What Constitutes 2 Million Baht In Capitalization

[Farfetched]

What does Thailand consider proper capitalization for the start of a new business. surely they don't mean for you to hold 2 million Baht in the bank. For an export company with minimal inventory owned, what would meet the 2 million baht capital requirement for a limited partnership or a corporation?

[dhrobertson]

What does Thailand consider proper capitalization for the start of a new business. surely they don't mean for you to hold 2 million Baht in the bank. For an export company with minimal inventory owned, what would meet the 2 million baht capital requirement for a limited partnership or a corporation?

You need to show share capital of at least 2,000,000 on your balance sheet for each Farang employed in a limited company. That does not necessarily mean that the balance sheet shows that amount of cash at the bank. The balance sheet may very well show other assets such as current debtors, stock, etc and crucially, other debtors such as persons who have been loaned money by the company. If the company has made aloan in this way, it must be formalised and interest payable. This interes6t will of course be subject to corporation tax. I suggest you find a good accountant.......