Doing Business in Thailand for Foreigners

Corporate income tax

Standard rate 20%. Small companies (SMEs) get reduced/tiered rates on lower profit bands, and BOI-promoted companies can receive multi-year exemptions.

VAT

Headline VAT is 10% but has been reduced to 7% by successive royal decrees for years — verify the current rate as it is renewed periodically.

Minimum shareholders

At least 2 shareholders (reduced from 3 in 2023). A company is treated as 'foreign' if 50% or more of shares are held by non-Thais.

Online-only registration

From 1 January 2026, company registrations must be completed online via the DBD BizRegist system — physical submissions are no longer accepted.

Registered capital

No fixed minimum for a purely Thai-majority company, but ~฿2,000,000 paid-up capital per foreign work permit is the practical threshold where foreigners will be employed (waived under BOI).

The 49% cap

In FBA-restricted businesses, foreigners are generally limited to 49% of shares; a Thai majority must hold the rest.

Using Thai 'nominee' shareholders to disguise foreign control is illegal and enforcement has tightened — Thai majority ownership must be genuine and documented.

Routes to majority / 100% ownership

BOI promotion, a Foreign Business Licence (FBL), or the US–Thailand Treaty of Amity (US nationals) can allow majority or full foreign ownership in eligible activities.

Company thresholds per foreign hire

Broadly ~฿2,000,000 paid-up capital and around 4 Thai employees per foreign work permit (e.g. ~8 Thai staff for two foreign permits). BOI-promoted companies are largely exempt from these ratios.

Thresholds are ministry rules and can change — confirm current requirements.

Visa pairing

A work permit must be paired with a valid Non-Immigrant B visa; working on a tourist entry is prohibited.

Corporate accounts

A registered Thai company can open a corporate THB account with registration documents; foreign individuals can open accounts but requirements vary by bank and visa status.

Repatriation of funds

Foreign currency can generally be brought in and remitted out after obligations are met. BOT raised the threshold for mandatory repatriation of export/foreign earnings to about USD 10,000,000 per transaction.

Dividend & branch remittance tax

Dividends to foreign shareholders are subject to about 10% withholding tax; a foreign branch's remitted profits carry a ~10% branch remittance tax — treaty relief may reduce these.

Personal income tax & foreign income

Progressive personal income tax runs 0–35%. Being a tax resident (180+ days/year) can bring foreign-sourced income remitted into Thailand (earned from 1 Jan 2024) into scope — the rules here are in flux, so take current advice.

Tourism & hospitality

A major share of GDP and employment, spread across cities and islands.

Automotive & electronics

A long-established regional production and export base, a priority for BOI incentives.

Agriculture, food & wellness

A leading global exporter of rice and processed food, plus a growing medical-tourism and wellness sector.