Foreign investors seeking to establish operation in Southeastern Asia have several choices. Most of them will try and make a comparison between the markets they are targeting, but most of all between the countries they can set up their companies in. The information below was gathered in order to offer foreign investors a perspective on the business environments in Singapore and Thailand. This way one can compare how easy it is to open a company in Singapore versus how easy it is to set up a business in Thailand.
The video below shows the differences between opening a company in Singapore and opening a company in Thailand:
What to choose: open a company in Singapore vs. Thailand
In 2015, the World Bank placed Singapore among the easiest countries to do business in and that could sum things up about where it is easier to start a business in. Below, foreign investors will find some information on the company formation procedures in Singapore and Thailand:
- – both company registration processes in Singapore and Thailand will begin with the company name reservations and the submission of the incorporation documents;
- – companies in both countries are required to deposit a share capital;
- – then the licensing and tax registration steps must be completed in both countries.
What foreign investors need to know is that in Singapore the shareholders may deposit any amount they consider as a share capital when opening a company as long as it is sufficient to operate, while in Thailand, even if no minimum amount is required, the shareholder must deposit 25% of the sum upon the incorporation of the company. Also, in Thailand the company’s statutory documents must be approved by the Commercial Register before they are submitted for registration, whereas in Singapore this step is not required. When it comes to the costs of setting up the business, these are relatively the same in Singapore and Thailand.
Benefits for foreign investors in Singapore vs investors in Thailand
It may seem little, but one should know that while the Singapore Commercial Code agrees with the appointment of nominee shareholders, the Thai Business Act does not approve this concept. When it comes to the laws favoring foreign investments, the Singapore government has enabled an impressive number of programs targeting the development of startup companies and several industry-related investment schemes. Thailand also assists foreign investors to set up companies, however the Thai Government imposes certain restriction.
If you want to open a company in Singapore, you can contact our company formation experts who will assist you.