How to start your business in Thailand?

Stardom Business Updates
13 ต.ค.
ยาว 3 นาที

Starting a business in Thailand involves several steps, including legal registration, obtaining necessary permits, and complying with local regulations. Below is a step-by-step guide to help you through the process:

1. Determine Your Business Structure

Thailand offers several business structures for foreigners:

Sole Proprietorship (mostly for Thai nationals)
Partnership (Ordinary or Limited)
Limited Company (Co., Ltd.) (most common for foreigners)
Branch Office of a foreign company
Representative Office (start representative office with stardombiznet)
BOI-Promoted Company (for eligible investments)

Most foreign entrepreneurs opt for a Limited Company (Co., Ltd.) or a BOI-promoted business if they qualify for investment incentives.

2. Reserve Your Company Name

Submit 3 proposed names (in Thai) to the Department of Business Development (DBD).
The name must be unique and comply with naming regulations.
Approval usually takes 1-3 days.

3. Register Your Company

For a Thai Limited Company (Co., Ltd.)

o Memorandum of Association (MOA):

Draft and submit to the DBD (includes business objectives, capital, shareholder details).
Requires at least 3 shareholders (can be Thai or foreign).
Minimum capital depends on business type

o Minimum Registered Capital for Companies with Foreign Shareholders in Thailand

Minimum Capital Requirement: THB 2 million per foreign shareholder is required for company registration. If the company has more than one foreign shareholder, the capital must be proportionally higher (e.g., 2 foreign shareholders = THB 4 million minimum).
Additional Requirements for Capital Over THB 5 Million:
If the registered capital exceeds THB 5 million, the company may need to prove the source of funds (e.g., bank statements, transfer documents).
Some business activities (especially those requiring a Foreign Business License - FBL) may have stricter capital requirements.

o Minimum Registered Capital for Companies with Foreign Shareholders in Thailand

Statutory Meeting:

o Appoint directors, approve company bylaws.

Company Registration:

o Submit documents to the DBD (MOA, shareholder list, director details, registered address).

o Pay registration fees (~THB 5,000-50,000, based on capital).

Tax Registration:

o Register with the Revenue Department within 60 days of incorporation.

o Obtain a Tax ID (PND.20) and VAT certificate (if applicable).

For Foreign-Owned Businesses

If foreign ownership exceeds 49%, additional restrictions apply (unless under BOI promotion or a US-Thai Amity Treaty company).
Some business types require Foreign Business License (FBL) from the Ministry of Commerce.

4. Obtain Necessary Licenses & Permits

Factory License (if manufacturing) – from the Industrial Works Department.
Food & Beverage License – from the Food and Drug Administration (FDA).
Tourism Business License – from the Ministry of Tourism.
Work Permits & Visas for foreign employees (see step 5).

5. Visa & Work Permit Requirements

Business Visa (Non-B Visa): Apply at a Thai embassy/consulate abroad.
Work Permit: Required for foreign employees (processed at the Ministry of Labour).
Extension of Stay: Apply at Thai Immigration if staying long-term.

6. Open a Corporate Bank Account

Required documents:

Company registration documents
List of shareholders & directors
Business license (if applicable)
Thai banks may require a work permit for foreign signatories.

7. Comply with Ongoing Requirements

Accounting & Tax Filing: Monthly VAT (if applicable), annual corporate tax (20% for most companies).
Social Security Registration: For employees (Thai and foreign).
Annual Audit & Financial Statements: Submit to the DBD and Revenue Department.

Additional Considerations

BOI Promotion: Offers tax breaks, 100% foreign ownership, and work permit privileges for eligible businesses.
US-Thai Amity Treaty: Allows Americans to own 100% of certain businesses.
Smart Visa: For tech startups and investors.