Sole Proprietorships

|Sole Proprietorships

A sole proprietorship is an unincorporated commercial business which is owned and operated by a single natural person, the proprietor.

Under the law, a person acting as a sole proprietor can engage in almost any lawful type of business with the exception of those businesses which have been otherwise regulated by the government.
The proprietor has unlimited liability for all business transactions in which he engages. He is responsible with all his business and personal assets for all debts and obligations.

Registration of sole proprietorships is conducted at the Revenue Department, where the sole proprietor must acquire a taxpayer number.

A sole proprietor’s income is taxed at the personal income tax rates (progressive rates of 5% to 35%) with exemptions and deductions applicable to all individuals. Furthermore, if the business’ annual income exceeds 1.8 million Baht, the proprietor is required to collect VAT on the sale of goods or provision of services.

The process of registration takes about three to five days.

Foreigners, unless covered under the United States-Thailand Treaty on Amity and Economic Co-operation, are not permitted to operate sole proprietorships.

2018-07-27T14:08:31+00:00
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