Introduction-
Thailand is one of Southeast Asia’s fastest-growing business hubs, offering strategic market access, investor incentives, and a thriving economy. For foreign entrepreneurs, the opportunity is significant—but setting up a company in Thailand requires navigating unique legal and regulatory frameworks.
At Kshetry & Co. Legal Advisors (Kshetry Innovate Co. Ltd in Thailand), we assist international investors from the USA, UK, and beyond in establishing legally compliant and profitable ventures in Thailand.
1. Understanding Foreign Ownership Rules
Foreign ownership in Thailand is regulated under the Foreign Business Act (FBA).
-
In most cases, foreign investors can hold up to 49% ownership, while Thai nationals must hold at least 51%.
-
Certain industries allow 100% foreign ownership, particularly under the Board of Investment (BOI) promotion scheme.
2. Choosing the Right Business Structure
Foreign entrepreneurs typically choose from:
-
Private Limited Company (Co., Ltd.) – Most common structure, requires at least 3 shareholders.
-
Branch Office or Representative Office – Suitable for foreign parent companies expanding into Thailand.
-
BOI-Promoted Company – Offers incentives such as tax exemptions and full foreign ownership in eligible sectors.
3. Capital & Licensing Requirements
-
Standard companies require a minimum registered capital, often higher for foreign-owned entities.
-
Certain businesses need special licenses under the FBA, especially in services, trade, and consultancy.
4. Tax & Compliance
-
Corporate income tax in Thailand is 20% (with reductions for small enterprises).
-
Companies must maintain proper accounting, file annual returns, and comply with Thai Revenue Department regulations.
-
VAT registration is required if annual turnover exceeds THB 1.8 million.
5. Visa & Work Permits
Foreign business owners and employees must secure:
-
A Non-Immigrant Business Visa (B Visa)
-
A Work Permit tied to the Thai company
Companies must also meet staffing requirements (e.g., employing a minimum number of Thai nationals per foreign employee).
Conclusion
Thailand offers immense opportunities for foreign entrepreneurs, but success depends on understanding local laws, ownership restrictions, and compliance obligations.
At Kshetry & Co. Legal Advisors, our international team provides end-to-end guidance—from company registration to BOI applications, tax advisory, and immigration support—ensuring your business journey in Thailand is smooth, compliant, and growth-focused.
📌 Ready to expand your business into Thailand?
👉 Connect with us today for expert legal guidance tailored to your goals.
