What are the procedures for formation of a limited company?
A limited company can be formed by seven promoters, one of who can reserve the company’s name. The company is required to file a Memorandum of Association with the Department of Business Development and subsequently subscribe the shares. Once the shares have been fully subscribed, a statutory meeting is then called to approve the Articles of Association, to elect the Board of Directors and to appoint an auditor. The minimum of 25 percent of the par value of each subscribed share must also be paid.

Within three months after the date of the Statutory Meeting, the directors must apply for the company registration. The Limited Company is then ultimately established after filing a series of corporate documents with the Department. An ordinary meeting of shareholders must be held within six months after the registration of the company and subsequently at least once in every 12 months. The incorporation process should normally takes around four to five weeks.

The Memorandum registration fee is 50 Baht per Baht 100,000 of registered capital, but not less than Baht 500 and not exceeding Baht 25,000. As for Company Registration fees, 500 baht per 100,000 baht is applied, but not less than Baht 5,000 and not exceeding Baht 250,000.