How Can a Foreigner Start a Business in Thailand?

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Thailand is a thriving destination for foreign investors due to its strong economy, strategic location in Southeast Asia, and attractive investment policies. However, setting up a business as a foreigner involves several steps to ensure compliance with Thai laws.

Here is a step-by-step guide to help you establish your company in Thailand.

✅ 1. Understand Ownership Rules and Restrictions

Foreigners can own up to 100% of a company in Thailand, depending on the business type.

Some businesses require a Thai partner (maximum 49% foreign ownership) unless granted a Foreign Business License (FBL) or BOI promotion.
Export, manufacturing, and BOI-promoted businesses can typically be 100% foreign-owned.

✅ 2. Choose the Right Business Structure

The most common business entities for foreign investors include:

Private Limited Company (Co., Ltd.) – The most popular and flexible option.
Branch Office – An extension of a foreign company (can generate income in Thailand).
Representative Office – For market research and liaison activities (cannot generate income).
BOI-Promoted Company – Offers tax and investment incentives with full foreign ownership.

✅ 3. Determine the Registered Capital Requirement

Minimum 2 million THB for a foreign-owned company.
3 million THB per business activity if applying for an FBL (Foreign Business License).
BOI-promoted businesses may have different capital requirements based on the project proposal.

💡 Capital is also linked to work permits – 2M THB per foreign work permit.

✅ 4. Secure a Physical Business Address (Required for Registration)

All companies in Thailand must have a registered business address before incorporation.

Options for a Company Address:

Commercial Office or Co-working Space – Must provide lease agreements.
Virtual Office – Accepted only for certain business types and may not work for VAT registration.
Home Office – Allowed in some cases but depends on zoning regulations.
Industrial or Factory Location – Required for manufacturing businesses.

💡 Note: Some licenses (e.g., VAT registration) require the business location to be in a commercially zoned area.

✅ 5. Reserve a Company Name

Submit 3 name choices to the Department of Business Development (DBD).
The name must not be similar to existing companies.
Approved names are valid for 30 days before registration.

✅ 6. Prepare and Submit Incorporation Documents

Memorandum of Association (MOA).
Articles of Association (Company regulations).
List of shareholders (at least 3 persons required).
Director appointment & registered address proof.

💡 Note: A Thai company must have at least one director, who can be Thai or foreign.

✅ 7. Register for Tax ID and VAT (if applicable)

Obtain a Tax Identification Number (TIN) from the Revenue Department.
VAT registration (PP.01 Form) is required if annual revenue exceeds 1.8 million THB.
VAT-registered companies must file monthly VAT returns (PP.30 Form).

✅ 8. Apply for Work Permits and Visas

If a foreigner will work in the company, they need:

Non-Immigrant Business Visa (Non-B Visa).
Work Permit from the Ministry of Labor.
Company must meet financial and employee ratio requirements for work permits.

💡 Note: Generally, a company must have 2M THB registered capital per work permit and employ 4 Thai employees per foreign work permit.

✅ 9. Open a Corporate Bank Account

Use company registration documents, Tax ID, and director’s passport/work permit.
Thai banks may have different requirements for foreign-owned companies, so choosing the right bank is essential.

✅ 10. Ensure Ongoing Tax and Legal Compliance

Monthly Withholding Tax (PND 3, 53) and VAT (PP.30).
Corporate Income Tax (PND 50, PND 51) annually.
Social security contributions if hiring employees.
Annual financial statements and audit submission.

🎯 Summary: Steps for Foreigners to Start a Business in Thailand

Step	Details
1. Understand ownership rules	Up to 100% foreign ownership possible with BOI/FBL
2. Choose company type	Co., Ltd., Branch, Representative, BOI
3. Determine registered capital	Minimum 2M THB (standard), higher if needed
4. Secure business address	Required for registration (office, co-working, factory)
5. Reserve company name	Unique name registered with DBD
6. Register company	Submit official incorporation documents
7. Obtain Tax ID and VAT	Required for most businesses
8. Apply for visa & work permit	For foreign directors and staff
9. Open bank account	Corporate account for business operations
10. Ongoing compliance	Tax filings, accounting, legal requirements

💼 How BRW Can Help You Start Your Business in Thailand

At BRW – Boonrawee Co., Ltd., we provide a one-stop solution for foreigners looking to start a business in Thailand, including:

Company registration & legal structuring.
BOI and Foreign Business License (FBL) applications.
Work permit and visa processing.
Accounting, tax compliance, and business advisory.

📞 Contact BRW today for expert guidance and a smooth setup process!