Thailand

Company Formation in Thailand

Thailand

Formation Time

2–4 weeks

Min. Capital

THB 2M (for work permit / foreign majority)

Corporate Tax

20%

Foreign Ownership

49%

Overview

Thailand is Southeast Asia's second-largest economy with a strategic location at the heart of mainland ASEAN. The Thai Limited Company is the standard vehicle, requiring minimum 3 shareholders with at least 51% Thai ownership under the Foreign Business Act (FBA). Foreign-majority ownership is achievable through BOI promotion, Treaty of Amity (US citizens), or unrestricted sectors. The corporate tax rate is a competitive 20%, and BOI-promoted companies can enjoy 3–8 years of CIT exemption. Thailand's 61 tax treaties, skilled workforce, and manufacturing prowess (automotive, electronics, food) make it compelling. The Eastern Economic Corridor (EEC) offers enhanced incentives for robotics, aviation, and digital technology.

20% corporate tax

BOI: 8-year tax holiday

Heart of ASEAN

61 treaties

EEC incentives

Why Choose Thailand

20% corporate tax — lowest in mainland ASEAN

BOI incentives: up to 8 years tax holiday + import duty exemptions

Strategic location — heart of mainland ASEAN (600M+ market)

Well-developed manufacturing and automotive supply chains

Eastern Economic Corridor (EEC) — next-generation industries

61 double tax treaties

Low operating costs with skilled workforce

Treaty of Amity allows 100% US ownership in most sectors

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Thai Limited Company	Up to 49% (without BOI/FBL); 100% with BOI promotion or FBL	1	THB 2M per work permit; THB 3M for foreign majority under FBL	20% CIT; BOI-promoted: 0% for 3–8 years + 50% reduction for 5 years	Most businesses — manufacturing, trading, services, restaurants
BOI-Promoted Company	100% (for promoted activities)	1	Varies by activity (minimum THB 1M excluding land)	0% CIT for 3–8 years; 50% reduction for additional 5 years; import duty exemptions	Manufacturing, technology, R&D, agriculture tech, medical devices, automotive
Branch Office	100%	1 branch manager	THB 3M minimum imported capital	20% on Thailand-sourced income; 10% profit remittance tax	Short-term projects, specific contracts, government tenders
Representative Office	100%	1 representative	THB 3M minimum remitted from abroad	No commercial activity — limited to liaison functions	Market research, sourcing, quality control

Step-by-Step Formation Process

Name Reservation

1–2 days

Reserve company name with the Department of Business Development (DBD). Three name choices can be submitted.

Memorandum of Association

1 day

File the MOA with DBD, signed by all promoters (minimum 3).

Statutory Meeting & Registration

1–2 weeks

Hold statutory meeting, appoint directors, adopt regulations, and file incorporation with DBD.

Tax Registration

1 week

Work Permit & Visa

2–4 weeks

Apply for Non-Immigrant B visa and work permit (THB 2M capital per work permit).

Bank Account Opening

1–2 weeks

Open corporate bank account. At least one director must attend the bank.

Costs & Fees

Government / License Fee	THB 5,500+
Our Service Fee	USD 3,000+
Annual Renewal	USD 1,800+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Thailand has a robust banking sector. Bangkok Bank and Kasikorn Bank are the most business-friendly for foreign-owned companies. Account opening requires an in-person visit.

Account Opening Time

1–2 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Bangkok BankKasikorn Bank (KBank)Siam Commercial Bank (SCB)Krungthai BankHSBC ThailandUOB Thailand

Tax Overview

Corporate Tax

20% flat rate; BOI-promoted: 0% for 3–8 years

Personal Income Tax

5% (THB 150K–300K) to 35% (over THB 5M); first THB 150K exempt

VAT / Sales Tax

7% (standard rate); mandatory registration at THB 1.8M turnover

Capital Gains Tax

Included in corporate income at 20%

Withholding Tax

10% on dividends; 15% on interest; 15% on royalties (reduced by treaties)

Double Tax Treaties

61 countries

BOI incentives: up to 8 years CIT exemption, import duty exemption on machinery, land ownership rights for foreigners. EEC zones provide enhanced incentives for 12 target industries.

Visa & Residency

Non-Immigrant B Visa + Work Permit

1 year, renewable

Company must have THB 2M capital per work permit and 4 Thai employees per 1 foreign work permit.

Smart Visa

Up to 4 years

For highly skilled professionals, investors (THB 20M+), executives, and startup entrepreneurs in S-curve sectors.

Thailand Privilege Card (Elite Visa)

5–20 years

Long-stay visa from THB 600,000 (5 years). Does not include work permit.

BOI Visa

1–2 years, renewable

Expedited processing for BOI-promoted company employees.

Family visa: AvailableProcessing: 2–4 weeks (Non-B); 1–2 months (Smart Visa)

Frequently Asked Questions

Can foreigners own 100% of a Thai company?

Under the FBA, foreign-majority ownership is restricted in many categories. 100% foreign ownership is achievable through: BOI promotion, Treaty of Amity (US citizens), Foreign Business Licence, or unrestricted sectors.

What are BOI incentives and how do I qualify?

BOI offers 3–8 years of 100% CIT exemption, followed by 50% reduction for 5 years, import duty exemptions, 100% foreign ownership permission, land ownership rights, and expedited visas. Your activity must be on the BOI-eligible list. Applications take 2–4 months.

Why is THB 2 million capital required?

THB 2M is the minimum registered capital per work permit for foreign employees. This is an immigration requirement, not company law. You also need 4 Thai employees per foreign work permit.

What is the Foreign Business Act?

The FBA classifies activities into 3 lists: List 1 (absolutely prohibited), List 2 (national security — Cabinet approval), List 3 (sectors where Thais are not yet ready to compete — requires Foreign Business Licence). Manufacturing is generally unrestricted.

How does Thailand compare to Vietnam for manufacturing?

Thailand has superior infrastructure, established supply chains (especially automotive), BOI incentives, and a more developed legal system. Vietnam has lower labour costs and aggressive FTA participation. Many manufacturers use a 'Thailand+1' strategy.