Contents
Setting up a company in Thailand as a foreigner is entirely possible — but it involves navigating the Foreign Business Act, working through shareholder structures, and understanding exactly what business activities you're legally permitted to engage in. This guide covers the practical reality from Phuket, where many entrepreneurs run businesses in hospitality, property, remote services, and import/export.
Company formation in Thailand involves legal and tax implications specific to your nationality, business type, and circumstances. This guide is an educational overview. Always consult a Thai lawyer and accountant before registering a company. Costs in this guide are estimates based on 2026 Phuket market rates.
Thai Business Structure Options for Foreigners
| Structure | Foreign Ownership | Best For | Complexity |
|---|---|---|---|
| Thai Limited Company (บริษัทจำกัด) | Up to 49% (standard) | Most foreign businesses | Medium |
| BOI-Promoted Company | Up to 100% | Tech, manufacturing, qualifying services | High (3–6 months) |
| US Treaty of Amity Company | 100% (US citizens only) | US nationals — most business types | Medium-High |
| Representative Office | Foreign parent 100% | Market research, liaison only — no sales | Medium |
| Branch Office | Foreign parent 100% | Extension of existing foreign company | High |
| DTV / LTR (remote work) | Not applicable | Working for foreign employer remotely | Low — no company needed |
Thai Limited Company Setup Process
The most common structure for foreign-based businesses in Phuket is a Thai Limited Company (บริษัทจำกัด) registered with the Department of Business Development (DBD). Under the Foreign Business Act B.E. 2542, most service businesses require Thai shareholders to hold at least 51% of shares.
-
1
Reserve a company name
Submit 3 potential names to the DBD at their website or Phuket office on Phuket Road. Names are approved within 1–3 days. Cost: free.
-
2
Draft Memorandum of Association (MOA)
Defines company objectives, registered address, share capital, and initial shareholders (minimum 3 promoters). Your lawyer handles this. Registered capital minimum is ฿1,000,000 for a standard company — higher for work permit requirements (฿2,000,000 per work permit is the practical minimum).
-
3
Hold statutory meeting and register
All initial shareholders sign before a notary. Submit registration documents to DBD. Filing fee: approximately ฿5,000–฿14,000 depending on registered capital. Processing: 3–5 business days.
-
4
Apply for VAT registration (if applicable)
If your annual turnover will exceed ฿1,800,000, VAT registration is mandatory. Apply at the Phuket Revenue Department on Phraya Nakharin Road (076-212120). Processing: 1–2 weeks.
-
5
Open company bank account
Take your company registration documents, company seal, and director's passport to KBank (Yaowarat Road, Phuket Town) or Bangkok Bank (Phangnga Road). Corporate accounts take 1–5 days to open. You'll need the original certificate of incorporation plus shareholder list.
-
6
Apply for work permit (if working in company)
With company registration and ฿2,000,000+ registered capital, apply for a work permit at Phuket Labour Department on Wichit Songkram Road. You'll also need a Non-Immigrant B visa first — apply at Phuket Immigration (Chalong Circle bypass area). See our full work permit guide.
Setup and Ongoing Costs
| Cost Item | Amount (฿) | Notes |
|---|---|---|
| Company registration (DBD fees) | ฿5,000–฿14,000 | Based on registered capital |
| Lawyer setup fee | ฿15,000–฿60,000 | Varies by complexity; includes MOA, documents |
| Registered address (if needed) | ฿3,000–฿8,000/year | Phuket Town or Chalong service providers |
| Work permit application | ฿750–฿1,500 | Government fee per permit per year |
| Non-Immigrant B visa | ฿2,000 | Per single entry |
| Monthly accounting | ฿5,000–฿15,000 | Essential — quarterly VAT, annual audit |
| Annual audit | ฿15,000–฿35,000 | Mandatory for all Thai limited companies |
| Corporate income tax rate | 20% on net profit | Reduced rates for SMEs |
| VAT (if registered) | 7% on sales | File monthly/quarterly via Phuket Revenue Dept |
Many foreigners use Thai nominees (Thai nationals who hold shares on behalf of the foreigner) to satisfy the 51% Thai ownership requirement. This is a legal grey area — Thailand's Foreign Business Act explicitly prohibits using nominees to circumvent its restrictions. In practice, nominee structures are common and rarely prosecuted, but they create real legal risk, especially in disputes. A legitimate alternative is a genuine Thai business partner who holds and controls their 51%. Get proper legal advice before choosing your structure.
Work Permit Requirements
This is the most misunderstood aspect of Thai company formation. Having a Thai company registered in your name does not give you the right to work in Thailand. You still need a Non-Immigrant B visa and a work permit issued by the Phuket Labour Department.
Requirements for your company to sponsor your work permit
- Registered capital: Minimum ฿2,000,000 per work permit (effectively ฿2M for the first foreign employee, ฿2M additional for each subsequent one)
- Thai employees: 4 Thai employees per foreign work permit (the "4:1 ratio")
- Tax filings: Company must be in good standing with Revenue Department
- Business activity: Work permit is issued for specific activities — job description must match
The Phuket Labour Department is on Wichit Songkram Road. Processing time for a new work permit is approximately 7–14 business days. Annual renewal requires a fresh application.
Alternatives to a work permit
If you're working remotely for an overseas employer and simply need to be in Thailand, you may not need a Thai company or work permit at all. The DTV (Destination Thailand Visa) is specifically designed for this: 180-day stay, renewable, ฿10,000 per entry, designed for remote workers and digital nomads. See our DTV guide. The LTR Work from Thailand Professional category also covers remote workers with verified overseas income. See the LTR visa guide.
BOI-Promoted Company
The Board of Investment (BOI) promotes certain business categories for foreign investment, with significant benefits:
- 100% foreign ownership (no Thai partner required)
- Corporate income tax holiday (3–8 years depending on zone and activity)
- Import duty waivers on machinery
- Work permits processed faster with fewer restrictions
- Land ownership rights (usually denied to foreign companies)
Qualifying activities include: technology and software, manufacturing, agriculture and food processing, healthcare services, and specific tourism categories. BOI applications take 3–6 months and require a formal investment proposal. The BOI office in Phuket is at Surin Plaza on Yaowarat Road. Most service businesses (consulting, hospitality management, retail) don't qualify for BOI promotion.
Doing Business in Phuket Specifically
Tourism and hospitality: One of the most common business areas for expat entrepreneurs. Hotel/villa management, tour operations, and restaurants are available to foreign businesses but require specific licenses (Tourism Authority of Thailand registration, hotel license, food handling permits). The tourism industry in Phuket is heavily regulated — get proper guidance before investing.
Property: Foreign companies generally cannot own land in Thailand. Pool villas and resort properties are typically held under long-term lease (30+30+30 years) rather than freehold. Consult a property lawyer specialising in Phuket resort law before entering property development.
Remote services / consulting: If you're providing services to foreign clients (design, marketing, software, consulting), a Thai company can invoice overseas clients in foreign currency, remit to Thailand, and pay you a local salary. This is a legitimate structure used by many Phuket-based professionals. However, consider whether the overhead of Thai company administration is worth it vs. maintaining your home-country company and using the DTV visa.