#

Ease of Doing Business in

Thailand

Thailand Download Profile (1735.7KB, pdf)
Region East Asia & Pacific
Income Category Upper middle income
Population 67,959,359
GNI Per Capita (US$) 5,620
City covered Bangkok

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 46 46
0
72.53 71.65 down
0.88
Starting a Business 78 93 up
15
87.01 85.03 up
1.98
Dealing with Construction Permits 42 38 down
4
75.65 75.64 up
0.01
Getting Electricity 37 34 down
3
83.22 83.21 up
0.01
Registering Property 68 67 down
1
68.34 68.20 up
0.14
Getting Credit 82 97 up
15
50.00 45.00 up
5.00
Protecting Minority Investors 27 25 down
2
66.67 66.67
-
Paying Taxes 109 106 down
3
68.68 68.76 down
0.08
Trading across Borders 56 54 down
2
84.10 84.10
-
Enforcing Contracts 51 51
-
64.54 64.54
-
Resolving Insolvency 23 26 up
3
77.08 75.41 up
1.67

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 78

DB 2016 Rank: 93

Change in Rank: up15

DB 2017 DTF (% points): 87.01

DB 2016 DTF (% points): 85.03

Change in DTF (% points): up1.98

Standardized Company
Legal form: Private Limited Liability Company
Paid-in minimum capital requirement: THB 3.8
City: Bangkok
Indicator Thailand East Asia & Pacific OECD high income
Procedure – Men (number) info_outline 5.0 7.0 4.8
Time – Men (days) info_outline 25.5 23.9 8.3
Cost – Men (% of income per capita) info_outline 6.6 19.0 3.1
Procedure – Women (number) info_outline 5.0 7.1 4.8
Time – Women (days) info_outline 25.5 23.9 8.3
Cost – Women (% of income per capita) info_outline 6.6 19.0 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 12.3 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Search and reserve a company name online

    Agency: Department of Business Development, Ministry of Commerce

    Promoters can search and reserve a company name on the Department of Business Development’s Web site (http://www.dbd.go.th/dbdweb_en/main.php?filename=index). The name reservation in person at the Department’s Registrar is no longer available as of 14 January, 2013.
    Less than one day (online procedure) no charge
    2

    Deposit paid-in capital in a bank

    Agency: Bank

    Once the company gets approval for the memorandum and the articles of association, it must hold a statutory meeting. The promoters shall hand over the business to the directors after the meeting. The directors shall thereupon cause the promoters and subscribers to pay in at least 25% of the registered capital.
    1 day no charge
    3

    Obtain a corporate seal

    Agency: Seal maker

    According to the Civil and Commercial Code, a company is not required to have a corporate seal, however, according to Section 1128 of the Civil and Commercial Code, it states that every certificate of shares shall be signed by one of the directors at least, and shall bear the seal of the company. Therefore, In practice, a Thai company usually affixes its corporate seal to other documents. One can get a seal in 2 days if the order is placed urgently and this costs between 400-800 THB.
    2 days between THB 400-800
    4

    Get approval for memorandum of association, apply and pay to register the company as a legal entity (final registration) and obtain TIN

    Agency: Partnerships and Companies Registration Office, Department of Business Development, Ministry of Commerce

    At the Single Point Service Center, entrepreneur can register for social security and register for the Workmen’s Compensation Fund. The Department of Business Development also receives the work regulations and then forwards them to the Office of Labor Protection and Welfare of the Ministry of Labor at the district where the head office of the company is located. Alternatively, an entrepreneur could also register for the work regulations at the Ministry of Labor directly. An employer with 10 or more regular employees must establish written rules and regulations (in Thai) that comply with the amendments of the Labor Protection Act B.E. 2541 on work performance. The regulations must be displayed at the work premises within 15 days of hiring 10 or more employees. When the labor officer receives the work rules, the officer will check whether they comply with the law and it will take around 21 days to receive the feedback from the labor officer. Once there is a revision from the officer, the employer usually posts the work rules.

    Registration of the Company shall be made within 3 months of the day of the statutory meeting. Under the Civil and Commercial Code, Section 1111/1, for establishing the company, the director committee may require memorandum registration and company registration on the same day. If the promoters complete both steps on the same day, the required proceedings involving the memorandum promoters are as follows:

    (1) To have the subscribers of all the shares registered in the company;
    (2) Under Section 1108, to have a statutory meeting to consider any act of company, with all subscribers and all promoters presenting at the meeting and accepting such act in the statutory meeting;
    (3) To have promoters transfer all business to the director committee; and
    (4) To have the directors require every subscriber to pay the amount of shares under Section 1110 paragraph 2, and have such amount be fully paid.
    The required documents for registration of the company which must be signed by the authorized director(s) and affixed with the company's seal (if required) shall include but not limited to the followings:
    (1) Application form;
    (2) Articles of Association;
    (3) List of shareholders;
    (4) New director form signed by each director;
    (5) Declaration of Business Operation form;
    (6) List of company registration;
    (7) Certified copies of the MOA and the Objectives;
    (8) A certified copy of the Notice and Minutes of the Statutory Meeting;
    (9) Confirmation of payment of share capital (at least 25%) by all subscribers;
    (10) Form for company name reservation
    (11) Form of certification of registration of limited company; and
    (12) Map(s) showing the location(s) of the registered office(s) of head office and branch office(s) (if any) of the company.

    The promoters prepare the application for registration of the memorandum of association containing the details specified in procedure 2;
    The first statutory meeting shall still be convened, provided that the notice to summon the first statutory meeting is not required;
    The shareholders must pay at least 25% of the registered capital;
    The promoters and authorized signatory director must sign the applications for registration of memorandum of association and for registration of incorporation, respectively, before Private Limited Companies Registrar, attorney at law, or auditor registered with the Registrar.

    However, if the company has adopted complicated articles of association, the Registrar may take a few days to review the company's articles of association. In such case, the registration of company incorporation may be prolonged for a few days or more.

    Under the Notice of the Director General of Revenue Department dated 11 January 2012, which is effective from 1 February 2012, company’s registration number shall be the same as its tax ID.
    Thus, the company is not further required to obtain taxpayer identification number or card anymore. Employers (with one or more employees) must register their employees for social security and workers’ compensation insurance at the Social Security Office, Ministry of Labor.
    22 days see procedure details
    * 5

    Register for Value Added Tax

    Agency: The Revenue Department

    VAT registration is mandatory for all companies whenever the company revenues hit the threshold of THB 1.8 million. The provision of the Thailand tax code can be found on the Revenue Department’s website: www.rd.go.th.

    The company shall apply the application at Bangkok Area Revenue Office where the company office located and must submit the following documents:
    •01Application for VAT Registration in 3 copies (photocopy not accepted)
    •Rental Contract (affixed with stamp duty) or Letter of Consent from owner of the Building and Household Registration of such Building.
    •Photocopy of I.D. Card, Household Registration of the lessor.
    •Documents showing ownership of the lessor such as sell and purchases contract, transfer of ownership.
    •Map showing the location of the Building.
    •Photograph of the office with signboard name and number of the Building.
    •Certified letter from the Ministry of Commerce (issued within 6 months) together with Articles of Association, regulation and details of the Objective of the company.

    In case the company revenue less than 1.8 million THB, the company shall submit Por.Por.01-1form.

    1 day, simultaneous no charge

    * Takes place simultaneously with previous procedure.