Company Incorporation in Thailand
Pursuing company incorporation in Thailand is a smart move for entrepreneurs and international businesses looking to enter one of Southeast Asia’s most dynamic markets.
Thailand offers a strategic location, investor-friendly policies, and a legal framework that supports foreign business activities.With its stable economy, modern infrastructure, and access to key trade routes across ASEAN, China, and India, Thailand is a powerful launchpad for regional growth.
To ensure a smooth start, it’s essential to understand the legal steps, required documentation, and available company structures that align with your goals and compliance needs.In the sections below, you’ll find a clear and practical overview of the entire process, from choosing your business type to completing registration and beyond.
Fast facts about doing business in Thailand
Key economic indicators
Thailand is the second-largest economy in Southeast Asia, with a Gross Domestic Product (GDP) exceeding USD 500 billion. The country maintains steady economic growth, driven by robust exports, a thriving tourism industry, and an expanding digital economy. Its inflation rate remains moderate, and the government continues to invest in infrastructure and innovation. These factors make Thailand a reliable and forward-looking environment for business development.
Thailand is the second-largest economy in Southeast Asia, with a Gross Domestic Product (GDP) exceeding USD 500 billion. The country maintains steady economic growth, driven by robust exports, a thriving tourism industry, and an expanding digital economy. Its inflation rate remains moderate, and the government continues to invest in infrastructure and innovation. These factors make Thailand a reliable and forward-looking environment for business development.
Tax and legal environment
Thailand offers a competitive corporate income tax rate, generally set at 20%, with additional incentives available for promoted sectors. Companies may also benefit from exemptions or reductions through Board of Investment (BOI) promotions. The legal system is based on civil law, and while foreign investment is welcomed, some sectors may be restricted under the Foreign Business Act. Foreign ownership is possible in many cases, especially with strategic structuring and local partnerships.
Thailand offers a competitive corporate income tax rate, generally set at 20%, with additional incentives available for promoted sectors. Companies may also benefit from exemptions or reductions through Board of Investment (BOI) promotions. The legal system is based on civil law, and while foreign investment is welcomed, some sectors may be restricted under the Foreign Business Act. Foreign ownership is possible in many cases, especially with strategic structuring and local partnerships.
Why Thailand is a top destination for incorporation
Thailand has become a favored hub for company registration in Southeast Asia, attracting startups, SMEs, and multinational corporations.
Its business-friendly policies, cost efficiency, and investor support mechanisms make it especially appealing.
New entrants can benefit from government incentives, skilled labor, and an open market, particularly in tech, healthcare, logistics, and green energy.
Its modern infrastructure supports seamless business operations, both physically and digitally.
Strategic location in Southeast Asia with trade access to China and ASEAN
Located at the heart of ASEAN, Thailand serves as a logistics and trade gateway for companies targeting regional expansion.
Its proximity to China, Vietnam, Singapore, and Malaysia enhances cross-border business and supply chain efficiency.
With membership in regional agreements such as the ASEAN Economic Community (AEC) and RCEP, businesses registered in Thailand gain access to free trade zones and reduced tariffs across Asia-Pacific.
Strong tourism, manufacturing, and export sectors
Thailand’s economy is bolstered by three high-performing pillars:
Tourism, which attracts over 30 million visitors annually, manufacturing, particularly in automotive and electronics, and exports, including agricultural products, rubber, and processed foods.
These sectors offer countless opportunities for private limited company registration in Thailand, especially for businesses that integrate supply chain solutions, hospitality services, or international trade.
Thailand’s well-established industries also create a strong support network for new companies entering the market.
6 key advantages of incorporating in Thailand
Thailand is part of the ASEAN Economic Community, offering direct access to a regional market of over 660 million consumers.
Incorporating in Thailand positions your company within a dynamic trade bloc with rising demand across multiple sectors.
This makes the country ideal for businesses looking to scale operations across Asia, especially in industries such as logistics, digital services, and consumer goods.
Thailand offers competitive operational costs, including affordable office space, skilled labor, and support services.
Compared to many Western or regional economies, the cost of incorporation and day-to-day operations is significantly lower.
This cost advantage enables both startups and established firms to maximize return on investment while maintaining high-quality service delivery.
The Thai government actively promotes foreign investment through the Board of Investment (BOI), offering benefits like tax holidays, import duty exemptions, and 100% foreign ownership in selected industries.
The BOI also supports fast-tracked visa and work permit processes.
