Is a commercial registration required for small restaurants? It is one of the questions of entrepreneurs and potential SME restaurant entrepreneurs whether opening a restaurant requires registering a commercial registration or not. If adhering to the principles of correctness, when we open a restaurant or conduct any business, we must register a commercial registration in accordance with the law. It is a registration to inform that we have started a business legally and openly, have a proper location and a name in the system of the Ministry of Commerce. There are 2 types of commercial registration: natural persons and juristic persons ▶️ Commercial registration of natural persons For business registration, individual type, or what most people call a commercial registration, in law, the Commercial Registration Act of 1956 stipulates that individual restaurant operators must register a business within 30 days from the date they start operating the restaurant. If the restaurant is located in Bangkok, you can apply for a commercial registration at the district office where the restaurant is located. In the provinces, you can apply at the municipality or sub-district administrative organization where the restaurant is located. There is a commercial registration fee of 50 baht per copy. Once the commercial registration is complete, the commercial registration certificate must be displayed at the office in an open and easily visible location. A signboard with the shop name used for commercial operations must be displayed in front of the shop and branches (if any). Businesses that register as individuals must submit Form Por.Ngor.Dor. 94 in the first half of the year and Form Por.Ngor.Dor. 90 in the second half of the year. As for VAT, entrepreneurs with an income of less than 1,800,000 baht per year do not need to register for VAT, or they can register. However, if everyone has an income exceeding this amount, they must register for VAT. By submitting a VAT registration application (Form Por.Por.01) Documents for business registration (individuals) You can download it at this link. http://www.dbd.go.th/download/downloads/01_tp/form_tp.pdf ▶️ Registration of a commercial entity Or called company registration, it is more complicated than individual commercial registration. Because it must be done in accordance with the Civil and Commercial Code on partnerships, which requires a promoter to establish a company, prepare a memorandum of association, determine the capital to be registered and find investors to buy shares in the company. Determine the share value, such as registered capital of 1 million baht, divided into 10,000 shares, price of 100 baht per share. As for each shareholder, how many shares can be held is up to the agreement. Shops located in Bangkok can apply for registration at the Central Company Registration Office, Department of Business Development, Ministry of Commerce, or the District Commercial Registration Office. As for provinces, they can apply for registration at the Provincial Commercial Registration Office. The company registration fee depends on the amount of registered capital, which is 50 baht for every 100,000 baht, minimum 5,000 baht, and maximum 25,000 baht. Documents for business registration (legal entity) You can download it at this link. http://www.dbd.go.th/news_view.php?nid=369 It doesn't end there! For the registration of a commercial entity ✔️ Must appoint at least one licensed auditor to be an auditor to audit the company's accounts. ✔️ Company directors are responsible for preparing accounts, balance sheets and profit and loss statements every 6 months of the accounting period, with an auditor certifying their accuracy and submitting the balance sheet to the Partnership and Company Registration Office. The profits from doing business must be included in the calculation of corporate income tax. If the loss or profit does not exceed 300,000 baht in a 1-year accounting period, no tax is paid. If more than 300,000 baht but not more than 3 million baht, a 15 percent tax is paid. If the profit exceeds 3 million baht, a 20 percent tax is paid . Summary of the advantages and disadvantages of registering a commercial entity as an individual and as a juristic person
| | Individual | Legal entity
| Advantages | · Easy to set up by one person · Freedom of decision-making · The owner is the sole responsible person · Few legal requirements · Easy to close down the business · Low administrative costs | · A legal entity, separate from the shareholders · Shareholders are liable only for the amount invested in the shares · Can buy, sell or transfer shares to other persons · If a shareholder dies or sells his shares, the company can continue to operate without any obstacles · Reliable, easy to borrow money to expand the business · Pay less tax than individuals
| Disadvantages | · The owner must take on unlimited debts. · Lack of business credibility. · Difficult to obtain funding. · Decisions are made by one person, not careful. · The business may not be long-lasting and not continuous. · Disadvantages in terms of taxes. · Employees have limited advancement. | · Complicated establishment procedures. · High management costs. · Must have at least 3 investors. · Must have detailed accounting. · There are quite a few legal regulations involved. · It is quite difficult to close down the business.
| | Individual | Legal entity
| Advantages | · Easy to set up by one person · Freedom of decision-making · The owner is the sole responsible person · Few legal requirements · Easy to close down the business · Low administrative costs | · A legal entity, separate from the shareholders · Shareholders are liable only for the amount invested in the shares · Can buy, sell or transfer shares to other persons · If a shareholder dies or sells his shares, the company can continue to operate without any obstacles · Reliable, easy to borrow money to expand the business · Pay less tax than individuals
| Disadvantages | · The owner must take on unlimited debts. · Lack of business credibility. · Difficult to obtain funding. · Decisions are made by one person, not careful. · The business may not be long-lasting and not continuous. · Disadvantages in terms of taxes. · Employees have limited advancement. | · Complicated establishment procedures. · High management costs. · Must have at least 3 investors. · Must have detailed accounting. · There are quite a few legal regulations involved. · It is quite difficult to close down the business.
