What Types of Companies Can Foreigners Set Up in Thailand?

Thailand is one of the most attractive destinations for foreign investors in Southeast Asia, thanks to its growing economy, strategic location, and business-friendly government policies. However, setting up a company as a foreigner requires understanding the right business structure that aligns with your goals and complies with Thai law.

Here are the main types of companies that foreigners can set up in Thailand:

1. Private Limited Company (Co., Ltd.)

The Private Limited Company is the most common business structure used by both locals and foreigners.
Key Features:

Requires at least 3 shareholders (individuals or juristic persons).
Foreign ownership is generally limited to 49%, but there are exceptions. [Read exceptions]
Suitable for trading, service businesses, and general business activities.
Can apply for Foreign Business License (FBL) or BOI promotion to own 100%.

2. BOI-Promoted Company (Board of Investment Thailand)

Companies that receive promotion from the Board of Investment (BOI) can enjoy many privileges.
Key Features:

Up to 100% foreign ownership allowed.
Exemptions on import duties, corporate income tax reductions, and other tax incentives.
Permission to own land for business use (in specific cases).
Easier process to obtain Work Permits and Visas for foreign staff.
Suitable for industries like manufacturing, technology, software, renewable energy, and more.

3. Foreign Business License (FBL) Company

If your business is on the restricted list under the Foreign Business Act, you may need to apply for an FBL to operate as a majority foreign-owned company.
Key Features:

Allows foreign ownership over 49%, subject to government approval.
Suitable for certain service businesses and sectors reserved for Thai nationals.
Requires justification that the business will benefit Thailand.

4. Representative Office

A Representative Office is suitable for foreign companies that wish to have a presence in Thailand but do not plan to generate income locally.
Key Features:

Can engage in market research, quality control, product sourcing, and liaison activities.
Cannot earn revenue or sign contracts in Thailand.
Ideal for companies seeking to explore market opportunities before full entry.

5. Branch Office

Foreign companies can set up a Branch Office to conduct revenue-generating activities in Thailand.
Key Features:

Acts as an extension of the parent company.
Must follow Thai accounting and tax regulations.
Profits are subject to Thai corporate income tax.

6. Regional Office (ROH – Regional Operating Headquarters)

Designed for companies managing operations within ASEAN.
Key Features:

Coordinate, supervise, and provide services to affiliated companies in the region.
Can enjoy certain tax privileges (subject to conditions).

Choosing the Right Structure

Choosing the right type of company depends on various factors:

Nature of your business.
Ownership preferences (Thai partner or 100% foreign-owned).
Eligibility for BOI or FBL.
Long-term goals (trading, manufacturing, services, investment).

At BRW, we help foreign investors analyze, plan, and choose the right company structure to ensure smooth registration, compliance, and long-term success in Thailand.

Contact us today to learn how we can help you start your business in Thailand with confidence!