These policies are designed to simplify the business incorporation process in Thailand and create a welcoming environment for international companies.
Thailand's location at the crossroads of China, India, and ASEAN offers unmatched logistical advantages.
The country features world-class airports, seaports, and road networks connecting it seamlessly to major Asian markets.
This geographic edge is ideal for businesses involved in manufacturing, export, and regional distribution.
Thailand has made significant investments in transportation, energy, and digital infrastructure.
Its reliable internet coverage, data centers, and cloud services support the growth of Tech Startups and international firms alike.
The government’s Thailand 4.0 initiative further encourages innovation and digital transformation across industries.
The process for private limited company registration in Thailand is transparent and well-regulated under the Civil and Commercial Code.
Clear guidelines exist for shareholding, director appointments, and reporting obligations.
Foreign investors benefit from legal protections and predictable procedures, especially when supported by an experienced advisory partner.
6 common challenges for foreign founders
Understanding Thailand’s legal framework and compliance requirements can be challenging without local knowledge.
Regulations differ depending on business activity, ownership structure, and location.
Failure to comply with rules under the Foreign Business Act may lead to delays, fines, or registration rejection.
Some industries in Thailand are restricted to Thai majority ownership unless approved by the Board of Investment or protected under international treaties.
This may require structuring your company carefully to maintain control while remaining compliant.
Knowing where and how foreign ownership is permitted is critical for long-term strategic planning.
While English is spoken in business settings, official documents and legal processes are conducted in Thai.
Misunderstandings can occur during contract negotiations, government filings, or compliance reporting.
Working with bilingual professionals ensures accurate interpretation and clear communication throughout your incorporation journey.
Thailand has a unique business etiquette shaped by hierarchy, relationships, and indirect communication.
A lack of cultural awareness can affect negotiations, team management, and partnership building.
Foreign founders benefit from taking time to understand Thai customs, expectations, and decision-making processes.
Opening a corporate bank account in Thailand often requires in-person appointments, multiple approvals, and official documentation in Thai.
Banking procedures can vary significantly between institutions and branches.
This step can become a bottleneck without proper coordination and preparation of financial and company records.
While new company registration in Thailand is relatively fast, delays can arise from documentation errors, incomplete filings, or miscommunication with authorities.
Additional steps, such as VAT registration or work permit applications, may extend timelines.
Foreign entrepreneurs must factor in realistic timeframes and local administrative practices when planning their market entry.
Banking in Thailand: what to expect
Opening a business bank account
To open a business bank account in Thailand, your company must first be fully registered with the Department of Business Development (DBD).
Banks typically require official company documents, a tax ID, and confirmation of the company’s registered address.
Depending on the bank, authorized directors may need to attend appointments in person.
Some institutions also request evidence of business activity or client contracts before account approval.
Company registration, work permits, and local presence required
Banks often require proof of active operations and local presence before approving a corporate account.
In most cases, your company should already have a valid tax registration, business license, and physical office lease.
If foreign directors or signatories are involved, valid visas and work permits must be shown.
This is especially important for businesses with overseas shareholders or management.
Taxation and compliance requirements
All Thai companies are subject to corporate income tax (CIT) at a standard rate of 20%.
Depending on the nature of your business, you may also be required to register for Value Added Tax (VAT) and withholding tax.
VAT registration is compulsory once annual revenue exceeds THB 1.8 million, or when employing foreigners.
These tax obligations apply even to small and medium-sized businesses.
Monthly and annual filings with Revenue Department and DBD
Companies must file monthly tax returns, including VAT, social security contributions, and withholding tax.
Annual requirements include audited financial statements, corporate tax filings, and shareholder reports submitted to the DBD.
Failure to comply can result in fines or temporary suspension of business operations.
Using qualified accountants and legal advisors ensures all filings are completed accurately and on time.
Residency, visas, and foreign ownership
Without BOI support or a treaty-based exception, foreign ownership of Thai companies is limited in certain industries.
To maintain majority ownership legally, businesses must either qualify for BOI promotion or partner with Thai shareholders.
Foreign directors and employees must also secure a Non-Immigrant Business Visa, followed by a work permit.
BOI-approved companies may apply for streamlined BOI visas, which offer faster processing and extended stays.
Understanding these legal and administrative requirements is key to ensuring your company operates with full compliance from the outset.
Company registration timeline
Department of Business Development (DBD), Revenue Dept, Labor Ministry
Incorporating a company in Thailand involves coordination with several government bodies, including the Department of Business Development (DBD), the Revenue Department, and the Ministry of Labour.
