First Steps: Choosing Your Business Structure

Before you can operate in Thailand, you need to choose a legal structure. The right choice impacts everything from taxes to ownership to exit options.

 

Your Main Options

1. Thai Limited Company (Most Common)

The standard structure for doing business in Thailand.

Pros:

• Full business operations allowed
• Can hold contracts and assets
• Clear legal framework

Cons:

• 49% foreign ownership limit (unless BOI/Treaty)
• 4:1 Thai staff ratio for work permits
• 2M THB capital per foreigner

 

2. BOI-Promoted Company

A Thai Limited Company with BOI status.

Pros:

• 100% foreign ownership
• Tax exemptions
• No staff ratio requirements

Cons:

• 3-6 month application process
• Must maintain promoted activities

 

3. Representative Office

A liaison office for foreign companies.

Pros:

• Simple setup
• Low capital requirement
• Good for market research

Cons:

• Cannot generate revenue
• Limited to 3 foreign staff

 

4. Branch Office

A branch of an existing foreign company.

Pros:

• No new entity required
• Can conduct business

Cons:

• 3M THB capital requirement
• Subject to FBA restrictions

 

Decision Framework

Want full operations with maximum control? → BOI-Promoted Company (if eligible) → Thai Limited Company with Treaty of Amity (if US citizen)

Just need market presence? → Representative Office

Already have a foreign parent company? → Branch Office or Subsidiary

 

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Related Service: Company Registration & Legal Services — Get expert help choosing the right structure.