Setting Up a Business in Thailand

The Board of Investment (BOI) provides the most efficient path for foreigners to achieve 100% company ownership and significant tax incentives in Thailand. Promoted sectors for 2026 focus on AI, digital services, sustainability, and advanced manufacturing.

Key BOI incentives include:

• Corporate Tax Holiday: Up to 13 years of corporate income tax exemption for qualifying businesses
• Import Duty Relief: Exemptions on machinery and raw materials for manufacturing
• 100% Foreign Ownership: Bypasses the standard 49% foreign ownership limit under the Foreign Business Act
• Land Ownership: Permission to own land for business operations (factories, offices)
• SMART Visa Support: Integrated work permits for highly skilled foreign talent

Standard company registration in Thailand involves several steps through the Department of Business Development (DBD). The most common structure for foreign businesses is a Thai Limited Company, which requires a minimum of three shareholders.

Without BOI promotion or Treaty of Amity benefits, the Foreign Business Act limits foreign ownership to 49% of shares. The remaining 51% must be held by Thai nationals. Working with a local agent or law firm is standard practice for navigating the registration process.

Key requirements include a registered company address in Thailand, a minimum registered capital (typically 2 million THB for companies employing foreign workers), and proper work permit applications for any foreign employees.

The Foreign Business Act (FBA) restricts foreign participation in certain business categories. Without BOI promotion or Treaty of Amity benefits, foreign-majority companies cannot operate in restricted sectors including retail, services, and certain types of trading.

Understanding which category your business falls under is critical before incorporating. Categories range from absolute prohibitions (List 1) to activities requiring Cabinet approval (List 2) to activities requiring Director-General approval (List 3). Many service businesses fall under List 3.

A Foreign Business License (FBL) can be obtained for List 3 activities, but the application process is lengthy and approval is not guaranteed. BOI promotion remains the preferred route for most foreign investors.