Company Setup in Thailand

Setting up a company in Thailand involves several steps and processes, which will vary depending on the type of business and the nationality of the business owners. Here's a general outline of the process:

1. Choose a Business Type

Thai Limited Company: This is the most common structure for foreigners. It requires at least three shareholders (which can be Thai or foreign nationals).
Foreign Business License (FBL): If the company has more than 49% foreign ownership, you may need an FBL unless the business falls under the list of activities that foreigners can engage in without the license.
BOI-Approved Company: Certain industries may be eligible for incentives through the Board of Investment (BOI), such as tax breaks and exemptions on foreign ownership restrictions.

2. Register the Company Name

Submit a name reservation to the Department of Business Development (DBD). The name must not be similar to existing companies and should be in line with legal guidelines.

3. Prepare Required Documents

Articles of Association: This includes the company’s objectives, registered address, and shareholder details.
List of Shareholders: All shareholders must be listed, and their shareholding percentages should comply with Thai law.
Memorandum of Association: This document outlines the company name, location, objectives, and capital structure.
Company Registration Forms: These need to be filed with the DBD.

4. Register with the Department of Business Development (DBD)

Submit the necessary paperwork to the DBD, including the list of directors, company bylaws, and proof of initial capital.

5. Deposit Initial Capital

Depending on the type of business, you may need to deposit a certain amount of initial capital in a Thai bank account. The minimum registered capital for a Thai Limited Company is 2 million THB if foreign ownership exceeds 49%.

6. Apply for Tax ID and VAT Registration

Once registered, the company must apply for a corporate tax ID from the Revenue Department. If the company’s revenue exceeds 1.8 million THB per year, VAT registration is mandatory.

7. Obtain Necessary Licenses

Depending on the business type, you may need additional licenses, such as a Food and Beverage License, FBL, or other sector-specific permits.

8. Hiring Foreign Staff

If the company plans to hire foreign workers, you must comply with work permit regulations, including maintaining a ratio of four Thai employees for every foreign worker.

9. Social Security Registration