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How to Register a Company in Thailand with a Virtual Office?
25/04/2024
Registered company addresses are a valuable option for investors or entrepreneurs who are looking to register a company in Thailand. Registered addresses are used for many reasons, such as company registration, tax purposes, and official correspondence and remove the burden of needing a physical office address straight away.
In this blog post we will explore virtual offices and how they can help companies looking to get started in Thailand.
Key points
- Virtual Offices can be used as the registered address for company registration in Thailand.
- Virtual Offices are a useful option for startups, freelancers, or companies looking to get started quickly in Thailand and reduce the costs associated with having to find and maintain a physical office space.
- Virtual office service providers generally do not allow clients to register their business with the Social Security Office and VAT using their address.
- Certain business activities may not be permitted by the Virtual Office provider, meaning business licences cannot be obtained.
What is a Virtual Office?
A virtual office refers to a service that provides office and address services that allow businesses to operate in Thailand without having to have a physical office address of their own. Virtual Offices also provide a range of business functions such as secretarial service, mail forwarding services and even coworking/office spaces.
A virtual office is a flexible workplace solution that enables companies to maintain a professional business presence and access customary office services, without requiring actual office space of their own.
What Type of Business Would Benefit from a Virtual Office?
Virtual Offices are a useful option for startups, freelancers, or companies looking to get started quickly in Thailand and potentially reduce the costs associated with having to find and maintain a physical office space.
Virtual offices offer a cost-effective, flexible, and professional solution for startups, freelancers, and businesses seeking to optimize their operations, enhance their image, and quickly and efficiently start their business operations in Thailand.
Virtual Offices can also be used as the address listed by businesses for company, tax, SSO and VAT registration procedures for companies in Thailand.
What services does a Virtual Office Typically Offer?
A virtual office typically offers the following services:
Mailing Address
A virtual office provides companies with a business address that can be used to receive mail and deliveries. This gives companies a physical presence without needing full office space.
It is important to note that virtual offices cannot generally be used for Tax, SSO and VAT registration unless a dedicated and closed off office space is being used by the company within the virtual offices address.
Mail Handling
Virtual offices usually handle mail, including receiving, scanning, forwarding, etc. Some virtual offices offer personalized mail handling, responding and forwarding based on the requirements and instructions of the client.
Phone Services
Companies use virtual office phone numbers that will be redirected to offsite phones. Live or automated phone answering is typically included.
Meeting Rooms & Workspace
On-demand, hourly booking for meeting rooms and workspace is often provided. Some feature business equipment like printers and computers. It’s useful for business meetings or when remote workers need temporary desk space.
Admin Support
Extra services like call answering by a receptionist or professional personal assistant are available for hire.
What are the Advantages of a Virtual Office?
Virtual offices offer a reliable infrastructure without the traditional overhead costs, offering potentially significant savings for companies and/or entrepreneurs looking to get started in Thailand.
Cost Savings
One of the primary advantages is the significant cost savings associated with not having a physical office. Rent, utilities, maintenance, and other overhead expenses can be substantial. Virtual offices allow businesses to allocate resources more efficiently and invest in core operations or expansion rather than fixed infrastructure.
Flexibility
For startups and freelancers, the flexibility offered by virtual offices is an important asset. Typically, such entities may not need a full-time office space, especially in the early stages of their business when the size of the team might be small and everything is just getting started. Virtual offices provide the flexibility to scale up or down as needed without the constraints of a traditional lease.
Professional Image
A virtual office enables startups and freelancers to establish a professional image by using a prestigious business address and phone services. This can be important in building credibility with clients and partners.
What are the Disadvantages of a Virtual Office?
In Thailand, there are regulations in place that limit the usage of virtual offices. While companies can use a virtual office when registering with the Ministry of Commerce, other government agencies do not facilitate the use of such services.
For example, as soon as the company needs to hire staff, they must register the company with the Social Security Office (SSO) which in practice restricts the use of virtual offices.
As part of the registration process for the SSO, companies will need to provide a picture of their physical office. Typically, companies will be required to submit pictures of the company sign being displayed outside the office location, as well as pictures inside the office. Furthermore, the SSO could choose to inspect the location to ensure the company has a real office and employees. Therefore, a virtual office would not be able to support this process as this criteria could not be satisfied.
Furthermore, much like for registering with the SSO, VAT registration will also require a proper office location, and pictures will again need to be provided. Another important consideration is that if the company has hired foreign employees they will need to take pictures in front of the company sign outside the office, and in the office with Thai employees will also need to be present.
If you do not have a proper office, it could be problematic and it is likely that companies using a virtual office when applying will be rejected.
One possible solution is to engage a reputable virtual office service provider with different services available to clients. Firstly, while undertaking the initial company registration process with the Ministry of Commerce, a low-cost company registration package would be suitable. Then when the company needs to register for SSO and VAT, the service provider will be able to move your company to a dedicated closed office space within their premises. This dedicated office space will be a separate office unit closed off from the rest of the area. Such a closed office space will allow the company to display their company sign on the door and satisfy the criteria of the relevant authorities.
While Virtual Offices are a cost effective solution, additional costs for extra required services may cause the monthly fees to significantly increase. For example, Virtual Office providers may ask for extra fees for services such as VAT registration or work permit support.
There may also be restrictions in obtaining business licences or undertaking certain business activities due to more stringent requirements by regulatory authorities or restrictions imposed on tenants from the service provider.
How can Belaws help?
For more information about the use of virtual offices in Thailand, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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Up to 1 hour
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Legal consultation can be conducted in English, French or Thai
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Frequently asked questions
Can I register a company in Thailand with a virtual office address?
Yes, you can use a virtual office address to register your company with the Ministry of Commerce in Thailand. However, there are limitations.
For what government registrations can’t I use a virtual office address?
You cannot use a virtual office address to register with the Social Security Office (SSO) or for VAT purposes. These registrations require a physical office space.
What are some disadvantages of using a virtual office to register a company in Thailand?
There are limitations on the types of business activities permitted and obtaining business licenses with a virtual office address. Additionally, registering with the SSO and VAT requires a physical office space to meet government regulations.
How can I get around the limitations of using a virtual office for SSO and VAT registration?
Some virtual office providers offer solutions like providing a dedicated closed office space within their premises to meet registration requirements.
What are the benefits of using a virtual office to register a company in Thailand?
Virtual offices offer a cost-effective solution with a professional business address and phone services, ideal for startups, freelancers, or companies looking to reduce costs.
How to register a company in Thailand with a virtual office for free?
Unfortunately, registering a company and using a virtual office service typically incur fees. Their are low-cost company registration packages, but virtual office services and government registration fees would still apply.
Can I register a BOI company for sale in Thailand with a virtual office?
The Board of Investment (BOI) offers incentives for certain businesses. While some BOI company registration details might differ, the article suggests a virtual office address could be suitable for the initial Ministry of Commerce registration. However, BOI requirements might involve a physical office space later. It’s best to consult with the BOI for specific regulations.
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