Foreign investors register companies in Thailand via structuring, name reservation, incorporation, and licensing, depending on activities and ownership limits, with options like BOI promotion or US-Thailand Treaty benefits.
Company Formation Process in Thailand
Foreign investors typically establish a company in Thailand by following steps such as company structuring, reserving a company name, registering with the Department of Business Development (DBD), and completing necessary tax, licensing, and employment registrations. The specific pathway depends on the company’s activities and the extent of foreign ownership, which influences licensing and regulatory requirements.
Foreign Ownership and Activity Restrictions
A Thai-incorporated company is generally considered foreign under the Foreign Business Act (FBA) if foreigners own at least 50% of its capital. Certain business activities are restricted for foreign investors, making the company’s intended operations vital for determining permissible ownership levels and licensing options.
Licensing and Special Routes for Foreign Investors
For restricted activities, a foreign-owned company may need a Foreign Business License (FBL). Alternatively, companies with BOI promotion can obtain a Foreign Business Certificate, while US investors might qualify under the US-Thailand Treaty of Amity, subject to specific criteria. Establishing directors, signing authorities, and reserving a compliant company name are essential steps before incorporation.
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