Setting Up a Business in Thailand: Company Registration Guide

Thailand is one of Southeast Asia’s most attractive destinations for business. With

a strong economy, strategic location, and large consumer base, it’s no surprise

that many foreigners choose to establish companies here. But before you get

started, it’s essential to understand the rules around company registration, foreign

ownership, and compliance.

1. Types of Business Entities in Thailand

Foreigners can choose from several structures, but the most common are:

• Thai Limited Company (Co., Ltd.) – the most popular option. Requires at

least 2 shareholders (can include foreigners).

• Partnerships – ordinary or limited partnerships, often used for smaller

businesses but less common for foreigners.

• Branch or Representative Office – allows foreign companies to operate in

Thailand without forming a new entity.

For most entrepreneurs, the Thai limited company offers the best balance of

flexibility and legal protection.

2. Foreign Ownership RulesUnder the Foreign Business Act, foreigners can own up to 49% of a Thai

company, while Thai shareholders must hold at least 51%.

Exceptions include:

• BOI Promotion (Board of Investment) – grants special privileges, including

up to 100% foreign ownership, tax holidays, and work permit support.

• Treaty of Amity (US citizens only) – allows majority foreign ownership for

American investors.

Choosing the right structure depends on your business activity, investment

amount, and eligibility for BOI promotion.

3. Visas and Work Permits for Directors/Shareholders

Foreign company directors or employees must have:

• A Non-Immigrant Business Visa (B Visa)

• A valid Work Permit issued by the Ministry of Labour

4. Tax & Compliance Duties

Thai companies must:

• Register for corporate income tax (20%)

• Register for VAT if annual turnover exceeds 1.8M THB

• File annual financial statements and audit reports

• Maintain proper accounting records as required by lawConclusion: Steps for Smooth Setup

Setting up a company in Thailand requires careful planning:

✔ Choose the right entity type

✔ Understand foreign ownership limits

✔ Arrange proper visas and work permits

✔ Stay compliant with tax and accounting obligations

At Wendy Legal & Advisory, we guide foreigners through every step of company

registration, ensuring your business starts smoothly and stays compliant.