Setup Limited Company

Blog

Company in Thailand

Useful articles related to our services

How to set up a company in Thailand

Thailand has become a top destination not only for tourism, but also for business opportunities — especially among expats and foreign investors. With a strong economy, a welcoming business environment, and a high demand for services in tourist areas like Pattaya, many entrepreneurs are now choosing to set up companies in Thailand and turn their visits into long-term ventures.

In this guide, you’ll learn everything you need to know about starting a company in Thailand — including legal requirements, company types, registration steps, and how to stay compliant as a foreign business owner.

📌 Need help setting up your company? J&E Concierge Pattaya offers full support for company registration, tax setup, and business consulting.

Step-by-Step Process to Set Up a Company in Thailand

Setting up a company in Thailand involves a series of legal and administrative steps that ensure your business is compliant with local regulations. Whether you’re a foreign investor or an entrepreneur planning to operate in Thailand, understanding the registration process is essential.

From reserving a company name and appointing directors to submitting documents to the Department of Business Development (DBD) and registering for tax purposes, each stage must be handled carefully. Below, you’ll find a clear breakdown of the required steps to successfully establish your Thai company and start operating legally and efficiently.

🔹Reserve Your Company Name

Submit 1–3 preferred company names to the Department of Business Development (DBD) for approval. The approved name is valid for 30 days.

🔹Prepare the Memorandum of Association (MOA)

Include company name, registered address, objectives, share capital, and details of at least 3 promoters. All must sign in the presence of witnesses.

🔹Convene a Statutory Meeting

Approve company bylaws, appoint directors, allocate shares, and approve auditor appointment.

🔹Register the Company with the DBD

Submit the registration application, MOA, Articles of Association, list of shareholders, and director information.

🔹Obtain Tax Identification Number (TIN)

Register with the Thai Revenue Department and apply for a corporate tax ID.

🔹Register for VAT (if applicable)

Required if annual turnover exceeds 1.8 million THB or if the business is in certain sectors (e.g., hospitality, logistics).

🔹Open a Thai Corporate Bank Account

Needed to manage business funds and receive payments. Company documents and director presence are usually required.

🔹Apply for Necessary Licenses
Depending on your business activity, you may need additional permits (e.g., restaurant license, tourism license, import/export permits).

🔹Arrange Monthly Accounting & Annual Audit

Maintain proper financial records, submit monthly VAT and tax filings, and prepare audited financial statements annually.

  1. Pro tip: Foreign-owned companies must comply with the Foreign Business Act, and may need Thai majority shareholders or Board of Investment (BOI) approval, depending on the business type.

Key Considerations When Starting a Business in Thailand

To legally operate a business in Thailand, obtaining the correct business licenses is essential. These must be secured before starting any commercial activity. The type of license you need depends on your industry — such as F&B, tourism, hospitality, education, or retail.

At J&E Concierge Pattaya, we provide full assistance in acquiring business operating licenses, guiding you through every step to ensure your company is fully compliant and ready to trade.

🔹 Additional Requirements for Thai Limited Companies:

  • Minimum Thai Employees: A limited company must employ at least 4 Thai nationals to sponsor one foreign work permit.

  • Work Permits: Foreign employees must obtain work permits and be registered in Thailand’s Social Security Fund.

  • Registered Capital: A Thai Limited Company must have a minimum capital of 2 million THB (for each foreign work permit, if applicable).

  • Shareholder Documentation: You must submit 2 copies of each shareholder’s ID and a proof of address.

  • Business Location Proof: If you lease your commercial space, 3 copies of the rental agreement are required.

  • Foreign Shareholding Over 40%: You may be required to submit bank statements from each shareholder every 6 months.

💡 Planning to open a hotel, restaurant, or other business in Thailand?
J&E Concierge provides expert legal, accounting, and licensing support — from the initial company setup to ongoing compliance.

Types of Business Entities in Thailand

Before setting up a company in Thailand, it’s important to understand the different types of business entities available. Each structure has its own legal and operational implications, especially for foreigners.

🔹 1. Private Limited Company (Co., Ltd.)

  • The most popular choice among foreign investors

  • Requires at least 3 shareholders (promoters) and 1 director

  • Shareholder liability is limited to the amount of capital subscribed

  • Annual financial statements must be audited and submitted to the Department of Business Development (DBD)

✅ Most similar to Western-style corporate structures. Flexible and cost-effective.

🔹 2. Public Limited Company (PLC)

  • Requires at least 15 promoters

  • Can offer shares to the public (stock exchange listing possible)

  • Promoters must hold shares for at least 2 years

✅ Suitable for large-scale operations and companies planning to go public.

🔹 3. Limited Partnership

  • Includes one general partner with unlimited liability and limited partners with liability limited to their investment

  • Must be registered

⚠️ Less common for foreigners due to risk exposure

🔹 4. Branch Office

  • Allows a foreign company to operate in Thailand

  • Must register with the Ministry of Commerce

  • Subject to Thai law and taxation

✅ Suitable for companies that want to expand operations without forming a new legal entity

🔹 5. Representative Office

  • Limited scope: can conduct non-revenue-generating activities such as:

    • Sourcing goods or services

    • Inspecting quality

    • Providing company information

  • Cannot generate income, sign contracts, or negotiate deals

✅ Best for market research or supplier coordination

Choosing the right business entity in Thailand depends on your goals, capital, and whether you need local or foreign majority control.
💼 Need help choosing the right structure? Contact J&E Concierge Pattaya for expert advice and full company registration support.

Legal Requirements and Responsibilities for Business Registration in Thailand

When registering a company in Thailand, especially as a foreigner, it’s essential to understand and comply with the country’s legal requirements. These responsibilities affect everything from ownership structure to accounting practices.

🔹 1. Ownership Restrictions

  • Foreigners are generally limited to owning a maximum of 49% of a Thai company under the Foreign Business Act.

  • To retain majority control, many foreign entrepreneurs partner with a Thai citizen or apply for BOI (Board of Investment) promotion, which may allow 100% foreign ownership in certain sectors.

🔹 2. Visa and Work Permit Requirements

  • To legally work in your own company, you must apply for a Non-Immigrant “B” (Business) Visa, followed by a Work Permit.

  • The company must employ at least 4 Thai employees per foreigner and have 2 million THB in registered capital for each work permit.

🔹 3. Employment Regulations

  • You may hire both Thai and foreign staff, but labor laws and registration requirements differ.

  • Foreign staff must be registered with the Social Security Office, and contracts must comply with Thai labor law.

🔹 4. Accounting and Tax Compliance

  • Thai law mandates monthly bookkeeping, VAT submissions (if applicable), and annual audited financial statements.

  • A certified Thai accountant must manage your company’s financial reporting and tax filings.

📌 Failing to meet any of these requirements can lead to fines, business suspension, or visa issues. That’s why working with an experienced consultancy is crucial for ensuring full compliance.

✅ Need help navigating Thai legal obligations?

J&E Concierge Pattaya offers full support with company registration, accounting, work permits, and legal compliance — so you can focus on growing your business with confidence.

test