Types of company in Thailand
Which legal structure fits your business in Thailand, what each one allows, and what Plizz charges to set it up.
The type of company you choose in Thailand decides who can own it, what it may do, how much capital it needs and how it is taxed. Most founders choose a Thai limited company. Foreign-owned businesses often add BOI promotion, a Foreign Business License (FBL) or, for Americans, the US-Thai Treaty of Amity. Plizz prepares the documents and files the registration with the Department of Business Development (DBD) for you.
Types of company in Thailand
Plizz registers the following types of company:
Limited company
A company with at least 2 shareholders. Each shareholder’s liability is limited to any amount still unpaid on their shares.
Fixed fee of THB 50,000
Representative office
The office of a foreign company in Thailand that supports its head office, for example with market research or quality control. It cannot earn revenue.
From THB 60,000
BOI company
The Thailand Board of Investment (BOI) promotes investment in targeted activities. A BOI-promoted company can be 100% foreign-owned and, depending on its activity, can receive corporate income tax exemptions and relief from the usual work permit rules (4 Thai employees and THB 2 million of capital per foreign employee).
From THB 20,000 for the preliminary assessment; the full application is quoted separately
Other business structures in Thailand
Limited partnership
A partnership with at least one partner whose liability is unlimited (the managing partner) and one or more partners whose liability is limited to their contribution. Only an unlimited-liability partner may manage the business.
Branch office
An extension of a foreign company that can earn income in Thailand. It is not a separate legal entity, so the head office abroad is liable for the branch’s debts and obligations in Thailand.
Sole proprietorship
A business owned and run by one person, with no legal distinction between the owner and the business. The owner is personally liable for all of its debts.
Register a company under the US-Thai Treaty of Amity
Under this treaty, US citizens and US-majority companies can own a majority or all of a Thai company and receive the same treatment as Thai companies, except in a few reserved sectors such as communications, transport, banking, land and natural resources, and domestic trade in Thai agricultural products.
Requirements to register a limited company
- There is no general minimum capital for a Thai-owned company, but each share needs a par value of at least THB 5.
- You need at least 2 shareholders (promoters).
- At least 25% of the registered capital must be paid up.
- When foreigners hold shares, the Department of Business Development (DBD) may ask for evidence of the paid-up capital, such as a bank statement.
- A foreign-majority company generally needs at least THB 2 million of capital (THB 3 million for activities on the Foreign Business Act lists), and each work permit generally needs THB 2 million of paid-up capital.
- A foreigner can also form a Thai-majority company, in which Thai shareholders hold at least 51% and foreign shareholders at most 49%.
- DBD registration fees depend on the registered capital.
