What entrepreneurs need to do after company registration

What entrepreneurs need to do after company registration

Opening a Company Bank Account

After registering the company, the business owner must open a bank account in the company's name to be used as the main account for depositing and withdrawing funds from the business transactions. It is important not to use a personal account because it will not reflect the true financial performance of the business and can make it difficult to control cash flow. This could lead to credibility issues if external parties, such as banks or the Revenue Department, review the documents. Moreover, once the company is registered, the account must be opened within 1 month (subject to the conditions of each bank) from the date of company establishment. If the account is not opened within this period, a new certificate of incorporation will be required.

Social Security Registration

Currently, once a business owner has registered as a legal entity with the Department of Business Development, they will be automatically registered as an employer with the Social Security Office, Ministry of Labour. When the business hires employees, starting from 1 person onwards, and pays salaries, the business must register the employees for social security within 30 days from the start of employment at theSocial Security Office

When new employees are hired, the business must register them within 30 days.

If an employee resigns, the business must notify the resignation by the 15th of the following month.

Every month, the business must submit the social security contributions deducted from the employees' salaries, along with the employer's contribution, to the Social Security Office by the 15th of the following month.

Value Added Tax (VAT) Registration

In fact, the law does not require all businesses to register for VAT, but if a business has annual revenue exceeding 1.8 million baht and is not in an exempt industry, VAT registration becomes mandatory. Normally, businesses are required by law to register for VAT within 30 days of exceeding 1.8 million baht in business income. After registration, the business must issue accurate tax invoices, ensure that all documentation is correct and complete, and file VAT returns with the Revenue Department monthly from the date of registration. Even if there are no transactions in some months, VAT returns must still be filed on time.

Business Expense Documentation

For business expenses, all purchases should be made in the company's name and be documented with receipts/invoices or cash bills that include the name and address of the seller, as well as the company's name. This is essential to use as evidence for company expenses and for deducting costs when filing taxes. If the documentation does not meet these requirements, the expenses cannot be claimed as tax deductions. Typical expenses include cost of goods sold, such as purchase costs, customs duties, fees, transportation costs, administrative expenses, as well as financial and tax costs.

Withholding Tax

Withholding tax is a form of tax that is deducted immediately after a transaction and then remitted to the Revenue Department. In addition to receiving receipts/invoices from the recipient, the business, as the payer, must withhold a portion of the payment as withholding tax according to the rates prescribed by law. The rates for withholding tax vary depending on the type of payment being made. Here are the basic withholding tax rates:

Prepare Accounting and Tax Documents

Initially, after registering a company, business owners may gather all income and expense documents of the business, such as receipts, tax invoices, and withholding tax certificates, to summarize the information and file the taxes themselves. Then, the owner can send the records to the accounting office to finalize the financial statements and submit the related taxes after the fiscal year ends. Alternatively, businesses may choose to hire an accounting office to record the accounts and submit taxes monthly (monthly accounting service).