Registered capital is the total financial responsibility of the shareholders to the company. Investment may be made with either cash or non-cash assets. Note that non-cash assets need to properly appraised. Each shareholder must pay into the company a minimum of 25% of the par value of their shares.
This amount is commonly referred to as the company's 'paid up' registered capital. It is important to note that, despite the fact each shareholder is only required to pay in 25% of the shares' par value upon registration, the potential liability of the shareholder with regard to the companies activities remains 100% of the shares' par value. This means the shareholder, at some future date, could potentially be required by a court to pay into the company the remaining 75% if the company had to comply with the judgment of a lawsuit.
What is the Minimum Capital Required to set up a Company Limited?
Generally speaking there is no minimum registered capital requirement to set up a Company Limited.
How is a company defined as a foreign company?
What are the Minimum Registered Capital Requirements for a Foreign Company?
If the company engages in activities specified in the Foreign Business Act, its minimum registered capital is 25% of the company's average per year expenses for its first three years of operation or 3 million baht, whichever is the greater.
If the company does not engage in activities specified in the Foreign Business Act, its minimum registered capital would need to be 2 million baht.
Note: these figures refer to 'fully paid up' capital (100%), rather than 'paid up' capital (25%).
What are the Minimum Registered Capital Requirements for a Company that intends to employ Foreigners?
The minimum registered capital requirement for a company that intends to obtain work permits for foreign staff is 2 million baht for a single foreign employee. If the company requires further foreign staff, an additional 2 million baht is required for each employee. The law normally limits companies to a maximum of ten foreign staff (certain exceptions do apply to this rule).