One of the questions that almost everyone hasDo I need to register a business to open my first restaurant?Because we have heard that some things need to be registered and some don't, many people are not sure whether opening a restaurant selling cooked-to-order food in front of their house requires them to register a business or not. We have the answer to clear up your doubts.
To make it a “business”, everything should be done legally.
This article will be based primarily on the law because, in reality, there are many restaurants that are not registered as commercial businesses.But legally, whenever we do business, we must notify the commercial registration to be in compliance with the law. This is a registration to inform that we have started doing business legally and openly, have a proper location and are listed in the Ministry of Commerce's system . There are 2 types of registration: natural persons and juristic persons.
Business registration for individuals
Which is often popularly called“Trade registration”
In the Bangkok areaBusiness registration can be submitted at the Fiscal Policy Office, the Finance Department, Bangkok and all district offices.
In the provincesYou can apply for registration at the municipality or sub-district administrative organization where our shop is located. You must register within 30 days from the date of starting business.
Copy of the national ID card and house registration of the business registrant
In the case of a shop location where the applicant is not the owner of the house, additional documents must be attached, namely a letter of consent to use the premises and a copy of the house registration of the owner of the house where we are requesting to use the premises.
Store location map
Power of attorney (if we do not submit the registration in person)
Copy of the attorney's national ID card
Fee 50 baht
Business registration in the form of a legal entity
Registration in the form of a juristic person is more complicated than in the form of an individual because in legal terms, a juristic person is considered a business separate from an individual and has specific laws, regulations, and responsibilities . The types of establishment of a new business as a juristic person that are popularly registered are 2 types:Limited Company and Limited Partnership
Where to apply for registration of limited companies and limited partnerships? If it is in Bangkok, you must apply at the Department of Business Development or the Ministry of Commerce. In the provinces, you must apply at the provincial commerce office.
Which generally uses the services of an accounting office to do it for them. Therefore, for details of the documents and steps for registering as a juristic person, if anyone wants to know, you can study atDepartment of Business Development website
Differences between registering an individual and a juristic person
Let's take a look at the differences in registration that many people wonder about: how is it different to register as an individual and as a juristic person? Or what are the advantages and disadvantages?
Therefore, if there is a further question as to which type of registration is best, the initial advice is based on the goals of the business being done.If you want to expand and grow your business, registering as a legal entity is more appropriate. However, if you are just doing small business and operating alone and do not want to get involved with anyone, registering as an individual is more suitable.
“Taxes” are the next thing to be careful about.
The follow-up question is, after successfully registering a business, is it necessary to register for VAT? According to the law, businesses with income not exceeding 1,800,000 baht per year do not need to register for VAT.
But whenever the income reaches 1,800,000 baht per year, VAT registration must be filed within 30 days from the date the value of the tax base exceeds 1,800,000 baht per year. In this case, whether it is an individual or a juristic person, the conditions are the same.
In the case of a business registered as an individual, Form Por.Ngor.Dor. 94 must be submitted in the first half of the year and Form Por.Ngor.Dor. 90 in the second half of the year. In the form of a juristic person, it must also be submitted in accordance with the law, which is usually done by an accounting office.
The issue that many people are concerned about is if the income exceeds the legal limit and they do not register for VAT, will they be charged retroactively? Or if they have to pay, can they request a lump sum payment?
The answer is, if your income exceeds 1,800,000 baht per year and you don't file taxes , you'll definitely be fined retroactively.The current auditing system of the Revenue Department has greatly improved its efficiency in auditing. It can conduct detailed audits of various financial transactions. The chances of being found out are high. Therefore, if you know that your income exceeds the limit, do not try to conceal it. It is better to avoid it.
As for the question of whether we can ask the Revenue Department to assess the tax in a lump sum, the answer is:In the VAT system, there is no flat rate tax.
