The Thai VAT system is similar to the European one. If you are expecting an annual turnover of more than one million Baht or you plan to apply for a work permit then the VAT registration is required according to the Thai tax act. Furthermore the VAT registration is a prerequisite for all of the following points.
Import and export licenses
Firms which import goods into Thailand or export goods abroad are required to apply for a license for this business activity. The same principle applies as well for non-material goods (for example software) or services produced in Thailand and sold abroad. In this case only a supplement must be made to the VAT registration but no license is required. Special rules apply for the import of food and alcoholic beverages, which we are more than happy to explain to you in detail according to your individual needs (please see corresponding paragraph).
Licenses for hotels and restaurant businesses
In General every restaurant business requires an operating license. A hotel requires a license for room rental and a restaurant requires one for food and beverages. These licenses differ considerably depending on whether local alcohol or alcohol from abroad is served and if a business sells cigarettes.
It is common that the same business is required to apply for different licenses depending on what the business offers and sells.
Bars, discotheques and night clubs and similar businesses which have restricted operating hours are required to seek individual permission and are restricted to areas of location.
Licenses for factories
If a production site employs more than seven employees or the machinery exceeds a certain level of performance, such a business counts as a factory and is required to be registered as such. There are gradations depending on the number of employees and the total level of performance of the production machinery.
There are also other applicable regulations for factories such as the situation in case of wastewater, noise and odour emissions.
Licenses for nursing homes
In order for medical facilities such as beauty clinics, nursing homes or dental clinics to be approved they are required to employ a Thai licensed physician fully or part time. The same applies to veterinary facilities, which not only shelter but also provide medical treatment for animals.
Licenses for food production
A company, which produces food in Thailand, is required to have an approved license from the Thai FDA (Food and Drug Administration). Every single product is required to have its own product number. This also applies for imported foods, which are resold in the local market, and for the production of alcoholic beverages.
Licenses for sale of imported merchandise
Other goods, which have not been mentioned, also require a license from the FDA if they were imported. This includes cosmetic products, medical and cosmetic devices, as well as devices for everyday use such as a kitchen appliance. Medications of all kinds are an exception here as they have their own special approval process.
Approval of foundations
A foundation must be established for the public interest and not an individual’s profit. For the establishment there must be at least three founding members of which one may be foreign in the position of the second managing director and who is entitled to a work permit. The timeframe from establishment until registration is roughly one year.
Development of agreements
All agreements made between firms and customers should be made according to the given Thai law. We will translate such agreements for you from Thai to the language of your choosing, or from the language of your choosing to Thai. These agreements could include agreements with shareholders, loan agreements for firm management and confidential agreements with clients.
Registration of a brand or patent
Brand and trademarks may be registered at the Thai Department of Intellectual Property. Basically whoever comes first gets served first. After registration the term will be legally protected in Thailand. Of course details regarding patents can only be discussed in a personal consultation. In general we can assist in registrations for Thailand only.