Thai Company Limited
Expand/Set up Business in Thailand
As one of Bangkok’s trusted business consultant firm,
we are here to support entrepreneurs and investors
who want to establish their company in Thailand
the right way.
At Act & Align Advisor, communication comes first. We provide honest advice, clear guidance, and full compliance support, so you know exactly what to expect at every step. Our pricing is transparent and our process is straightforward.
8 Essential Requirements for Thailand Company Formation Process
01
Business Address
Every company in Thailand must have a registered business address. This address will be used for official correspondence, tax purposes, and government registration. A virtual or serviced office can be used if it meets DBD and revenue department requirements.
02
Directors
At least one director is required to manage the company. The director can be of any nationality and is responsible for representing the company in all legal and financial matters.
03
Shareholders
Generally, at least 51% of shares must be held by Thai nationals, while up to 49% can be held by foreign investors. Companies qualifying under BOI promotion or Foreign Business License (FBL) may be eligible for increased foreign shareholding in accordance with Thai law.
04
Company Capital
The minimum registered capital is THB 100,000. However, if the company plans to hire foreign employees, the minimum registered capital must be THB 2,000,000 per work permit, as per Thai labor and immigration regulations.
05
Corporate Bank Account
Once the company is officially registered, a Thai corporate bank account can be opened. This account will be used for capital injection, business operations, and all company-related financial transactions.
06
Tax & VAT
All companies in Thailand must register for tax. VAT registration becomes mandatory when the company’s annual revenue exceeds 1.8 million THB or when specific business activities require VAT registration from the start.
07
Social Security
If your company employs staff, registration with the Social Security Office (SSO) is required. Employers must contribute 5% of each employee’s monthly salary to the social security fund.
08
Business Permit
Depending on your industry, additional licenses may be required for example, restaurant, import/export, or BOI-promoted business permits.
Types of Structured Company in Thailand
Thai Majority Company
The most common company structure in Thailand. With at least two shareholders and one director, registration typically takes 7–10 business days.
This structure suits a wide range of business activities.
- Minimum 2 shareholders required
- Directors can be of any nationality
- Unlimited in scope of activities
- Hiring foreigner at ratio of 4:1
- Minimum capital at 100K or 2MB if hiring at least one foreigner
Most Popular
Representative Office
Representative is suitable for company that conduct the activity such as, market-reserch and permitted for non-revenue generating activities only
- Non-Revenue Generating
- Minimum capital: THB 3,000,000
- No shareholders required
- 100% foreign ownership is allowed.
- May hire foreign staff at a 1:1 ratio
Branch Office
Designed for foreign companies expanding operations into Thailand to offer services or sell products directly.
While it can generate income, activities are limited to those approved by Thai authorities.
- Income-generating within approved business activities under Thai law
- Minimum capital: THB 3,000,000
- No shareholder required
- 100% foreign ownership is allowed.
- May hire foreign staff at a 1:1 ratio
US-Thailand Treaty of Amity
This treaty allows U.S. citizens and companies to operate in Thailand with expanded business rights under the US-Thailand Treaty of Amity
- Allows U.S. majority ownership
- Provides equal treatment as Thai limited companies
- Minimum 2 shareholders required
- 100% foreign ownership permitted for U.S. citizens/entities
BOI Promoted Company
(Board Of Investment)
Companies promoted by the Board of Investment (BOI) enjoy a range of tax and non-tax incentives designed to encourage foreign investment and innovation in Thailand.
- Up to 100% foreign ownership, depending on project category
- Tax exemptions on corporate income and import duties
- Additional tax incentives and deductions for promoted activities
- Permission to own land for approved business purposes
- Easier employment of foreign experts and specialists
- Eligibility for additional business activities under BOI promotion
Popular
Foreign Business License (FBL)
A permit granted by the Ministry of Commerce that allows foreign-owned companies to operate in regulated business sectors, in full compliance with the Foreign Business Act (FBA)
- Allows up to 100% foreign ownership upon approval
- Issued for a specific duration and business scope
- Subject to sector-specific requirements and capital conditions
- An alternative pathway for businesses operating outside BOI promoted categories
Corporate Income Tax (CIT) Rates for Startups and SMEs in Thailand
Net Profit (THB) | CIT Rate | Eligibility Criteria |
|---|---|---|
Up to THB 300,000 | 0% | Applies to companies with registered capital of up to THB 5 million and annual revenue not exceeding THB 30 million. |
THB 300,001 to THB 3 million | 15% | Company must meet the same registered capital and revenue requirements as above. |
Above THB 3 million | 20% (Standard CIT Rate) | Standard corporate income tax applies to profits exceeding THB 3 million. |
Key Notes
- SME Qualification: Companies with registered capital of up to THB 5 million and annual income up to THB 30 million may qualify for SME tax rates.
- BOI-Promoted Businesses: Companies with Board of Investment (BOI) promotion may be eligible for additional tax benefits based on their approved project type and sector.
- Tax Compliance: All registered companies in Thailand must submit annual financial statements and tax filings in accordance with Thai law.
Your Key Partner for Business Success
