If you're thinking about starting a business in Thailand, there's a lot to prepare before you take the first official step. Company registration in Thailand is a key part of that process, and it’s something that needs your full attention. Whether you're a foreigner or a local, registering a company here involves several steps, paperwork, and decisions. While the process is fairly straightforward, knowing what to expect can save you a lot of time and stress.
Thailand is known for its strategic location in Southeast Asia, growing economy, and relatively affordable cost of living. It's a hub for tourism, manufacturing, tech startups, and international trade. Foreign entrepreneurs often choose Thailand to tap into the local market and use it as a base to reach nearby countries.
There are also incentives offered by the Thai government, especially in areas like tech, innovation, and regional headquarters. Still, even with these benefits, setting up a business requires patience, understanding of the local laws, and some flexibility.
Before you do anything, you need to decide what kind of company you want to register. The most common types in Thailand are:
Thai Limited Company
This is the most popular option. It’s similar to a private limited company in other countries. You need at least three shareholders, and at least one of them must be Thai to meet the local shareholding requirements, especially if you're not applying under the Foreign Business Act exemptions.
Representative Office
This is suitable for foreign companies that want to explore the Thai market but don't plan on making sales locally. It can perform non-revenue generating tasks like market research and liaison activities.
Branch Office
A branch office allows foreign companies to conduct business in Thailand directly, but it's subject to the Foreign Business Act and requires proper licenses for certain activities.
The Foreign Business Act (FBA) restricts foreign ownership in certain sectors. This means that foreigners cannot own more than 49% of a company engaged in specific activities unless they obtain a Foreign Business License or operate under a treaty like the U.S.-Thailand Amity Treaty.
In practice, many foreign entrepreneurs work with Thai partners or use legal structures to comply with the FBA. It's important to consult a lawyer before making any commitments.
Name Reservation
First, you’ll need to reserve your company name through the Department of Business Development (DBD). This usually takes one to three days. Make sure your chosen name is unique and follows the naming rules set by the DBD.
Prepare Documents
Next, you’ll prepare documents like the Memorandum of Association, articles of incorporation, and shareholder information. You’ll also need to provide the company’s registered address.
Company Registration
Once your documents are ready, you submit them to the DBD. This step includes paying registration fees and stamping the official paperwork. If everything is correct, your company will be registered within a few business days.
Tax and VAT Registration
If your business earns more than 1.8 million THB per year, you must register for VAT. Even if you’re not required to do so, many companies choose to register early to deal with suppliers and customers who require VAT invoices.
If you're a foreign director or plan to work in your company, you’ll need a work permit. To get that, your company must meet specific capital and employment requirements, such as having 2 million THB in capital and hiring four Thai employees per foreigner.
You’ll also need a visa, typically a Non-Immigrant B Visa, which is tied to your work permit. This process can be time-consuming, so it’s best to begin early and get expert help if needed.
After registration, you’ll need to open a corporate bank account. Banks will ask for company documents, director ID, and sometimes a corporate seal. Some banks may also require the director’s physical presence in Thailand.
Choose a bank with good online banking options and English-speaking staff if you’re not fluent in Thai.
Thai law requires every company to maintain proper accounts and file annual financial statements. You’ll need to hire a licensed accountant, submit monthly VAT and social security reports, and prepare for annual audits.
Failure to comply can lead to fines or worse. So, it’s essential to budget for ongoing accounting services.
Costs vary depending on the company structure and services used. On average, setting up a Thai Limited Company might cost between 30,000 to 100,000 THB. This includes legal fees, document translation, name reservation, registration fees, and more.
Ongoing costs include office rent, staff salaries, accounting, and government fees. If you're a foreigner, add visa and work permit costs as well.
In many cases, yes. Especially if your business falls under the restricted categories of the Foreign Business Act. Some entrepreneurs look for silent Thai shareholders to meet the legal requirement, but this comes with risks. It’s safer to have a genuine business partner or consider applying for a BOI promotion, which can allow full foreign ownership in certain industries.
The Board of Investment (BOI) in Thailand offers incentives to businesses in key sectors like tech, renewable energy, and manufacturing. BOI-promoted companies can benefit from tax exemptions, easier visa and work permit processes, and even 100% foreign ownership in some cases.
However, applying for BOI status involves a lot of paperwork and approval stages. It’s a good option if your business fits their criteria and you’re in it for the long haul.
A few common mistakes to avoid include:
Not doing enough market research
Choosing the wrong business structure
Relying too much on informal advice
Failing to budget for legal and ongoing compliance costs
Using nominee shareholders improperly
Be cautious and double-check everything. Thailand is a great place to do business, but you need to play by the rules.
Understanding Thai business culture can go a long way. Hierarchy matters, and polite communication is expected. Building relationships takes time but is often crucial to success. Avoid being too aggressive or impatient.
Also, don’t underestimate the power of face-to-face meetings. While digital tools are great, showing up in person still carries weight in Thai business circles.
If you have everything prepared, registering a company can take about a week. But if you add time for name reservation, tax registration, work permits, and visas, expect the entire setup process to take one to two months.
Some delays might happen due to paperwork issues, slow approvals, or holidays. Planning ahead helps.
Can I own 100% of my business as a foreigner in Thailand? In some cases, yes. If your business is not in a restricted category or if you apply for BOI promotion, you can own 100%. Otherwise, you’ll need a Thai partner or a foreign business license.
Do I need to live in Thailand to register a company? Not necessarily, but having a local presence makes things easier. Some steps, like opening a bank account, might require you to be physically present.
Is English enough to do business in Thailand? In major cities, many professionals speak English. But for legal and government paperwork, Thai is required. It helps to work with bilingual staff or hire a local law firm.
What industries are open to foreigners? Tourism, export businesses, and tech startups are generally open. Some sectors like agriculture, media, and certain services are restricted unless you meet special conditions.
Do I need an office address to register? Yes, you need a physical address to register your company. Virtual offices may be accepted in some cases but not always for visa or work permit applications.
Registering a company in Thailand is an exciting step, but it’s not something to rush. From choosing the right structure to navigating the legal steps, there’s a lot to handle. Make sure you do your homework, talk to professionals, and stay flexible. If you’re clear on your goals and willing to adapt to the local system, Thailand can be a great place to build and grow your business.