Limited Companies
There are three kinds of limited companies, as follows:
Private Limited Company
The most popular form of business organization among foreign investors is the private limited company. Private limited companies require a minimum of seven promoters and must file a memorandum of association, convene a statutory meeting, register the company, and obtain a company income tax identity card. They must also follow accounting procedures specified in the Civil and Commercial code, the Revenue Code and the Accounts Act. A balance sheet must be prepared once a year and filed with the Department of Revenue and Commercial Registration. In addition, companies are required to withhold income tax from the salary of all regular employees. A representative office may also be established to engage in limited "non-trading" activities, such as storing goods or services in Thailand for its head office or inspecting and controlling the quality and quantity of goods which its head office purchases in Thailand. A regional office of a multinational corporation may be established to coordinate and direct the operation of branches operating in the region on behalf of its head office, and must not receive income or have the authority to negotiate business with persons or legal entities in Thailand. Application for establishment of a representative office or a regional office must be submitted to the Department of Commercial Registration.