What is registered capital? Why modern SMEs need to pay attention

Registered capital is the amount of money a company sets as the base of its business, divided into shares with a clearly stated value per share. The figure of 1 million baht is a popular choice among business owners in Chiang Mai and across the country, used to build credibility with trading partners and financial institutions. As for how much cash you need to prepare, the answer is that the law does not require you to deposit 1 million baht in cash with the Department of Business Development, but you must have evidence that the shares were actually paid up in the proportion stated in the memorandum of association.

If you are starting a new business in the North, choosing a firm that specialises in accounting services in Chiang Mai will help you plan your capital structure correctly from day one, to prevent tax and legal problems that could follow later.

Why setting the registered capital matters to your business in 2026

Setting the registered capital is not just a figure on a document; it is a key business strategy, as follows:

  • Building credibility: trading partners and suppliers often check the registered capital before deciding to work with you, to gauge the company's readiness and stability
  • Applying for bank loans: registered capital that suits the size of the business makes it easier for banks to consider a business loan
  • Applying for specialised licences: certain businesses, such as tourism or companies with foreign shareholders, may have a minimum registered capital set by law
  • Winning government or large private-sector contracts: many projects require a company to have registered capital of at least a specified amount before it can bid

If you would like advice on how much your business should register for the best fit and value, our accounting services in Chiang Mai team is ready to give you in-depth guidance so that you step into 2026 with confidence.

Practical steps for handling the registered capital

Once you have decided to set the registered capital at 1 million baht, these are the preparation steps you need to know:

1. Calling up payment for shares

Under the Civil and Commercial Code, for a limited company the shareholders must pay at least 25 percent of the registered capital. This means that if you register 1 million baht, you must have at least 250,000 baht paid in for the shares, to be used in the company's operations.

2. Documenting the payment

You need evidence of the transfer into a bank account opened in the new company's name, which is the key evidence used when filing the registration with the Department of Business Development (DBD).

3. Specialist services

Many people overlook the importance of keeping accounts from day one. Using accounting services in Chiang Mai from the registration stage onwards ensures that the entry for "cash received for shares" is recorded correctly under the 2026 accounting standards, reducing the risk of a later Revenue Department audit.

Common mistakes when setting registered capital

Many SME owners slip up on the following points:

  • Registering capital that is higher than necessary: registering more capital than needed without real cash behind it can create a "receivable for unpaid shares" in the financial statements, which causes tax problems and requires awkward explanations
  • Not paying the money into the company's account: many owners pay company expenses from personal funds instead of through the company account, making the bookkeeping complicated
  • Not preparing complete supporting documents: without clear evidence of payment, the credibility of the financial statements suffers and future borrowing becomes difficult

These mistakes can be prevented by having an experienced accounting adviser check that the documents are correct from the very first day of company registration.

Overview and preparation

Registering a company with capital of 1 million baht in 2026 is an important first step towards success, but what matters more is managing that capital correctly under the law and accounting principles. If you clearly set aside the 25 percent in cash and have a good bookkeeping system, your business can grow seamlessly.

If you are looking for a trusted adviser in the North, the YMTD Accounting Partner team is ready to be the force behind your success, with a complete service covering company registration, tax system setup and professional accounting.

Contact YMTD Accounting Partner Chiang Mai
Tel: 081-542-3019
LINE: @ymtd