An SPV, a special purpose vehicle is, as its name suggests, a company incorporated for the purpose of accomplishing a specific business goal, or completing a certain business project. It is possible to open an SPV company in Thailand and structure it to meet certain business goals.
Our Thailand company formation specialists assist investors who wish to open a special purpose vehicle. With our help, structuring and incorporating this business form will be streamlined for local and foreign investors alike.
| Quick Facts | |
|---|---|
| SPV uses in Thailand | Securitization, asset transfer, risk sharing |
| General governing law | The Public Limited Companies Act, the Commercial Code etc. |
| Special legal requirements for SPVs | Those that apply on a case-by-case basis, depending on the specific activities of the SPV. |
| Foreign ownership | As per the Foreign Business Act. A foreign business license may be required in some cases. |
| SPV legal capacity | The SPV company is a separate legal entity from its founders. |
| Types of companies used as SPVs | Usually the limited liability company |
| Minimum capital | THB 2 million for some foreign-owned entities |
| Minimum number of shareholders | Two |
| Registered address | Must be based in Thailand |
| Incorporation documents | Memorandum and Articles of Association, shareholder documents, etc. |
| Incorporation time | One week or more in some cases |
| Registration authority | The Department of Business Development |
| Corporate tax in Thailand | 0.2 |
| Annual tax compliance | Half-year returns apply and the annual income tax return is filed within 150 days of the tax year’s end. |
| Double tax treaty network | Thailand has signed more than 60 income tax treaties with countries worldwide. |
Table of Contents
What are the main uses of the SPV?
Investors who open an SPV company in Thailand can use it for:
- Financing for certain business projects in Thailand;
- Risk management and minimization;
- Securitization;
- Property investments, and others.
Companies or individual investors interested in receiving more information (and assistance) to open an SPV company in Thailand can reach out to our team for further details on its uses and proper structuring.
The following infographic offers more details:
How is the Thai SPV incorporated?
Following the general guidelines and requirements for company registration in Thailand is mandatory when opening a special purpose vehicle. Because this is a locally registered company, investors follow a set of mandatory steps and the conditions set forth in the Thai company law.
The following steps are needed to open a company in Thailand:
- Choose the business form: most commonly, this will be the limited liability company when investors set up an SPV;
- Prepare for registration: included herein are all the essential steps, from structuring the business, to preparing the capital, to drafting the incorporation documents; this is a step during which our registration agents provide full support;
- Register the business: the legal entity is registered with the Thai authorities; registration fees are paid at this point;
- Licensing and the start of operations: once the business is registered, it can apply for additional permits and licenses (as may be needed), it can employ staff and commence the activities according to its special purpose.
As a Thai registered company, some of the taxes the SPV can be subject to include the following:
- The 20% corporate income tax (in general);
- A lower, 15% tax for small or medium companies (in some cases, based on a calculation of its net taxable profits);
- Value-added tax with a standard rate of 10% (should the company provide goods and services that are subject to this tax);
- Social security contributions for its employees, as well as other applicable taxes.
For investors who wish to open a special purpose vehicle in the country, our accountants in Thailand can provide more in-depth information about how structuring this vehicle can provide important risk reduction benefits, as well as details about how it can prove valuable for asset management and control.
How can our Thai company formation agents assist you?
As a team specializing in all matters concerning company formation, we assist investors throughout all the steps related to company creation. When it comes to structuring and the steps needed to open an SPV in Thailand, we can answer essential questions about the Thai business forms that can be used for its creation, as well as provide representation and assistance when handling the incorporation procedures.
A special purpose vehicle can have multiple uses and, when structured appropriately, it can be a useful tool for reaching certain business goals. If you would like to find out more about how to open a SPV company in Thailand, reach out to our local team.
We assist investors with all matters related to company formation in Thailand. Additionally, our partners offer incorporation solutions in other jurisdictions, such as China, Kazakhstan, or Bahrain, if you are interested in creating a company in these countries.
Contact us today to receive updated details about our services.