An offshore company refers to a company which is established in a jurisdiction outside of its primary location of operations or where the company’s principal investors inhabit.
There are several advantages of setting up a company in Thailand, find out the reasons why many foreign entrepreneurs opt for this option.
What Is An Offshore Company?
An offshore company is a company which is set up in a different nation from the stakeholders’ country of residence. Typically, an offshore company is not meant to carry out any economic operation in that specific country.
For instance, suppose a company is operating in the Middle East. Establishing a legal company structure in Thailand while maintaining its operation in the Middle East and at the same time, carrying out business operations in countries other than Thailand would allow the company to enjoy benefits provided by Thailand.
Similar to any other form of business, offshore companies will be governed by the regulations of the jurisdictions where they are founded, which permit the company to carry out its business operations legally. An offshore corporation does not have to be established in a tax haven nation. It can be set up in a country with high rates of corporate tax.
Benefits of Establishing an Offshore Company in Thailand
The key benefits of setting up an offshore company in Thailand include:
- Obtain tax benefits: The main reason why most entrepreneurs want to set up an offshore corporation is to take advantage of the tax benefit in Thailand, which will only be accessible once they set up a business in an offshore jurisdiction. An offshore company in Thailand helps lessen the business owners’ tax burden, especially if they registered with BOI.
- Significantly reduced legal liabilities: The directors’ legal obligations are decreased to a great extent. Moreover, the accounting functions can easily be handled with competent virtual services.
- Protect the company’s asset: An offshore company which is formed in a reputable and economically stable jurisdiction like Thailand provides the company its much-needed business and asset protection, including intellectual property protection, protection against lawsuits, and preservation of wealth from excessive taxation, such as probate.
- Secure valuable opportunities: Thailand is well-recognized for being one of the fastest-growing countries in the Southeast Asia region, offering plenty of business opportunities. For instance, establishing an offshore company would allow the business owners to invest and trade in foreign markets and filling the gap in the local market by offering comprehensive solutions.
- Simple and straightforward business set-up: Ranked as the 21st easiest country for doing business by the World Bank, Thailand allows entrepreneurs to establish their business in the country quickly and easily. Besides, the maintenance cost in Thailand is low compared to other nations.
Types of Business Entities Available in Thailand
The most popular business structure in Thailand is the limited liability company, which only requires at least three shareholders and one promoter. Other forms of business entities available in Thailand are as follows:
- Thai public limited company
- Thai limited partnership
- Thai BOI company
- Amity Treaty LLC
- Branch office
- Representative office
- Regional operating headquarter
- Thailand foundation
Essential Steps For Setting Up an Offshore Company in Thailand
To start an offshore company in a developed market like Thailand, business owners would need to do the following steps:
- Prepare sufficient capital: Business owners should prepare a considerable capital of at least $100,000 to invest. For American entrepreneurs, they can work with the Amity Treaty, which permits US citizens to own full ownership of a Thai company.
- Get the paperwork right: Business owners need to perform some amount of legal formalities, especially when they want to start a Thai corporation.
- Learn the Thai culture: Entrepreneurs should take up a few classes to learn the basics of the Thai language while making the business mobile.
- Register the company: The company registration process takes more or less a few weeks to complete, depending on the complexity of the business.
Seeking Expert Help From Reputable Thailand Company Registration Firm
The process of company registration can be challenging, but with the right guidance, the entire ordeal can become less complicated. Seeking professional advice from a competent Thailand company registration service provider allows you to experience a smooth and legally compliant business set-up.