Guidelines to Open a Business in Thailand as Foreigner

Thailand is a top business destination in Southeast Asia due to its strategic location, strong economy, and business-friendly policies. The estimated GDP growth rate of Thailand was 2.4% in 2024.

Additionally, opening a new business in Thailand takes about six days on average. Besides, Thailand has entrepreneur-friendly systems that attract many people to start a business here.

In this guide, we will provide clear guidelines to open a business in Thailand as foreigner. You will learn everything from obtaining the right visa to registering your business according to Thai regulations. Let’s get started!

Business Opportunities in Thailand for Foreigners

Before diving into a completely new business culture, it’s a good idea to learn about the best businesses in Thailand for foreigners.

• Tourism and Hospitality: About 34 million tourists visited Thailand in 2024 and this number is expected to go up to 40 million in 2025. Businesses like boutique hotels, eco-tourism, travel agencies, wellness retreats, etc., have great opportunities.

• Real Estate and Development: The property market in Thailand is booming, especially in urban areas and tourist hotspots. Investing in real estate businesses in Bangkok, Phuket, or Pattaya can bring lasting success.

• Agriculture and Food Exports: Thailand exports a lot of agricultural products and rice is at the top of this list. Thailand earned about $5.41 billion in the first ten months of 2024 by exporting rice.

• Technology and E-Commerce: Thailand is becoming a hub for tech startups with its rapid digital adoption. New businesses in sectors like fintech, e-commerce, or SaaS can grow really fast.

Requirements for Foreigner Doing Business in Thailand

To enjoy Thailand investment opportunities for foreigners, you must fulfill these requirements.

1. Non-Immigrant B Visa

This is a suitable type of visa for foreigners willing to start a business in Thailand. With this visa, foreigners can stay up to 90 days for the first time. The Non-Immigrant B Visa can also be extended for up to one year.

You can apply for this visa at a Thai embassy or consulate in your home country. Provide the necessary documents and pay the visa fee correctly. You should get the visa within 3-5 business days.

2. Work Permit

After arriving in Thailand, you should apply for a work permit to the Ministry of Labor. Submit all the necessary documents, such as passport, visa, financial statements, etc., and wait until the work permit is approved. Remember, the requirements for a work permit can change at any time. Thus, check with the official website before you submit the application.

Understanding the Foreign Business Act

The Foreign Business Act, B.E. 2542 (1999) regulates all business activities in Thailand. As it restricts certain types of businesses for foreigners, you must know about the restrictions.

Restricted Business Types

Foreigners face restrictions on 50 types of businesses in Thailand. These businesses are divided into three categories.

• List 1: Foreigners can engage in businesses mentioned on this list. These businesses are critical to national security or public interests, such as newspapers, broadcasting, domestic transport, etc.

• List 2: Businesses in this list are allowed under specific conditions. For example, the business must be approved by the Cabinet and the Minister of Commerce. Also, foreign shareholding of these businesses is limited to 49%. Construction, agriculture, and retail businesses fall under this category.

• List 3: Foreign entrepreneurs can start businesses in this category once they have a foreign business license. Tourism, finance, education, and healthcare businesses are mentioned in this list.

Obtaining a Foreign Business License

If a foreigner wishes to engage in a List 3 business activity, they must obtain a special license called the Foreign Business License. The Department of Business Development issues this license after reviewing the business plans, financial statements, and other documents.

BOI Incentives

Foreigners can usually own up to 49% of a permitted business in Thailand. The majority share of the business should be owned by Thai nationals.

However, in specific industries, the Thailand Board of Investment (BOI) offers various incentives for foreigners. These include full ownership, tax exemptions, employee quota exemptions, and more.

Choosing the Right Business Structure in Thailand for Foreigners

Benefiting from the most profitable business opportunities in Thailand for foreigners greatly depends on understanding these business structures.

1. Sole Proprietorship

• Owner’s Status: Any natural person with Thai citizenship can start this type of business.

• Number of Owners: The business will have one owner only.

• Amount of Control: The owner has full control over the business.

• Foreign Ownership Limitation: No foreign investors can own this type of business.

• Tax: The owner has to pay a personal income tax of 5-35%.

2. Limited Partnership

• Owner’s Status: A juristic person can be the owner, meaning any natural person or corporate body can own the business.

• Number of Owners: At least two owners are required.

• Amount of Control: Only partners with unlimited liability can manage the company.

