7 Must-Know Questions to Start a Company

7 Frequently Asked Questions: What Do You Need to Know to Start a Company?

1. How Many Types of Legal Entities are There?

Legal entities under the Civil and Commercial Code can be categorised into five types:

Limited Company: This is the most popular business structure, suitable for medium to large businesses. Shareholders are liable only up to the value of their shares. It is highly credible in the eyes of customers and partners, but the establishment process is more complex and has higher costs compared to other forms.

Limited Partnership: Suitable for small to medium-sized businesses, this structure includes two types of partners: those with limited liability and those with unlimited liability. It offers greater flexibility in management compared to a limited company.

Registered Ordinary Partnership: Similar to a limited partnership, but all partners have unlimited liability. This form is suitable for small businesses where partners trust each other. The advantages are a simpler establishment process and lower costs.

Association: A group of individuals organised to carry out non-profit activities, with objectives to promote education, sports, religion, culture, or other public benefits.

Foundation: Similar to an association, but it is established by allocating a specific amount of assets at the beginning to pursue non-profit objectives.

2. How Much Does It Cost to Start a Company?

Initially, the law stipulates that the minimum registered capital for a limited company starts at 15 baht, excluding additional registration fees. However, this amount may not be practical as it can reflect a lack of financial readiness and may impact the company’s credibility in the eyes of customers, partners, and financial institutions. Generally, if you want to start a company, you’ll only be registered if you have a capital ranging from 100,000 to 1,000,000 baht.

3. What Are the Steps for Registering a Company?

Reserve the Company Name: Visit the Department of Business Development’s website to check that your desired name is not already taken by another company. Then, reserve the name online. The reserved name will be valid for 30 days from the date of reservation.

Register the Memorandum of Association: Prepare the Memorandum of Association, which includes detailed information about the company, and submit it for registration at the Partnership and Company Registration Office.

Submit the Application for Company Registration: Submit the company registration application along with all required documents, such as the registration form (Form Bor.Jor.3) and the company’s articles of association, at the Partnership and Company Registration Office.

4. What are the Documents Required to Start a Company

Copies of the ID cards and house registrations of the founders.

Certificate of Business Registration (if the business is already registered).

Documents showing registered capital, such as receipts or bank deposit slips.

Additional documents, depending on the type of legal entity.

5.Is It Necessary to Hire Employees?

It depends on the discretion of the business owner, who should consider several factors, such as the size and type of the business, the workload, the required skills and expertise, the budget, etc.

6. What are the Advantages of Starting a Company?

Builds Credibility: Helps the company present a formal and professional image, reflecting its commitment and seriousness in doing business.

Increased Funding Opportunities: Whether it’s obtaining loans from financial institutions, raising funds from investors, or accessing government support programs, registered companies are more likely to be considered for credit than personal businesses.

Clearly Separates Personal and Business Accounts: Makes it easier to manage and track business performance while reducing personal financial risk.

Attracts Potential Talent: A credible image makes the company more appealing to potential employees, who are more likely to want to work with a reputable business.

7. How to Choose the Best Office Location?

Convenient Transportation: Close to public transportation systems like BTS or MRT.

Located in Business Districts: Areas such as Ploenchit, Sam Yan, Silom, or Asoke are prime locations that can enhance the business’s image.

Scalability: Ensure there is space for future expansion, whether it’s additional space within the same building or options to lease more area as the business grows.

For new business owners looking for an office for rent in prime city locations, close to both the BTS and expressways, and with ample parking, JustCo’s ready-to-use offices are the perfect solution! We offer a variety of office types to suit your needs, from hot desks and small offices to large offices, all equipped with essential amenities such as high-speed internet, meeting rooms, complimentary beverages and snacks, and printing services. This allows you to take your first step in starting a company with confidence. Our offices can be easily expanded to accommodate the growth of your organisation. If you’re interested in our services, you can register on our website to schedule a visit.