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Browse our 7 legal questions about Business Registration in Thailand and the lawyer answers, or ask your own questions for free.
In Chiang Mai, Thailand, business registration is governed by the Civil and Commercial Code of Thailand with oversight by the Department of Business Development (DBD) under the Ministry of Commerce. It involves a complex process for both Thai nationals and foreigners alike, as they need to navigate through several legal requirements, licenses, certifications and various approvals, depending on their specific business category.
Getting a lawyer can simplify the intricate process, particularly for foreigners, as understanding the laws from a non-native perspective can be challenging. A lawyer can advise you on appropriate business structures, handle necessary paperwork, lookout for potential legal issues, and ensure compliance with Thai laws. Moreover, certain businesses with foreign ownership need legal scrutiny to comply with the Foreign Business Act (FBA).
The local laws related to business registration in Chiang Mai involve the Civil and Commercial Code, Foreign Business Act, and several others based on the business type. A critical aspect is the Thai Foreign Business Act which restricts certain types of businesses from complete or partial foreign ownership. Additionally, each business must register for tax purposes under the Revenue Code of Thailand, while certain businesses also require specific licenses such as food or alcohol licenses.
1. Can a foreigner own a business in Chiang Mai, Thailand? Foreigners can own businesses, but it is subjected to restrictions as per the Foreign Business Act. Professional legal advice is recommended to navigate these restrictions. 2. What are the initial steps to start a business in Chiang Mai, Thailand? The initial step is to decide on the appropriate business structure (like a Limited Company, Joint Venture, Branch Office, etc). Then, acquiring a name, developing Memorandum of Association, registering it with DBD, and obtaining relevant licenses follow. 3. Which documents are required in process? While the required documents can vary, the common ones include identification documents, the company's name reservation, Memorandum of Association, application form, and list of shareholders. 4. How long does the process of business registration take? The process can take close to a month or longer, depending on the complexity of the business, required licenses, and timely completion of required paperwork. 5. Is it necessary to have a Thai national as a shareholder or director? For most businesses, Thai nationals should hold a minimum of 51% of the shares. Additionally, the majority of directors should be residents of Thailand, not necessarily Thai nationals.
The Department of Business Development (DBD) is the primary governmental resource for businesses. You can consider English-language websites of DBD and Thailand Board of Investment for gathering knowledge. Apart from this, the One Start One Stop Investment Center(OSOS) helps streamline the process for foreign investors.
If you require legal assistance, identify a reputable lawyer or a law firm specialized in Thai business law. They can guide you through the process with personalized advice. Before proceeding, ensure to have a clear understanding of your business' scope, relevant restrictions, potential legal complexities and costs involved.