• Foreign Ownership Limitation: Foreign owners can only own 49%. But if they have an FBL, FBC, or Treaty of Amity, they can have 100% ownership.

• Tax: 20% corporate income tax is applicable.

3. Private Limited Company

• Owner’s Status: Juristic persons, meaning the business is a separate legal entity from its owners.

• Number of Owners: At least three owners are required.

• Amount of Control: Only employed management can manage the company.

• Foreign Ownership Limitation: Same as the Limited Partnership.

• Tax: 20% corporate income tax is applicable to the business.

4. Public Limited Company

• Owner’s Status: Juristic persons

• Number of Owners: At least 15 owners

• Amount of Control: Only employed management can manage the company.

• Foreign Ownership Limitation: Same as the Limited Partnership.

• Tax: 20% corporate income tax is applicable to the business.

How to Open a Business in Thailand as a Foreigner?

Step 1: Select and Reserve Your Business Name

First of all, you need to choose a suitable name for the business. Then, log into the Automatic legal entity name reservation system and reserve the selected business name. Upon availability, your business name will be approved and reserved for 30 days.

Step 2: Submit the Memorandum of Association

Memorandum of Association is a legal document that you need to submit to the Department of Business Development. It should contain business goals, objectives, and other relevant information.

Step 3: Arrange a Statutory Meeting

In this meeting, all founders and shareholders must be present to discuss the registered capital and Articles of Association of the company.

Step 4: Submit an Application for Business Registration

Once you have completed the previous steps, you can submit the application for business registration. It can be submitted online or by going to the nearest DBD office. If you prefer doing it online, you can log into the Electronic Legal Entity Registration System (e-Registration) and follow the instructions.

After reviewing your application, DBD will issue a business certificate. It will work as proof of your company’s registration.

Step 5: Register for CIT and VAT

Within 60 days of your business registration, you must register for a tax ID from the Revenue Department. It will be used to pay Corporate Income Tax (CIT) and Value Added Tax (VAT). Visit the VAT-SBT Online website to register for tax ID.

Step 6: Open a Corporate Bank Account

After completing company registration and tax registration, you will need to open a corporate bank account for your business. Local commercial banks such as Bangkok Bank, Krungthai Bank, Bank of Ayudhya, and Kasikorn Bank are excellent choices. Additionally, international banks like United Overseas Bank and Standard Chartered Bank are also available options.

How to Register Other Types of Companies in Thailand?

As foreigners can’t start a sole proprietorship business in Thailand, we will discuss the process for other business structures.

1. Registered Ordinary Partnership: You can skip steps 2 and 3 from the above procedure. Reserve the name and submit the registration application directly.

2. Limited Partnership: Same as the Registered Ordinary Partnership.

3. Public Limited Company: In step 2, you must submit additional documents authorized by the Securities and Exchange Commission.

Fees for Opening a Business in Thailand

Check out the fee chart to start and operate a business according to the Board of Investment.

Remember, the total cost of company registration in Thailand may vary depending on the registered capital. And the registered capital will vary depending on whether you hire foreign employees or not. There can be miscellaneous costs associated with starting a business.

If you hire a service provider, they might require some additional charges. Overall, the estimated cost for company registration can be about 40,000-50,000 THB.

Frequently Asked Questions

Q: Is it possible for a foreigner to fully own a business in Thailand?

Yes. Foreigners must choose a suitable business and proper permits (such as a Foreign Business License or Foreign Business Certificate) to own 100% of a business.

Q: What are BOI incentives for foreigners in Thailand?

BOI-promoted companies in Thailand are free from FBA restrictions. Also, they don’t have to maintain a 4:1 ratio of Thai to foreign employees. These companies can also own land and send remittances in foreign currency.

Q: Which business is most profitable in Thailand?

The most profitable business opportunities in Thailand include tourism, hospitality, food & beverage, real estate, software development, etc.

Q: Can foreigners do business in Thailand with any other visa type?

Foreigners with a non-immigrant O visa (applicable for foreigners married to a Thai national) can apply for a work permit and start a business.

Q: Can foreigners start a franchise business in Thailand?

Foreigners can start a franchise business after obtaining the necessary licenses.

Final Words

Thailand has a lower corporate income tax rate and VAT compared to other ASEAN countries. This makes it a popular business hub in Southeast Asia. The country's great infrastructure, logistics, and connectivity create a good environment for businesses.

If you are a foreigner interested in starting a business in Thailand, our guidelines will help you through the process. Make sure to register your company correctly and take advantage of the growing opportunities in Thailand.