Global Law Experts Logo

Find a Global Law Expert

Specialism
Country
Practice Area
awardsr

Awards

Since 2010, the Global Law Experts annual awards have been celebrating excellence, innovation and performance across the legal communities from around the world.

Investment: Corporate Structure and Investment Opportunities in Thailand

posted 3 months ago

Thailand represents a dynamic and promising economic environment for both local and international investors. Understanding the process will benefit entrepreneurs and corporations looking to establish a presence in Thailand.

Incorporation Option:

Investors in Thailand can choose from several types of business entities, including sole proprietorship, partnership, and limited company. Among these, the limited company stands out as the most popular form of incorporation due to its favorable features like limited liability to shareholders and flexibility in management and operations.

Registered Capital:

In terms of capital requirement, the law mandates for Thai companies a minimum registered capital based on the type of business and its specific operational needs.

Minimum Investment Capital:

The legally permissible minimum registered capital for a limited company incorporated under Thai law is 10 baht. However, in practice, no businesses opt for such a low capital amount as it does not reflect the true nature of business operations and may lead to business partners and clients perceiving the company as financially unstable.

However, foreign businesses in Thailand require a minimum registered capital of 2 million THB for non-restricted operations and 3 million THB for those under restriction by the Foreign Business Act. Thai-owned companies are not subject to these requirements.

Action Steps After Establishing a Limited Company:

To ensure your company operates businesses smoothly and in compliance with national law, there are several important steps to take once you have established a company. Those include:

  • Open a corporate bank account: to manage financial activities effectively and maintain financial transparency
  • Social security registration: to comply with legal requirements, manage employee contributions and claims
  • Visa and work permit application for foreign employees: to enter Thailand to do business, a non-immigrant B visa and work permit are required

Shareholder:

Thai Majority-Owned Limited Company

In companies where Thai nationals hold more than 50% of the shares, the enterprise is classified as a Thai-majority-owned limited company. Generally, these companies face fewer operational restrictions in Thailand.

Foreign Majority-Owned Limited Company

A business is considered foreign-owned if at least 50% of its ownership is foreign-owned. Although foreign investors are generally allowed to fully own such companies, the Foreign Business Act specifies certain sectors, such as those involving natural resources or national security and some services, which are exclusively reserved for Thai nationals.

In these sectors, foreign investors are restricted to owning a maximum of less than 50% of the company’s shares. Exceptions to this restriction include situations where a Foreign Business License/Foreign Business Certificate is issued, or when the company receives a promotion from the BOI or benefits under international agreements like the Thai-U.S. Amity Treaty. These exceptions enable foreign investors to own a majority or even 100% of the company’s shares in otherwise restricted business sectors.

Business Types:

In Thailand, the business landscape offers distinct operational freedoms and restrictions for Thai nationals and foreign investors.

  • Thai nationals – Thai nationals may face fewer restrictions on the types of business they can operate, however, certain businesses such as import-export or restaurant businesses still require specific licenses.
  • Foreign investors – Foreign investors are free to establish and operate businesses in Thailand. Nevertheless, the Foreign Business Act categorizes businesses into 3 lists in which foreign operators must obtain a Foreign Business License or Certificate if one will engage in a business activity that falls under the scope of lists nos. 2 and 3 (e.g. restaurant, construction, hotel, services business, etc.). Business and technology transfer plans are required to be submitted when applying for a Foreign Business License. If foreign investors are promoted by the BOI or their nations are part of international agreements with Thailand, they become eligible to apply for Foreign Business Certificates.

This license/certificate permits them to engage in business activities that are otherwise highly restricted in Thailand, providing them with significantly more operational flexibility. Still, certain businesses require specific licenses.

Special Incentives:

The Board of Investment of Thailand (BOI) provides an attractive range of incentives, for entrepreneurs who engage in a particular business, designed to encourage foreign investment, especially in high-tech industries, research and development, and environmentally friendly projects. These compelling benefits include tax incentives (e.g. reduction or exemption of corporate income tax (up to 8 years) or import duty on machinery and raw materials), and non-tax incentives (e.g. expedited work permit and visa processes or land ownership rights).

Besides the BOI, the business operator or investor who engages in particular industries (e.g. advanced robotics, aviation, digital technology, etc.) and operates within the promotional economic zone within the Eastern Economic Corridor (EEC) area which all are situated in either Chachoengsao, Chonburi, or Rayong provinces, can apply for incentives; i.e. tax incentives and non-tax incentives, which include extended tax holidays, grants and subsidies for R&D, expedited work permit and visa processes, from the EEC.

