Thailand has emerged as one of Southeast Asia’s most dynamic business hubs, offering strategic access to regional markets, government incentives, and a rapidly growing economy. For foreign entrepreneurs, the potential is significant—but establishing a business in Thailand requires navigating unique legal, regulatory, and compliance frameworks.
At Kshetry & Co. Legal Advisors (Kshetry Innovate Co. Ltd in Thailand), we assist international investors from the USA, UK, Europe, and beyond in setting up legally compliant, profitable ventures, ensuring a smooth and sustainable entry into the Thai market.
1. Understanding Foreign Ownership Rules
Foreign ownership in Thailand is regulated under the Foreign Business Act (FBA). Key considerations include:
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Foreign investors typically hold up to 49% ownership, while Thai nationals must hold at least 51%.
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Certain sectors allow 100% foreign ownership, particularly under Board of Investment (BOI) promotions, designed to attract international investment.
- Strategic planning is essential to ensure compliance and maximize benefits from incentives.
2. Choosing the Right Business Structure
Foreign entrepreneurs can select from several legal structures depending on their business objectives:
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Private Limited Company (Co., Ltd.) – The most common entity for foreign investors; requires at least 3 shareholders and provides limited liability protection.
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Branch Office or Representative Office – Suitable for foreign parent companies expanding into Thailand.
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BOI-Promoted Company – Offers benefits including tax exemptions, streamlined licensing, and full foreign ownership in approved industries.
3. Capital & Licensing Requirements
Setting up a company in Thailand involves meeting both capital requirements and obtaining the necessary licenses:
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Minimum registered capital requirements vary and are often higher for foreign-owned entities.
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Certain sectors—such as services, consultancy, and trading—require special licenses under the FBA.
- Proper documentation and licensing ensure your company operates legally and avoids regulatory penalties.
4. Tax & Compliance
Thailand’s tax and compliance framework is essential to understand for long-term business sustainability:
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Corporate income tax is 20%, with potential reductions for small enterprises.
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Businesses must maintain accurate accounting records, submit annual financial statements, and comply with the Thai Revenue Department regulations.
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VAT registration is mandatory if your annual turnover exceeds THB 1.8 million, with periodic filing required.
Adhering to compliance requirements safeguards your company from fines, operational disruptions, and reputational risks.
5. Visa & Work Permits
Foreign business owners and employees must comply with immigration regulations:
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Non-Immigrant Business Visa (B Visa) is required for entry and business operations.
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Work Permits must be tied to the Thai company, ensuring lawful employment of foreign nationals.
- Companies must also meet staffing requirements, including employing a minimum number of Thai nationals per foreign employee, in line with local labor laws.
Conclusion
Thailand offers immense opportunities for foreign investors and entrepreneurs seeking market expansion, tax benefits, and access to regional trade. However, success depends on understanding local laws, ownership restrictions, licensing, and compliance obligations.
At Kshetry & Co. Legal Advisors, our international team provides end-to-end business advisory services, including company registration, BOI application support, tax advisory, and immigration services. We ensure your Thailand business journey is compliant, efficient, and growth-focused.
📌 Ready to expand your business into Thailand?
👉 Connect with us today for expert legal guidance tailored to your goals.
