Setting Up a Company in Thailand
Everything you need to know about registering your business
Registering a company in Thailand is a multi-step process handled primarily through the Department of Business Development (DBD), which operates under the Ministry of Commerce. The standard procedure involves reserving a unique company name, preparing and filing the Memorandum of Association and Articles of Association, convening a statutory organizational meeting, and submitting the complete registration dossier to the DBD. Once the company registration certificate is issued, you must obtain a corporate Tax Identification Number (TIN) from the Revenue Department and, if applicable, register for Value Added Tax (VAT).
Choosing the right company structure is one of the most important decisions you will make. A Thai Limited Company is by far the most popular choice for foreign entrepreneurs because it provides limited liability protection for shareholders and can be 100% foreign-owned in many sectors. Alternatives include a Sole Proprietorship (restricted to Thai nationals), Ordinary and Limited Partnerships, and a Representative Office (which cannot generate revenue in Thailand). For businesses in restricted sectors under the Foreign Business Act, BOI promotion or a Foreign Business License may unlock 100% foreign ownership.
Cost Overview
Total setup costs for a Thai Limited Company typically range from 25,000 to 50,000 THB in professional legal and agency fees. Government registration fees are calculated at 5,500 THB per 1 million THB of registered capital, with a minimum fee of 5,500 THB and a maximum of 250,000 THB. Additional costs include company seal fabrication (around 500 THB), certified true copies of documents, and bank account opening deposits. If your business requires BOI promotion, budget an additional 20,000-100,000 THB for application preparation and legal advisory.
Expected Timeline
The full registration process for a standard Thai Limited Company typically takes 7 to 14 business days, assuming all documents are in order. Name reservation with the DBD takes 1-2 business days, preparation and filing of incorporation documents takes 3-5 business days, and tax registration with the Revenue Department takes an additional 1-3 business days. BOI promotion applications are a separate process that can take 3-6 months depending on the complexity of the project and the incentive tier requested.
Company Types
Sole Proprietorship
Simplest form, owned by one person. Easy to set up but unlimited personal liability. Not recommended for businesses with significant risk.
Partnership
Two or more partners. Can be registered as ordinary or limited partnership. Partners have joint liability for partnership debts.
Limited Company
Most common structure for foreign-owned businesses. Separate legal entity, limited liability for shareholders. Can be 100% foreign owned.
Representative Office
Cannot generate revenue in Thailand. Limited to marketing, procurement, and coordination activities. Requires BOI or other approval.
Setting Up a Thai Limited Company
1
Reserve Company Name
Submit name reservation to Department of Business Development. Must not be identical or similar to existing companies.
2
Prepare Documents
Draft memorandum of association, articles of association, and shareholder agreements.
3
Register at DBD
Submit registration documents and pay registration fee. Obtain company registration certificate.
4
Register for Tax
Obtain Tax Identification Number (TIN) and register for VAT if annual revenue exceeds 1.8M THB.
5
Open Bank Account
Open corporate bank account with company documents and director identification.
6
Post-Registration
Register for social security, obtain work permits if needed, and comply with ongoing requirements.
Minimum Capital
No minimum capital required for most businesses. However, if applying for work permits, minimum capital of 2M THB per foreign employee is typically required.
Director Requirements
At least one director of any nationality. Director must be at least 20 years old and not bankrupt. No residency requirement for directors.
Shareholder Requirements
Minimum 3 shareholders required. Foreigners can hold 100% of shares unless business falls under restricted activities requiring Thai majority.
Costs & Timeline
Typical Costs
- Company registration: 5,000-10,000 THB
- Legal/agent fees: 15,000-50,000 THB
- Tax registration: Free
- Bank account: Free (varies by bank)
Expected Timeline
- Name reservation: 1-2 days
- Company registration: 3-5 days
- Tax registration: 1-3 days
- Total: 1-2 weeks for simple company
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