What are the features of registering a company with share capital of 5 million baht or more.
First, such a company will no longer be classified as a small or medium-sized enterprise (SME), and corporate income tax will be charged at the standard rate of 20 percent, rather than the progressive rate applicable to SMEs.
Second, during the registration process, the Department of Business Development (DBD) will require proof that the share capital exceeding 5 million baht has been paid.
For example, when registering a company with share capital of 8 million baht, the procedure may look as follows.
Registration of a company with share capital of 5 million baht.
Opening a corporate bank account.
Depositing 3 million baht into the company’s account.
Increasing the share capital to 8 million baht by submitting the company’s bank statement to the DBD as proof.
Why is such a level of capital required. It may be related to the type of business activity, licensing requirements, or the need to employ four foreign employees, based on the requirement of 2 million baht per foreign employee.
Author: Alexandra Agapitova.
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