With its strategic location, growing digital economy, and access to ASEAN markets, Thailand is an attractive hub for foreign entrepreneurs and investors. But starting a business here comes with a unique set of legal, cultural, and operational requirements. Whether you’re opening a regional office, launching an e-commerce brand, or setting up a service company—here’s what you need to know to set up your business smoothly and compliantly.
- Understand Foreign Ownership Rules
Foreigners are generally restricted from owning more than 49% of a Thai company unless they receive special permission.
Your main options:
- Thai Limited Company (with Thai majority shareholders)
- BOI Promotion (Board of Investment) – allows 100% foreign ownership for eligible industries
- Foreign Business License (FBL) – approval required under the Foreign Business Act
- US Treaty of Amity – allows 100% ownership for US citizens in certain sectors
💡 Interloop can advise on the best structure for your industry, ownership goals, and compliance.
- Choose the Right Business Structure
The most common structures for foreigners are:
- Limited Company (Ltd.) – similar to a private limited company; requires at least 2 shareholders
- Representative Office – non-revenue-generating; used for liaison or research
- Branch Office – can generate income, but considered an extension of the foreign company
- BOI Company – eligible for tax and visa benefits if you qualify
✅ Tip: Most startups and SMEs go with a Limited Company + local partners, unless they qualify for BOI.
- Capital Requirements & Bank Accounts
To hire foreign staff or apply for work permits, the company must show a minimum registered capital, typically:
- 2 million THB per foreign employee
- BOI companies may be exempt or have reduced capital requirements
You’ll also need to:
- Open a corporate bank account in Thailand
- Deposit the capital before registering with the Ministry of Commerce
💼 Interloop can assist with bank introductions, document preparation, and fund transfers.
- Legal Registration Process
The basic steps include:
- Reserve your company name
- Prepare & file the company’s Articles of Association
- Register with the Department of Business Development (DBD)
- Obtain tax ID, VAT registration, and social security number
- Open a company bank account
🕒 Timeline: 1–3 weeks depending on structure
- Visas & Work Permits
You cannot legally work in Thailand without a Non-Immigrant B visa and a Work Permit.
Requirements:
- Registered Thai company
- 2M THB capital per foreigner
- At least 4 Thai employees per work permit (non-BOI)
- Proper office address and lease
🚀 BOI companies can bypass many of these requirements and get fast-track visa processing via the BOI One Stop Service Center.
- Tax & Compliance Obligations
All companies in Thailand must comply with:
- Corporate income tax (20%)
- Withholding tax, VAT (7%), and Social Security contributions
- Annual audits by a certified Thai auditor
- Monthly filings for payroll and VAT
📊 Digital tools like FlowAccount or PEAK can simplify this. Interloop also provides back-office support and outsourced accounting.
- Hiring & HR Compliance
Thai labor laws are strict on contracts, benefits, and social security. Key points:
- All employees must be registered with the Social Security Office (SSO)
- Standard work week: 48 hours max, with overtime limits
- Paid leave, holidays, and severance rules must be followed
- Work regulations must be posted if you have 10+ staff
💡 Use an Employer of Record (EOR) service if you want to test the market before fully registering your entity.
- Cultural & Practical Tips
- Always work with bilingual lawyers or consultants
- Thai partners and relationships are key to business success
- Be mindful of Thai customs and communication styles
- Keep your documents and licenses updated—compliance is essential
Final Thoughts
Setting up a business in Thailand as a foreigner is 100% possible—and often highly rewarding—if you understand the process, follow the rules, and choose the right partners.
At Interloop Solutions & Consultancy, we guide you every step of the way:
✅ Business structure & licensing
✅ BOI registration
✅ Work permits & visas
✅ Accounting & HR setup
✅ Market entry & localization
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