It is essential to note that if you have already received incentives from the BOI, you can only apply for incentives that are not covered by the BOI Act from the EEC. However, if you have already received incentives from the EEC, it will be prohibited for you to apply for BOI incentives going forward.

Taxation:

In Thailand, there are key tax considerations for a limited company. Those include:

  • Corporate Income Tax: It is calculated from net profit. The rate is currently fixed at 20%, however, if the business is an SME, it qualifies for a reduced tax rate. The business operators are required to submit corporate income tax semi-annually and annually.
  • Value Added Tax (VAT): A limited company has the option to register for VAT, except for companies that meet specific criteria that are required for VAT without exception. By registering VAT, an additional 7% tax will be added to the price of goods and services. A company must file a detailed VAT return monthly, even if there are no transactions in that month. Failure to file shall result in penalties.
  • Withholding Tax: the obligation to deduct a specific percentage of tax depends on what type of payment is being made and to whom. However, if a company receives incentives from the BOI, its tax obligations, among others, may be reduced or even exempted. Stakeholders must evaluate the criteria applicable to their company.

Land and Property:

Unlike Thai citizens or entities that are entitled to own land, foreigners are not eligible to do the same. However, there are practical solutions for foreign entities including:

  • Long-term lease: Land can be leased for up to 30 years and it is also renewable.
  • Condominium ownership: Foreigners can purchase and be the sole owner of condominium units. However, such condominiums cannot have more than 49% of their units owned by foreigners. In light of this, the government is in discussion to increase the maximum foreign condominium unit ownership from no more than 49% of all condominium units to no more than 75%.
  • Business investment: Foreigners whose investment meets particular conditions and the minimum amount may own land for residential purposes. Also, foreign juristic persons promoted by the BOI can own land that shall be used in their promoted activities, such land can be used as their staff accommodation.
  • Building ownership: Although foreigners are generally prohibited from owning land, they can own a building.

Stock Market Investments:

Foreigners are welcome to participate in the Stock Exchange of Thailand (SET), with opportunities to invest across a broad range of sectors. Key points to consider include:

  • Foreign ownership limits on individual stocks vary by industry and company.
  • Some brokers may require in-person account openings, but others are beginning to offer digital solutions to streamline this process.
  • Access to emerging markets with potential, particularly in some industries like energy, technology, and consumer goods.

Overall, establishing a company requires navigating multiple steps, gathering the necessary documentation, and addressing complex details. Investors must ensure they comply with all requirements to prevent any potential issues. Thailand presents a compelling investment landscape for foreign investors. With its strategic location, dynamic economy, and supportive government policies, the country offers abundant opportunities for businesses to flourish. Foreign investors can successfully establish a presence in Thailand and tap into the nation’s economic growth potential.

Key takeaways:

  • Incorporation options: Carefully consider the most suitable business entity based on the business goals.
  • Foreign ownership restrictions: Be aware of limitations in certain sectors and explore options for obtaining necessary licenses or exemptions.
  • Business incentives: Leverage the generous incentives provided by the BOI and the relevant sector to reduce costs and enhance profitability.
  • Tax considerations: Understand the tax implications of operating a business in Thailand and seek professional advice to ensure compliance.
  • Foreign land and property ownership: Foreigners can own land and property in Thailand under particular conditions.
  • Legal and administrative requirements: Adhere to the necessary legal and administrative procedures to maintain a smooth and compliant operation

Author

Find the right Legal Expert for your business

The premier guide to leading legal professionals throughout the world

Specialism
Country
Practice Area
LAWYERS RECOGNIZED
0
EVALUATIONS OF LAWYERS BY THEIR PEERS
0 m+
PRACTICE AREAS
0
COUNTRIES AROUND THE WORLD
0

Join

who are already getting the benefits
0
Sign up for the latest legal briefings and news within Global Law Experts’ community, as well as a whole host of features, editorial and conference updates direct to your email inbox. Naturally you can unsubscribe at any time.

