How to Establish a Foreign Company in Thailand

Foreign-owned Company Thailand – Ever wonder what it takes to start a business in Thailand? Sometimes called the Land of Smiles, this Southeast Asian country isn’t just given this nickname because of kind locals and friendly greetings; Thailand is also welcoming to overseas businesses wanting to plant new roots abroad. Read below for a step-by-step guide on how to successfully establish a foreign company in Thailand.

Top 6 steps to establish a foreign company in Thailand

Ask yourself, “Why Thailand?”

Before spending millions on investing in another country, it’s best if you prepare with all the information available concerning how Thailand works, the potential benefits, and challenges. You wouldn’t want to operate your new business at a loss. Consider the foreign ownership regulations and government incentives that support your venture. 

For starters, Thailand’s Foreign Business Act (FBA) categorizes businesses into three lists and has varying degrees of restrictions for each list. If your business is considered restricted under Thai law, then you’d need to obtain a Foreign Business License (FBL). On the other side, Thailand has a Board of Investment (BOI) that promotes foreign investment by providing incentives to interested parties.

Choose the business structure that works for you

There are three main business structures that are commonly used by foreign companies in Thailand:

  • Limited Company (Ltd)

This is for a smaller business, requiring a minimum of three shareholders and one director. A Ltd legally separates the company from its individual owners, protecting the owners’ assets from debts and liabilities. Typically, the minimum capital required is USD 60,000, which may be higher if restricted by the FBA.

  • Branch Office

This is perfect if you already have a business headquartered in another country. The catch is that you have to prove how this foreign branch can turn a profit.

  • Representative Office

This is only for non-revenue-generating activities that support your main business, such as market research or supply chain oversight.

Register your company sooner rather than later

Once you’ve decided which business structure you choose to implement, it’s time to register your company with the Department of Business Development (DBD). It’s recommended that you reserve your company name before others take it, since the name must be one of a kind and compliant with Thai regulations.

When all is said and done, next on the list is preparing the Memorandum of Association (MOA), containing the company’s foundational values and objectives. Additionally, you need to include details of your company’s business address, either physical or virtual, along with the names of your shareholders and directors. If successful, you can finally conduct a statutory meeting where an auditor will be appointed to you.

Obtain necessary documents and permits

Now that your foreign company is registered with the DBD, there are a couple of other records you need to fill out. The first is a tax ID with the Revenue Department. The second is a VAT registration, especially if you employ foreign workers or your annual revenue exceeds USD 55,600. On top of that, work permits are mandatory for foreign workers, along with registration at the Social Security Office (SSO). Depending on your type of business, you’ll also need a license to operate legally in Thailand.

Open a Thai bank account

To open a business bank account, you need to submit company documents, including a tax ID card, copies of your company’s MOA, ID cards or passports of shareholders, a minimum deposit, and others. Having an active Thai account will ease the handling of payroll and local transactions.

Hire and market on the appropriate channels

So, you’ve handled all the paperwork. Your foreign-owned company is registered under Thai law. Your Thai bank account is active. What now? Well, it’s time to find employees and build local relationships. To begin, start with understanding the country’s labor laws, including working hours and monthly minimum wages, which range from USD 291.9 to USD 346.5 in 2025. 

Last but not least, it’s time to improve your business’s visibility. You can do this by doing market research beforehand, analysing Thailand’s diverse consumer landscape, and constructing a digital marketing strategy that aligns with local trends. All your hard work will prove fruitless if no one realizes your business exists, or they don’t know what products and services you offer. This is where local partners and business consultants come in.

Tips to break into the Thailand market

It’s no shame to ask for assistance. There are a lot of administrative tasks and red tape to keep your overseas business afloat. On the contrary, having a reliable support in Thailand will guarantee a higher chance of your foreign company’s success. With that in mind, here are just a couple of tips to bolster your profit.

  • Connect with local partners

To help your marketing efforts, local partners are a surefire way to ease the navigation of local regulations. They’ll also keep you abreast on current trends and consumer behavior. You can find important connections by joining networking events with local industry groups or through dependable third parties.

  • Seek expert advice

Rather than going in blind and burning your budget, it’s highly recommended that you consult with legal and business professionals. In Double M, we provide services from tax planning, legal drafting, visa consultation, to license registration. We’ll search local partners that best suit your requirements and make sure your foreign-owned company has a smooth market entry in Thailand.

Work with Double M to make sure your business in Thailand gets off the ground

Starting a business in Thailand can be daunting, but it isn’t impossible. By following these steps: knowing the ins and outs of the country, choosing the right company structure, complying with local regulations, and hiring on the appropriate channels, you’re only one step away from success in one of Southeast Asia’s most vibrant economies. Now that you know the necessary steps for establishing a foreign company in Thailand, take the next step by contacting us at Double M, and we’ll assist you with all your business inquiries. With our support, we’ll make sure your business stands out in Thailand’s competitive market!