Business in Thailand
Company setup, taxes, work permits, and compliance for foreign entrepreneurs
Doing Business in Thailand
Thailand offers a favorable environment for foreign entrepreneurs, with a streamlined company registration process and various incentives for qualifying businesses. However, navigating Thai business law and tax requirements requires careful attention.
Most foreigners operate through a Thai Limited Company, which provides limited liability and allows for 100% foreign ownership in many industries. Certain business activities, however, require Thai majority ownership or special licenses under the Foreign Business Act.
Whether you're setting up a tech startup in Bangkok, a consulting firm in Chiang Mai, or an import-export business, understanding the legal framework is essential for compliance and growth.
1-2 weeks
Company Registration
for a Thai Limited Company
$700-2,100
Setup Cost
including professional fees
20%
Corporate Tax
standard rate (BOI: 0-13%)
1.8M THB
VAT Threshold
annual revenue for mandatory registration
Setup Guide
Step-by-step guide to registering your company in Thailand.
Learn more
Company Types
Compare sole proprietorship, partnership, limited company, and representative office.
Learn more
Taxes
Understand corporate tax, VAT, withholding tax, and filing requirements.
Learn more
Directory
Find accountants, lawyers, and business consultants.
Learn moreKey Considerations for Foreign Business Owners
Foreign Business Act
The FBA restricts foreign ownership in certain sectors. Most tech and export businesses can be 100% foreign-owned, but retail, construction, and services may require Thai majority ownership or BOI promotion.
Work Permits
Foreign employees need a Non-B visa and work permit. The company must maintain a 4:1 Thai-to-foreign employee ratio and meet minimum capital requirements (2M THB per foreign worker).
Annual Compliance
All Thai companies must file audited financial statements, monthly VAT returns, withholding tax, and social security contributions. Budget 5,000-15,000 THB/month for accounting services.
BOI Promotion
The Board of Investment offers tax holidays (3-8 years), import duty exemptions, and relaxed foreign ownership rules for qualifying businesses in technology, manufacturing, and digital services.
Doing business in Thailand as a foreigner is governed primarily by the Foreign Business Act B.E. 2542 (1999), which restricts foreign participation in certain sectors listed under Annexes 1, 2, and 3. The most common legal structure for foreign entrepreneurs is the Thai Limited Company, registered with the Department of Business Development (DBD) under the Ministry of Commerce. Depending on your business activity, you may also need licenses from the Revenue Department, the Board of Investment (BOI), or sector-specific regulators such as the Food and Drug Administration or the Bank of Thailand.
Thailand's economy is driven by tourism, agriculture, electronics manufacturing, and an increasingly vibrant technology sector. The Board of Investment actively promotes foreign investment through tiered incentive zones — Zone 1 (Bangkok and surrounding provinces), Zone 2 (mid-level development areas), and Zone 3 (less-developed provinces) — each offering progressively generous tax holidays, import duty exemptions, and relaxed foreign ownership rules. Key growth sectors include digital services, renewable energy, medical tourism, and logistics, all of which qualify for BOI promotional privileges.
Thailand Business at a Glance
20%
Corporate Tax Rate
3 tiers
BOI Incentive Zones
2M THB
Minimum Capital
Business Categories
Company Registration
Registering a Thai Limited Company involves reserving a company name with the DBD, filing a Memorandum of Association, holding a statutory meeting, and submitting registration documents. The process typically takes 7-14 business days and requires a minimum of three shareholders and at least one director. Professional legal fees range from 25,000 to 50,000 THB, with additional government registration fees based on registered capital.
Tax & Accounting
All Thai companies must file monthly VAT returns (if registered), withholding tax remittances by the 7th of each month, half-year corporate income tax installments, and annual audited financial statements with the Revenue Department. Monthly bookkeeping services typically cost 5,000-15,000 THB, while annual audit fees range from 15,000 to 50,000 THB depending on transaction volume and company complexity.
Work Permits
Foreign nationals must hold a valid Non-B visa and a work permit issued by the Department of Employment to legally work in Thailand. The employing company must maintain a ratio of four Thai employees per foreign worker and meet minimum paid-up capital requirements of 2 million THB per foreign employee. Work permits are tied to a specific employer, job position, and work location, and must be renewed annually.
Get Weekly Thailand Updates
Visa breakthroughs, cost-of-living trends, and local secrets — delivered every Tuesday.
Join 2,500+ expats getting our weekly Thailand insights
No spam, just value. Unsubscribe any time.