Starting a business in a new country can be exciting but also a bit confusing. If you're thinking about starting a business in Thailand, one of the first steps is understanding the legal process. Company registration in Thailand involves a few steps that are important to follow. While the process is not too complicated, it's essential to understand what’s required before diving in. This article will walk you through the basics and help you understand what you need to do to get your company registered the right way.
Thailand has a growing economy and is considered a popular spot for foreign investors and entrepreneurs. Whether you want to open a small shop, a tech company, or even a consulting firm, registering your business gives it a legal identity. This step helps you open a bank account, get permits, pay taxes, and build trust with clients and partners. Without registration, you won’t be able to do much officially. That’s why it’s so important to do it the right way from the start.
Before you can register a company, you need to decide what type of business you want to start. In Thailand, there are a few common types:
Sole Proprietorship
This is the simplest form of business, run by one person. It's easy to set up but doesn’t offer personal liability protection.
Partnership
There are two main types of partnerships in Thailand—ordinary and limited. An ordinary partnership has all partners equally responsible. In a limited partnership, some partners are only liable up to the amount they invested.
Limited Company
This is the most common type for foreign investors. A limited company in Thailand can be private or public. Most foreign-owned businesses use a private limited company structure.
Before starting the registration process, it’s good to prepare the following:
Company Name Reservation
Choose a unique name that is not already taken. You need to submit it to the Department of Business Development (DBD) for approval.
Minimum Number of Shareholders
A private limited company in Thailand must have at least three shareholders. These can be individuals or companies.
Directors and Registered Address
You need at least one director and a local address for your company. This address must be an actual location and not just a mailbox.
Company Objectives
When you register, you must list your company’s objectives. These should be clear and detailed.
Now let’s look at how the registration process works:
Name Reservation
As mentioned earlier, you need to pick a name and reserve it with the DBD. This step usually takes a couple of days.
Filing the Memorandum of Association
This document includes details like the company name, address, objectives, registered capital, and the names of shareholders. It must be filed within 30 days of name approval.
Statutory Meeting
This meeting is where the company’s rules are confirmed. Shareholders approve the company’s regulations, appoint directors, and decide on the auditor.
Company Registration
After the statutory meeting, the company must be registered with the DBD. This final step makes the company a legal entity.
Tax and VAT Registration
If your company’s income will be more than 1.8 million baht per year, you need to register for VAT. You also need to get a tax ID number from the Revenue Department.
Foreigners can own companies in Thailand, but there are some restrictions. In many cases, foreigners can only own up to 49% of the company. However, some industries allow full foreign ownership, especially if you apply under the Foreign Business Act or through the Board of Investment (BOI).
BOI Promotion
If your business qualifies for BOI promotion, you may get benefits like tax breaks and 100% foreign ownership. Applying for BOI status can take time and requires a detailed proposal.
There is no fixed amount for registered capital, but the usual minimum is 2 million baht for a company with foreign shareholders. If the company wants to hire foreign workers, it usually needs 2 million baht per work permit. For Thai-owned companies, the capital requirement can be lower.
If you want to work in your own company as a foreigner, you will need a work permit. To get this, the company must have a certain amount of capital and employ a minimum number of Thai staff. The usual ratio is four Thai employees per foreign worker.
Once your company is registered, you need to keep proper records. Thai law requires companies to prepare financial statements every year and file them with the DBD. You’ll also need to pay corporate taxes and sometimes monthly VAT returns.
Annual Audit
Every limited company in Thailand must be audited by a certified auditor. The audit report must be submitted along with the annual financial statements.
Many new business owners make simple mistakes that can delay or complicate the registration process. Some forget to check if their company name is available, while others don’t understand the rules around foreign ownership. Some don't have a proper address or try to skip steps like the statutory meeting. Taking shortcuts might seem easier, but it often leads to bigger problems later.
Even though company registration in Thailand is not too hard, it can still be confusing, especially if you don’t speak Thai. That’s why many people hire lawyers or accounting firms to help. These professionals can guide you through the paperwork and make sure everything is done correctly.
Do I need to be in Thailand to register a company?
No, but it helps. Some parts of the process can be done remotely, but you’ll probably need someone local to represent you or help with the documents.
Can I own 100% of my company in Thailand?
Only in some industries or if you get BOI promotion. Otherwise, foreigners are limited to 49% ownership.
How long does the registration process take?
If everything is in order, it can take about one to two weeks. But delays are common if documents are missing or incorrect.
Do I need a Thai partner?
In many cases, yes. If you’re not applying for BOI status or another special permit, you’ll need Thai shareholders to meet the 51% requirement.
Can I use my home address as a registered address?
Sometimes, but it depends on local zoning rules. It’s safer to rent an office or use a legal business address.
Starting a business in Thailand is a realistic goal if you follow the proper steps. While company registration in Thailand might seem like a lot at first, it's actually quite manageable once you understand the process. Make sure you choose the right type of company, follow the legal requirements, and keep your records straight. If you’re unsure, get professional help. With the right preparation, you’ll be running your business in Thailand sooner than you think.