What Are the Requirements for Starting a Company in Thailand? BOI Registration Eligibility and Step-by-Step Setup Guide

Establishing a company in Thailand is not merely a matter of having an idea-it requires careful execution. Local regulations, industry-specific restrictions, capital requirements, and approval procedures must all be clearly understood. This is especially true when applying for registration with the Board of Investment (BOI) of Thailand, where eligibility criteria are more detailed and the process more specialized. This article breaks down the key entry requirements and practical steps to help you avoid common pitfalls.

Basic Requirements for Registering a Company in Thailand

1. At least one natural person or juristic person must serve as a shareholder; there are no nationality restrictions, but valid identification documents must be provided.

2. At least one director must be a Thai national who resides permanently in Thailand and possesses full legal capacity.

3. The registered capital must be fully subscribed, with at least 25% paid in upon registration.

4. The registered office address must be a genuine commercial premises located within Thailand-residential addresses or virtual offices are not permitted.

5. The company name must be pre-approved and must not duplicate any existing registered name; it must include “Company Limited” or its abbreviation “Co., Ltd.”

6. Business activities must be explicitly specified; certain sectors-including education, healthcare, and media-are subject to foreign ownership restrictions.

Special Requirements for BOI-Registered Companies in Thailand

1. The proposed business activity must fall within an industry category listed in the BOI’s current year “Promoted Activities” directory.

2. The project must demonstrate technological sophistication, environmental compliance, or regional development impact; purely trading-oriented ventures are generally ineligible for BOI support.

3. Minimum investment thresholds vary by sector-for example, manufacturing projects typically require investment above a prescribed benchmark, while service-sector thresholds are determined separately.

4. A comprehensive business plan must be submitted, including production capacity planning, equipment lists, local procurement targets, and employment creation goals.

5. Foreign shareholders may hold up to 100% equity, provided they agree to comply with BOI’s additional conditions-such as submitting periodic operational reports.

6. Land acquisition is restricted: BOI-approved companies may lease land long-term under Thai law, while ownership of land requires special ministerial approval.

Step-by-Step Process for Registering a Company in Thailand

1. Define the corporate structure, shareholder composition, and scope of business operations; conduct a name availability check and secure name approval.

2. Prepare Thai-language notarized versions of the Articles of Association, shareholder resolutions, director appointment letters, and identity documents.

3. Submit the incorporation application to the Department of Business Development (DBD), Ministry of Commerce, and obtain the Company Registration Certificate and Tax ID Number.

4. Open a corporate bank account, complete the required capital contribution, and obtain a certified audit report confirming payment.

5. Register with the Social Security Office, file occupational safety documentation, and obtain industry-specific licenses (e.g., for food, construction, or logistics).

6. If applying for BOI promotion, submit a complete investment application package to the BOI within six months after company registration.

Core Benefits Granted Upon BOI Approval

1. Corporate income tax exemptions, lasting three to eight years depending on industry and investment scale.

2. Exemption from import duties on machinery and equipment; preferential duty rates may also apply to certain imported raw materials.

3. Higher quotas for foreign employees; long-term work visas may be granted for key positions.

4. Eligibility for supplementary provincial incentives-such as infrastructure subsidies or rental assistance.

5. Issuance of an official BOI Promotion Certificate, which serves as the legal basis for subsequent benefits related to land use, employment, and taxation.

The above outlines the principal requirements and procedural highlights for registering a company-and applying for BOI promotion-in Thailand. Should you have specific questions or wish to explore sector-specific entry criteria in greater depth, we recommend engaging a qualified compliance advisory firm early on for a tailored pre-assessment aligned with your business model.