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    Setting up a company in Thailand

    Southeast Asia's manufacturing and tourism economy. Foreign ownership is capped; BOI promotion opens the door.

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    At a glance

    Corporate tax

    20%; lower bands for SMEs

    VAT

    7%

    Foreign ownership

    49% in restricted sectors; 100% with BOI

    Incorporation

    1 to 2 weeks; 2 to 3 months with BOI

    Thailand attracts manufacturing, logistics and tourism investment with a domestic market of 70 million, the second largest economy in ASEAN and industrial zones such as the Eastern Economic Corridor. The standard vehicle is the Thai limited company; the Foreign Business Act caps foreign shareholding at 49 percent in many sectors. The legitimate ways past the cap are BOI investment promotion, a Foreign Business Licence and the Treaty of Amity for US citizens.

    Corporate tax is 20 percent, VAT 7 percent. Work permits for foreign staff depend on capital and the ratio of Thai employees. Badly built nominee structures attract penalties; the structure has to be designed around the promotion regime from the start.

    Why here

    When this jurisdiction is the right choice.

    • BOI incentives: 100 percent ownership, corporate tax holidays of up to eight years, land ownership.
    • A manufacturing and logistics base bordering ASEAN and China.
    • Competitive labour and developed industrial estates.
    • Strong demand in tourism and real estate services.

    Entity types

    Which structure, for whom.

    Thai limited company

    The standard form; at least two shareholders, limited liability, foreign cap depends on the sector.

    BOI-promoted company

    Board of Investment promoted company; 100 percent foreign ownership and tax holidays.

    Branch / representative office

    A foreign company's branch or non-revenue representative office.

    Process

    Formation step by step.

    1. 01Sector check against the Foreign Business Act lists
    2. 02BOI eligibility and application (where relevant)
    3. 03Name reservation (DBD)
    4. 04Memorandum, shareholders, capital and directors
    5. 05DBD registration and tax ID
    6. 06VAT registration (THB 1.8 million threshold)
    7. 07Bank account and capital payment
    8. 08Work permits and visas for foreign staff

    After formation

    What has to happen every year.

    • Monthly VAT and withholding returns
    • Half-year and year-end corporate tax returns
    • Annually audited financials and general meeting
    • Reporting of promotion conditions for BOI companies

    Frequently asked

    The in-country registry, licence and agent steps of the formation file run through our licensed formation partners in the relevant jurisdiction. Structure design, contracts, the bank file and the tax and notification effect on the Turkish side are managed by Defensible. Rates and thresholds summarise the headline rules at the time of writing; we check the current text together on your own file.

    Does the 49 percent cap apply to consulting companies too?

    Most services are on the restricted lists; foreign majority needs a Foreign Business Licence or BOI promotion. Software and digital services are among the activities BOI promotes; that is usually the cleanest route.

    Let's work out which structure fits you in 15 minutes.

    Tell us where you sell, who you are and what you are aiming at; we will say in the call which jurisdiction and entity type make sense. Formation itself is a separate engagement, scoped and priced there.

    Book a 15-minute call