LIMITED THAI COMPANIES IN THAILAND

One might consider opening a company in Thailand for a few different reasons​, first - you are looking to start a business in Thailand and you need the company vehicle to apply for the appropriate visa (Non Immigrant Business Visa) and permit (Work Permit) in order to legally stay and work in Thailand or, second - you wish to stay long term in Thailand but, you have already exhausted and/or explored other long term visa options and a Business (Non-B) Visa seems like the only remaining option or, third - you're contemplating a property purchase in Thailand and you have been advised by a lawyer, a seller, a developer or an agent, that a company would be the easiest vehicle for you in which to secure your purchase. Let's explore this in greater detail below:

 

What is a Limited Thai (Co Ltd) Trading / Non Trading Company?

Foreigners are often misinformed when trying to decipher differences between a trading and non trading entity (limited Thai company) in Thailand and do not fully understand, nor is it explained to them properly, that all limited companies created in Thailand do require some element of "trading" whether you're own opinion, or understanding of that company, is that it does trade (does some daily/weekly/monthly accounting activities) or does not trade (does not do any daily/weekly/monthly accounting activities)! When you open a trading entity for any purpose in Thailand you are always required to do the following a) submit an end-of-year balance sheet and audit each and every year that the company remains open and b) ensure that the company reaches profitability within 3 years of opening the company. Why is this necessary? The Department of Business Development (DBD), where the company was created and any changes to that company are lodged and approved, "reserves the right" to close ANY company that a) has not submitted an end-of-year balance sheet and audit for 3 consecutive years and/or b) does not reach profitability within 3 years of opening the company! Importantly, your Work Permit may not be renewed (upon expiry each year) if the company has been running at a loss for 2 consecutive years prior to renewal of that Work Permit.

Before you panic..! 'reserves the right' does not necessarily mean they (DBD) will definitely close your company down but, it does mean that they (DBD), maintain the option to do so should they (DBD) wish to exercise it!

A trading, or non trading, entity (limited Thai company) must abide by the very same accounting and tax laws just like any other Thai limited company and more information about accounting in Thailand can be found on the ACCOUNTING page of this website.

MORE INFO COMING SOON..!

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Koh Samui. Surat Thani

THAILAND. 84320

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