Each step is time-sensitive and must follow the correct legal procedures to avoid delays.
Typical duration: 1–3 weeks
For most businesses, the company registration process takes between 1 to 3 weeks, depending on the complexity of the setup and readiness of documentation.
Factors such as foreign shareholding, BOI applications, or special licenses may extend this timeline.
Advance preparation and working with professionals can help ensure faster approval and fewer administrative setbacks.
Step-by-step: how to incorporate a company in Thailand
Most foreign-owned businesses register as a Thai Private Limited Company.
This structure offers limited liability, flexibility in management, and eligibility for tax registration and work permits.
Submit three preferred company names to the Department of Business Development (DBD) for approval.
Once approved, file the Memorandum of Association (MOA), which includes company name, objectives, registered capital, and promoter information.
Hold a statutory meeting to confirm share allocation, appoint directors, approve the Articles of Association, and designate an auditor.
File the incorporation application with the DBD within 90 days of name reservation.
Apply for a corporate tax ID at the Revenue Department within 60 days of registration or starting operations.
If revenue exceeds THB 1.8 million or you hire foreigners, register for Value Added Tax (VAT).
Enroll employees in the Social Security Fund within 30 days of their start date.
Once your company is registered, you can open a business bank account in Thailand.
Banks typically require official company documents, proof of registered address, and identification from directors or authorized signatories.
Depending on your business type, apply for any required industry-specific licenses.
Foreign directors and employees must obtain a Non-Immigrant “B” visa, followed by a work permit, to work legally in Thailand.
Thai companies must maintain shareholder and director registers, issue share certificates, and hold annual general meetings.
You are also required to file monthly tax returns, submit audited annual financial statements, and report shareholder updates to the DBD.
Thai business culture & practices
Relationship-oriented, hierarchical, and respectful
Business culture in Thailand is deeply rooted in relationships and mutual respect.
Trust is built gradually, and personal connections often play a central role in negotiations and partnerships.
The workplace tends to follow a hierarchical structure, where seniority and titles are recognized.
Showing deference to authority and maintaining harmonious interactions is key to building credibility.
Emphasis on courtesy, patience, and long-term commitment
Thai professionals value politeness, patience, and calm communication in all business dealings.
Rushed decisions or aggressive tactics can create discomfort and damage business relationships.
Business success often depends on a long-term commitment, with a focus on consistency, reliability, and respect for local customs.
How C2Z Advisory can help you succeed in Thailand
Company formation, BOI application, and visa services
We provide end-to-end support for private limited company registration in Thailand, tailored to both local and foreign investors.
From company setup to Board of Investment (BOI) applications, our team ensures your structure meets legal and strategic needs.
We also assist with visa and work permit applications, helping foreign directors and staff work legally and efficiently in Thailand.
Banking setup, tax registration, and legal support
Our advisors streamline the process of opening business bank accounts, registering for corporate tax and VAT, and enrolling in social security systems.
We ensure all regulatory filings are handled correctly and on time.
With local expertise and a global footprint, C2Z Advisory offers trusted legal and compliance support, helping your business stay secure, agile, and fully compliant in the Thai market.
Frequently asked questions
Yes, but with limitations.
Foreigners can own up to 100% of a company in Thailand under specific conditions, such as receiving BOI promotion or operating under a treaty (e.g. U.S.–Thailand Amity Treaty).
Without these, foreign ownership may be restricted in certain sectors under the Foreign Business Act.
The Board of Investment (BOI) is a Thai government agency that promotes investment in targeted industries.
Companies that qualify can benefit from full foreign ownership, tax exemptions, and simplified visa and work permit processes.
BOI promotion is especially valuable for businesses in tech, manufacturing, logistics, and innovation-led sectors.
Thai companies typically pay 20% corporate income tax on net profits.
Businesses may also be subject to Value Added Tax (VAT) at 7%, withholding tax, and social security contributions for employees.
Accurate monthly and annual filings with the Revenue Department are mandatory.
Not always.
While some business types require Thai majority ownership, many structures allow for foreign control with proper legal setup.
A Thai director is not required unless your specific business license mandates it, but you must comply with local shareholding and management rules.
The full company registration process typically takes 1 to 3 weeks, depending on documentation, business type, and whether foreign ownership is involved.
Additional steps like tax registration, VAT enrollment, and work permits may add time, but advance planning ensures a smoother timeline.