Online Casino Reviews

  • Freeroll Poker Tournaments For Real Money
  • Australian Online Casino Real Money
  • Best Slot App To Win Real Money
  • Online Casino Real Money Australia
  • Best Paying Online Pokies
  • Wizard Of Oz Online Slots
  • All Slots Casino Mobile
  • Best Online Poker App Real Money
  • Best Online Casino To Play Roulette
  • Is Online Casino Legal
  • Online Casino That Accepts Paypal
  • Play Roulette For Real Money
  • Slot Apps To Win Real Money
  • Real Money Slots Online Usa
  • Safe Online Casino
  • Wizard Of Oz Slots
  • Real Online Pokies Nz
  • Biggest Online Casino In The World
  • Online Casino Pay With Paypal
  • Online Casino That Accept Paypal
  • Online Casino Canada Real Money
  • 3 Card Poker Online Real Money
  • Online Slots Real Money Canada
  • Best Online Poker Sites For Real Money
  • Real Money Poker App Android Usa
  • How To Make Money From Online Casino Bonuses
  • Real Money Poker App Iphone
  • How To Play Blackjack Online For Real Money
  • Best Slots To Play
  • Top 10 Online Pokies
  • Best Poker Apps Real Money
  • Online Casino Legal
  • Best Payout Online Casino Uk
  • Win Money Online Slots
  • Online Poker Nj Real Money
  • How To Win Online Slots
  • Casino Gaming License
  • Play Real Pokies Online
  • Blackjack Sites For Real Money
  • Real Money Casino Games For Android
  • Best New Online Slots
  • Flaming 777 Slots Games
  • Online Blackjack With Live Dealers
  • How To Play Online Slots
  • Facebook Casino Games Real Money
  • Online Casino With No Minimum Deposit
  • How To Beat Online Slots
  • Online Casino License
  • The Big Payback Slots
  • Royal Vegas Online Casino Withdrawal
  • Online Casino Minimum Deposit 5
  • Online Pokies Real Money Australia
  • Las Vegas Usa Online Casino
  • Real Money Poker App Android
  • Wheel Of Fortune Slots
  • Game Of Thrones Slots
  • Online Poker Real Money Usa Legal
  • Best Online Casino European Roulette
  • Blackjack Online Real Money Paypal
  • Online Video Poker Real Money Usa
  • How To Create An Online Casino
  • Lucky Nugget Online Casino Mobile
  • How To Withdraw Money From Online Casino
  • Platinum Play Online Casino Download
  • Online Casino For Usa Players
  • Best Online Casino Usa Real Money
  • Online Roulette Real Money Usa
  • Best Real Money Poker Sites
  • Android Slots Real Money
  • How To Start An Online Casino Business
  • How To Start An Online Casino
  • How To Start An Online Gambling Site
  • Best Online Casino For Blackjack
  • Play Baccarat Online For Money
  • Online Pokies New Zealand
  • Best Slots To Play At Golden Nugget
  • Slots Of Vegas Online Casino
  • Best Online Pokies Site
  • How To Beat Online Roulette
  • New Zealand Online Pokies
  • Online Poker Mobile Real Money
  • Which Online Slots Payout The Most
  • Is Online Casino Legal In India
  • Online Casino Software For Sale
  • Best Online Casino For Craps
  • Hard Rock Casino Slots
  • Win Real Money Online Pokies
  • Online Casino With Highest Payout Percentage
  • Poker Apps With Real Money
  • Online Roulette Real Money Review
  • Full Tilt Poker Real Money
  • Online Casino 5 Dollar Minimum Deposit
  • Online Roulette With Real Money
  • Best Online Roulette For Real Money
  • I Migliori Casino Online Italiani
  • Best Payout Online Slots
  • How To Play Baccarat Online
  • Play Casino Card Game Online
  • Play Blackjack Online For Real Money
  • Best Paying Online Slots
  • Casino License Cost
  • Online Poker Real Money California
  • Safe Online Casino Australia
  • Online Roulette Australia Real Money
  • Online Poker Real Money Texas
  • Online Roulette Real Money Paypal
  • Online Slots Australia Real Money
  • Golden Nugget Online Casino Review
  • Casino Games To Win Real Money
  • Online Pokies Australia Real Money
  • Online Gambling Blackjack Real Money
  • Win Real Money Playing Slots
  • How To Win Roulette Online
  • Aristocrat Pokies Online Real Money
  • Hollywood Casino Online Slots
  • Play Online Keno For Real Money
  • What's The Best Online Casino
  • Triple Double Diamond Slots
  • Play Roulette Online With Real Money
