Company incorporation in Thailand

If you do business in Thailand there may be a point that it makes sense to set up a local company. Then you need to know how to comply with local regulations and who can help you.

This article describes:

  • the most likely types of company to set up;
  • how you do this and who can help you;
  • a few important fiscal regulations.
Office building where a foreign company is incorporated

Your legal entity in Thailand

Thailand, with its strategic location in Southeast Asia, offers a growing economy, strong infrastructure, and a business-friendly environment for foreign investors. The country’s diverse industries, including manufacturing, agriculture, tourism, and technology, present numerous opportunities for foreign businesses.

Most Common Business Forms for Foreign Companies

The most common business structure for foreign companies in Thailand is the Private Limited Company (PLC).

  • Private Limited Companies allow for 100% foreign ownership, but there are restrictions on foreign ownership in certain sectors, such as land ownership and certain services (e.g., banking, telecommunications).
  • The company must have at least three shareholders, and at least one director, who can be a foreign national. A Thai national must hold at least 51% of the shares if the business falls under restricted sectors.
  • Shareholders benefit from limited liability, which means personal assets are protected from company debts.
  • There is no minimum capital requirement, although a general practice is to have a registered capital of at least 1 million Thai Baht (THB) for foreign companies.

Another option for foreign businesses is the Branch Office, which is an extension of the parent company. This structure does not provide limited liability and may be subject to different regulations than a Private Limited Company.

Setting Up a Company in Thailand

Setting up a Private Limited Company in Thailand involves several steps:

  1. Choosing a company name and ensuring it is unique and complies with Thai regulations. The name must be in Thai or Roman characters.
  2. Filing the company’s incorporation documents with the Department of Business Development (DBD), including the Articles of Association, company registration forms, and proof of a local registered address.
  3. Appointing at least one director and three shareholders, who can be foreign nationals. If the business falls under restricted sectors, a Thai national must hold at least 51% of the shares.
  4. Opening a corporate bank account in Thailand and depositing the initial capital required.
  5. Registering with the Thai Revenue Department for tax purposes and obtaining a tax identification number.

The entire incorporation process can be completed within 2-4 weeks, depending on the complexity of the business and the required approvals.

Taxation and Withholding Taxes

Thailand has a relatively attractive tax system. The corporate income tax rate for most businesses is 20%, with small and medium-sized enterprises (SMEs) eligible for a reduced tax rate on their first 300,000 THB of income.

Regarding dividends:

  • Dividends paid to foreign shareholders are subject to a 10% withholding tax, which may be reduced or exempted under Thailand’s network of double taxation treaties.
  • Thailand has signed numerous double tax agreements (DTAs) with countries around the world, allowing foreign investors to reduce withholding taxes on dividends and other types of income.

Service Providers for Company Incorporation

These service providers offer expert assistance with company registration, legal compliance, tax registration, and more, helping foreign businesses navigate the process smoothly and effectively.

Do you need a local company?

A local entity is not always the answer. A distributor, an agent or an employer of record gives you presence in the market without the administration of your own company.

You do need one when you hire local staff, hold stock or an office, bid for public tenders, or when your activity creates a permanent establishment for tax purposes. The alternative is usually a branch: cheaper to set up, but the parent company stays liable.

Do you need help in Thailand?

Our service providers are local specialists. They know the market, the regulations and the parties that matter, and they can support you with the steps on this page.

Ask a professional

Setting up a company in Thailand in three steps

Step 1

Choose the legal form

Compare a limited company, a branch and a representative office on liability, minimum capital, local director requirements and what a bank will accept.

Step 2

Incorporate and register

Prepare the statutes and identification documents, register with the trade register and the tax authority, and open a local bank account — usually the slowest step.

Step 3

Stay compliant

Arrange bookkeeping, VAT and payroll from day one and note the filing deadlines. Fines for late annual accounts are common and easy to avoid.

Company incorporation in other countries

More about Thailand