Step 1: Reservation of corporate name:
The reserved name of the business should not be similar to any other companies or business organizations. The business should use such a name that is available and is in accordance with the guidelines and rules framed under the authority of the Business Development Office. It is recommended to have a clear understanding of the regulations of the Ministry Of Commerce of Thailand.
Step 2: Filing of Association Memorandum:
In this step, a Memorandum of an association has to be filled at the Business Development Office. This action must contain the registered name of the company, the territory of the business, location of the company, business objectives, the amount of capital invested behind the business, along with the name of the promoters.
Furthermore, the information of capital investment must include the par value and the number of shares as well. In addition, certain subjects have to be issued officially such as the authorized capital, the formation step, the payment structure, etc.
Step 3: Summon for a Statutory meeting:
In this step, the entrepreneur needs to define the structure of the business share. Once done, a statutory meeting will be arranged. In this meeting, the bylaws and the incorporation articles will be approved by an appointed auditor under the Board of Directors. According to the regulation of the Board of Directors, 25 percent par value of each and every subscribed share must be paid.
Step 4: Registration:
After completion of the statutory meeting, the next step will be to register the company. Within three months after the date of the statutory meeting, the directors will have to submit the technical and administrative application, on the process of registration. The company registration fee is decided by multiplying the registered capital with 500 baht upon 100,000 baht. The limit of a maximum fee is 250,000 baht and minimum fee is 5,000 baht.
Step 5: Tax Registration:
The legalization of business must include the liabilities for income tax department which obtains a definite tax ID card. The company must obtain the Tax ID from the Revenue Department within the duration of 60 days from the incorporation or initial day of the business operation. Moreover, according to the regulation, when a business operator cross the boundary of 1,800,000 baht per annum in product sales, the operator should register for VAT within 30 days of reaching the limit.