Businesses and entrepreneurs all over the globe are looking to establish businesses in progressive countries like Thailand. With its strong foreign direct investment, definitely, it is a haven for foreign start-ups and companies.
However, understanding the Thai business policies is fundamental to establishing an offshore company in the country. It would be best to learn the ins and outs of company formation process in Thailand. So, read on to discover the answer to this question and get your business ready to dive into a new business environment.
Explore Company Registration Policies in Thailand
In Thailand, the most common form of business structure for foreigners is a Limited Company. But, in accordance with the Thai business policies, this type of structure limits foreign ownership to 49%. A Thai majority-owned company has lesser setup requirements. However, if you want a company to be foreign-majority owned, it can be possible through a BOI promotion or Foreign Business License.
These two methods will be discussed in the next section together with a general overview of the company registration process in the country.
Maximising Foreign Company Ownership in Thailand
Forming a company in Thailand typically follows this general guideline:
Government fees* (USD)
|Company name reservation|
|Approval of Memorandum of Association||Max. $800.47|
|Deposit the registered capital in a bank account|
|Creation of company seal|
|Registration of the company as a legal entity||Approx. $166.50 – $8,005 ($16 USD per $3,202.48 of registered capital)|
|Obtain a taxpayer card from the Revenue Department|
*Converted from THB to USD
Likewise, here are the two methods to exceed the 49% foreign ownership of a company:
Board of Investment (BOI) Promotion
This is a special privilege granted to businesses that are deemed to have a favourable impact on the Thailand economy. Companies that will meet the criteria for approval will enjoy tax incentives, reduction of import duties, and 100% foreign ownership.
Foreign Business License
A foreign business license is provided for companies who wish to operate in industries that are restricted to foreigners. This is in accordance with the Foreign Business Act B.E. 2542 (1999) [Dezan Shira & Associates]. Also, here’s a chart of the fees involved when applying for this type of license:
|License application||$32 – $64 USD|
A license under Section 7 of Foreign Business Act B.E. 2542 (1999)
License for any business in List two
License for any business in List three
Acquiring the Right Business License Successfully
It can be daunting to tread through all the challenges faced when acquiring a business license in Thailand. Challenges like language barrier, time taken and administrative duties. However, there are experts like company formation agents that can provide advisory and assistance, while meeting your company objectives.
Feel free to seek advice from a company formation expert to have a smooth overseas company setup.
Steps of Company Registration, Thailand-company.com
Thailand Foreign Business License, Interactivethailand.com
BOI Promoted Company, Umpirelegal.com