  • Roulette Online For Real Money
  • Play Roulette Online Real Money
  • Best Online Pokies Real Money
  • Big Red Pokies Online
  • How To Win At Online Blackjack
  • What Is The Best Online Roulette Site
  • Real Money Online Pokies
  • Spin To Win Slots
  • Ruby Slots Online Casino
  • Wheel Of Fortune Online Casino
  • Spin Palace Flash Casino Online
  • Online Poker Real Money App
  • Online Casino With Paypal Deposit
  • How To Win At Online Roulette
  • Can You Win Real Money On Slot Apps
  • Is Ignition Casino Safe
  • Online Casino Blackjack Real Money
  • Online Casino Win Real Money Usa
  • How To Make Money Online Casino
  • Online Casino Real Money Reviews
  • Slot Games To Win Real Money
  • Jackpot City Online Casino Download
  • Online Pokies Real Money
  • Casino War Online Real Money
  • Online Casino No Minimum Deposit
  • Play Wheel Of Fortune Slots Online
  • Best Online Casino Game To Win Money
  • Online Casino Without Wagering Requirements
  • Online Slots For Real Money Usa
  • Legal Online Casino Australia
  • How Do Online Slots Work
  • Best Online Casino For Us Players
  • Online Play Casino Roulette Game
  • Online Blackjack Real Money Australia
  • Real Casino Games Real Money Online
  • Online Slot Machines Real Money Paypal
  • The Best Online Casino For Roulette
  • What Online Casino Pays Out The Most
  • Start Your Own Online Casino
  • Legal Online Casino
  • Online Live Roulette Casino Game
  • Playing Blackjack Online For Real Money
  • Online Penny Slots Real Money
  • Best Online Blackjack For Money
  • How To Win Online Roulette
  • Real Money Poker Sites Usa
  • Best Time To Play Slots
  • Online Keno For Real Money
  • Best Payout Online Slots Uk
  • Online Slots Real Money Reviews
  • Best Online Pokies Nz
  • What States Allow Online Gambling
  • Best Real Money Poker App
  • Online Slots To Win Real Money
  • Real Money Slots App Iphone
  • Jackpot City Flash Casino Online
  • Ignition Casino Legit
  • All Star Slots Casino
  • How To Play Online Casino
  • Real Time Gaming Slots
  • Online Video Poker Real Money
  • How To Play Roulette Online For Money
  • How To Win On Online Slots
  • Age Of Gods Slots
  • Online Real Casino Money Games
  • Best Online Slots To Play
  • Online Poker California Real Money
  • Is Jackpot City Casino Legit
  • How To Win At Online Slots
  • Play Poker For Real Money
  • Safe Online Pokies Australia
  • Best Way To Play Slots
  • How To Play Casino Online
  • Play Online Roulette For Money
  • Online Casino Australia Real Money
  • Which States Allow Online Gambling
  • Play Keno Online Real Money
  • How To Win Online Blackjack
  • Online Blackjack With Real Dealers
  • How To Open Online Casino
  • What Are The Best Online Slots To Play
  • Big Win Casino Slots
  • Spin Palace Online Casino Australia
  • Best Slots To Win On
  • Casino Slots Win Real Money
  • Slots Magic Online Casino
  • Blackjack Online For Real Money
  • Slot Machine App Win Real Money
  • Online Casino Not Paying Out
  • Slots That Pay Out Real Money
  • Online Pokies Australia Reviews
  • Online Casino Minimum Deposit 1
  • Jackpot City Online Casino Review
  • Live Dealer Baccarat Online Casino
  • Online Casino Apps For Android
  • Online Casino Paypal Deposit Australia
  • Online Casino With Live Dealer
  • How To Play Blackjack Online
  • Slots To Win Real Money
  • Wheel Of Fortune Online Slots
  • Play Quick Hit Slots Online
  • Can You Count Cards In Online Blackjack
  • Palace Of Chance Online Casino
  • How To Play Roulette Online
  • Good Slots To Play
  • Which Online Casino Pays Out The Most
  • Heart Of Vegas Casino Slots
  • Best Online Casino For Canadians
  • Australian Online Pokies Real Money
  • Mohegan Sun Online Casino Nj
  • Online Casino Live Games Best Uk
  • Best Online Casino Australia Reviews
  • Play Pokies Online Real Money
  • Best Online Casino For Usa Players
  • How To Win Online Casino
  • Play Blackjack For Real Money
  • Best Slots On Bovada
  • Online Keno Real Money Usa
  • Online Slots Real Money Paypal
  • Best Poker Sites For Real Money
  • Safe Casino Sites
  • The Best Online Slots
