Expenses for company registration in Thailand

Before taking such a decisive step as a company establishment in Thailand, one has to reply a simple question: what are the purposes and objectives of the company?

The purposes of the registered company may be the following:

• real estate acquisition;

• business establishment (without a foreign staff);

• business establishment (with a foreign staff, which means obtaining a work permit).

It is quite obvious that along with the extension of the company’s fields of activity the expenses on its registration and maintenance are increasing as well.

Company registration for real estate purchase

The cost of registration of such company depends on the announced authorized capital (minimum 1 million Baht). The bigger authorized capital is the more money has to be paid to a lawyer and to state bodies because fees are increasing with each additional million. So how is it possible to determine the sum of authorized capital? The cost of real estate should be commensurable with the authorized capital. The owners of the company should also remember about expenses for the annual accounting services for balance sheets application.

Company registration for business activity (without work permit)

In this case, the expenses will include the cost of company registration (minimal authorized capital is also 1 million Baht), registration in the social security fund and staff employment (Thai employees only), annual balance sheet, monthly payments to the Social security fund for employees, that is 5% of the salary (but not more than 750 Baht), as well as monthly payment of personal income tax from the salary of Thai employees, for those whose salary exceeds 150,000 Baht per year. If the company’s turnover exceeds 1, 8 million Baht per year, the company must be registered as a VAT-payer. In this case, the expenses will be replenished with the cost for registration and payment for accountant services for monthly reports preparation and submission.

Company registration for business activity with the employment of foreigners

This type of company registration is the most expensive and requires the biggest investments. The expenses will include the followings:

1. Company registration with the authorized capital of 2 million baht for each foreign employee.

2. The registration of company in the Social Security Fund and the subsequent employment of four Thais per each foreign employee.

3. Company registration as a VAT-payer.

4. Annual balance report, its cost will depend on turnover.

5. Monthly accounting reports that are required for a VAT payer.

6. Monthly payments to the Social security fund from the each employee’s salary including Thais and foreigners, 5% but not more than 750 Baht.

7. Monthly individual income tax payment from the salaries of foreigners and Thais, if the salary exceeds 150,000 Baht per year.

To the above mentioned expenses the company’s owner should add the cost of work permit, business visa and their annual extension and tax duties payment as well.

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