently take you through the steps of creating a Thailand foundation for your generous causes.

Thai limited Partnership

Thailand Limited Partnerships are a used often by foreigners wanting to start businesses in Thailand. The partnership divides liability where one partners has limited liability from any debts or taxes while the other partner has unlimited liability. This type of company has to be registered in Thailand and our business lawyers routinely create Thai limited partnerships.

Business Visa

Business Visas are obtained for those seeking to conduct business for an extended period of time. The paperwork involved is lengthy and clients who desire professional advice and the creating of proper documentation come to us for our extensive visa experience.

Work Permit

Work permits in Thailand an extremely important due to the fact that working without a proper work permit is a serious crime. Clients needing advice and a legal team with the knowledge and experience to help in obtaining a work permit come to us. We know the process extremely well and work closely with government officials to obtain work permits for our clients quickly.

Commercial Business & Contracts

Starting a company in Thailand is only the beginning of a long road to having a thriving business. When it comes to negotiating contracts you must have complete control of the situation and a law firm not only experienced but clever enough to see opportunities that will greatly enhance their client’s business plan.

Thailand Law Center is fully committed to all aspects of Commercial Business to make sure our clients have every advantage possible. We routinely negotiate Commercial contracts, Joint ventures, Distribution & Franchise agreements, Licensing agreements, Management contracts and more. We can also help clients with offshore companies, dept collections, employment disputes and licensing of factories, warehouses, schools, restaurants and every other aspect of Commercial Business Law.

Contracts

Contract laws and issues can be very particular as well as costly to those without proper protection and guidance. Creating a contract to solidly protect our client’s interests is a big part of our service to individuals and businesses. Our vast experience in this area of the law gives our clients security and assurances that they are effectively represented.

Contracts of all kinds in Thailand have to be authored and meticulously revised to ultimately protect a client’s interests. We have a long history with creating contracts in Thailand. We understand the language barrier for many foreigners in Thailand causes them to enter into a contract that is not to their best advantage. Our lawyers know contract law and have years of experience protecting our clients rights through contracts giving them the best possible advantages.

Commercial Contracts

Commercial contracts are an ongoing part of business transactions and every client needs their interests protected and every possible advantage negotiated into a commercial contract. We have a long history in commercial contracts in many industries for domestic and international transactions. Our clients demand the best advantages and protections in their commercial contracts and we deliver our expert advice throughout the process of creating and implementing commercial contracts.

Management Contracts

Management contracts are a vital tool for business owners and investors to control their interests. Thailand has many industries and management contracts for hotels, manufactures, retail stores and more are common but need to be orchestrated by professionals with expert knowledge in business law. Our lawyers possess immense experience and knowledge in management contacts for all industries.

Joint Ventures

Joint ventures are a key way investors create growth in business and the most important aspect of a joint venture is the contractual agreements between all parties. Investors require the best possible advantages in any contract and our law firm has built a long reputation on providing expert knowledge and skillful authoring of contracts that protect our client’s interests.

Licensing Agreements

Licensing agreements encompass many industries and can have a very diverse set of variants and stipulations. Our firm understands the complexity of licensing agreements and their importance in all industries. Our clients have the added security in negotiating the best possible advantages in any licensing agreement. The we see the most positive long term results with licensing agreements that create a win, win situation for all parties to the agreement.

Distribution Agreements

Distribution agreements are an essential part of manufacturing and distributing goods worldwide. Business owners and investors need the best law firm in their corner through the process of creating their distribution agreements. Our law firm has expert lawyers in the field of distribution agreements and a long history of real world experience. The domestic and International aspects of today’s distribution system are complex and clients need a law firm dedicated to their interest with a far reaching insight in all aspects of distribution.

Franchise Agreements

Franchise agreements are the heart of the franchise industry that is designed to sell goods and service worldwide. Clients need far reaching franchise agreements designed to skillfully protect their interests worldwide and through many future transactions. We have lawyers expertly experienced in franchise law, contract drafting, license agreements and all other areas of International franchises.  Franchise agreements is another area where creating a win, win agreement for all parties involved produces the best long term results.

Offshore Companies and Accounts