  • Play Keno For Real Money
  • Real Online Pokies Australia
  • Queen Of The Nile Slots
  • Mummys Gold Casino Online Casino
  • Play Keno Online For Real Money
  • Best Poker Websites Real Money
  • Lucky Nugget Online Casino Download
  • Best Online Casino For Roulette
  • Play Roulette For Money Online
  • Video Slots Mobile Casino
  • Best Time To Play Online Slots
  • Best Real Money Online Poker
  • Play Blackjack Online With Friends
  • Play Baccarat Online For Real Money
  • Is Silver Oak Casino Legit
  • Big Fish Casino Real Money
  • Can You Win Real Money On Caesars Slots
  • Game Of Thrones Slots Casino
  • Best Online Slots Payout Percentage
  • Play Online Pokies For Real Money
  • Play Pokies Online Australia
  • High 5 Casino Real Slots
  • The Best Online Pokies
  • Online Pokies That Accept Paypal
  • Heart Of Vegas Slots
  • How To Play Online Roulette
  • Best Poker App Real Money
  • Best Online Casino Fast Payout
  • Best Slots At Wind Creek Casino
  • Online Casino 10 Minimum Deposit
  • Play Roulette Online For Money
  • Us Real Money Poker Sites
  • How To Win In Online Casino
  • Best Online Pokies Australia Review
  • Where To Play Roulette Online For Real Money
  • How To Beat Online Casino Slot Machines
  • Highest Payout Online Slots
  • Best Paying Online Casino Slots
  • Golden Tiger Online Casino Review
  • Online Casino With Live Dealers
  • Play Roulette Online For Real Money
  • Best Slots To Play At Casino
  • Slot Machine Games Win Real Money
  • Most Popular Online Casino Games
  • Casino Slots App Real Money
  • Online Casino Real Money Canada
  • Online Real Money Pokies
  • Online Roulette Game Real Money
  • Online Casino Roulette Real Money
  • Best Place To Play Roulette Online
  • Online Casino Book Of Ra Paypal
  • Online Blackjack With Real Money
  • Play Online Blackjack For Real Money
  • Is There A Slot Machine App For Real Money
  • Royal Vegas Online Casino App
  • Best Casino Slots To Play
  • Most Popular Online Slots
  • Best Way To Win At Slots
  • Slots You Can Win Real Money
  • Play Roulette Online Real Money Usa
  • Online Casino Real Money Paypal
  • Online Casino Australia Legal
  • Treasures Of Troy Slots
  • Online Casino For Us Players
  • Where Can I Play Blackjack Online For Real Money
  • Online Casino Paypal Book Of Ra
  • Online Roulette For Real Money
  • Best Online Blackjack Real Money
  • Poker App For Real Money
  • Jackpot Magic Slots Facebook
  • Best Online Casino Real Money Usa
  • Best Online Casino New Zealand
  • The Four Kings Casino And Slots
  • How To Play Slots Online
  • Best Online Pokies Australia
  • Usa Online Slots Real Money
  • Real Money Casino Android App
  • Online Slot Machines That Pay Real Money
  • Online Pokies Real Money Nz
  • Online Pokies Real Money App
  • Play Igt Slots Online
  • Best Casino Slots To Win Money
  • Online Casino Business For Sale
  • Play N Go Slots
  • Poker Apps For Real Money
  • Lucky Slots Real Money
  • All Slots Online Casino
  • Best Online Pokies Real Money Australia
  • Online Pokies Win Real Money
  • Best Online Casinos For Roulette
  • Pay Slots For Real Money
  • Best Online Poker Real Money
  • Slots App Win Real Money
  • Play Online Roulette For Real Money
  • Is Ignition Casino Legit
  • Wheel Of Fortune Slots Online
  • Lotsa Slots Real Money
  • Video Poker Online Real Money
  • Online Slots Usa Real Money
  • Play Blackjack Online Real Money
  • Jackpot City Online Pokies
  • Video Slots Online Casino
  • Is 888 Casino Legit
  • Online Slot Games That Pay Real Money
  • Prepaid Visa Card Online Casino
  • How To Stop Online Gambling
  • Best Slots To Play Online
  • Online Blackjack For Real Money
  • Slot Apps For Real Money
  • Mobile Slots Win Real Money
  • Newsletter Sign Up

    About Us

    Global Law Experts is dedicated to providing exceptional legal services to clients around the world. With a vast network of highly skilled and experienced lawyers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.

    Social Posts

    See More:

    Contact Us

    Stay Informed

    Join Mailing List

    GLE