Starting a Business in Thailand
Understand the legal requirements for setting up and operating a business in Thailand as a foreigner.
Important Consideration
Operating a business without proper registration or a work permit is illegal and can result in fines, deportation, and bans. Always consult with a lawyer before starting.
Business Types
Thai Limited Company
Most common structure. Requires minimum 3 shareholders, with Thai majority (51%).
2 million THB (for work permit)
2-4 weeks
Pros
- ✓ Full business operations
- ✓ Can employ foreigners
- ✓ Can own certain assets
Cons
- • Thai majority ownership required
- • Annual compliance costs
- • Complex dissolution
Branch Office
Extension of foreign parent company. Limited to same activities as parent.
3 million THB
3-6 months
Pros
- ✓ 100% foreign owned
- ✓ No Thai shareholders needed
- ✓ Profits can be repatriated
Cons
- • Limited to specific activities
- • BOI promotion may be required
- • Complex registration
Representative Office
Non-revenue generating office for market research, coordination, etc.
None specified
2-4 weeks
Pros
- ✓ Simple structure
- ✓ Low cost
- ✓ Good for market entry
Cons
- • Cannot generate revenue
- • Limited activities
- • No profit
BOI Promoted Company
Companies approved by Board of Investment get special privileges.
Varies by activity
3-6 months
Pros
- ✓ 100% foreign ownership possible
- ✓ Tax benefits
- ✓ Land ownership rights
- ✓ Easier work permits
Cons
- • Limited to promoted activities
- • Performance requirements
- • Reporting obligations
Work Permit Requirements
- Valid non-immigrant visa (typically Non-B)
- Employment with registered Thai company
- 4:1 Thai to foreign employee ratio
- 2 million THB registered capital per foreign employee
- Job not on restricted list for foreigners
1-2 weeks after visa
3,000 THB/year
Annual renewal required
Jobs Restricted for Foreigners
Certain occupations are reserved for Thai nationals under the Royal Decree:
Business Taxes
| Tax Type | Rate | Note |
|---|---|---|
| Corporate Income Tax | 20% | On net profits |
| VAT | 7% | On goods and services |
| Withholding Tax | 1-15% | Varies by payment type |
| Personal Income Tax | 0-35% | Progressive rates |
| Social Security | 5% | Employer contribution (max 750 THB/month) |
Need Help Setting Up Your Business?
Get expert assistance with company registration, work permits, and Thai business law compliance.