A private limited company is an ideal structure for most foreign businesses and entrepreneurs. You can set it up either in partnership with a Thai national or opt for foreign ownership (up to 100%).
A limited company is a Thai equivalent of the Limited Liability Company (LLC) and is usually the preferred first step to setting up a new business in Thailand. All limited companies have directors, shareholders (both Thai and foreign in many cases), promoters, and limited liability. In this case, limited liability means that the shareholder in a Thai company can only ever lose only the capital they invested. Because the rights and obligations of all parties are set down in writing in the company’s Articles of Association, everyone has a clear understanding of their legal standing within a company, unlike some joint ventures where some duties and privileges can drift into a complex grey area. With a Thai limited company, all legal entitlements and responsibilities are clearly stated and available for reference when required.
A limited company that is majority-owned by a Thai national generally doesn’t encounter restrictions – it can be engaging in any business activity and doesn’t face capital requirements (unless it employs foreigners). Consequently, for many, it is beneficial to form a business partnership with a Thai national, in order to meet the legal definition of a “Thai company.”
If a limited company is majority-owned by a foreigner, it is considered a foreign company and must obtain an FBL before engaging in business activities (unless promoted by BOI or registered under Treaty Amity, see the exceptions below). Such a company now faces stricter government restrictions and its scope of business is limited to activities allowed by the FBA.
*If the limited company employs foreign staff or directors, it needs to have 2M THB in registered capital per foreign employee and be also registered for VAT. A majority Thai-owned limited company with no foreign staff or directors has no capital requirements.
**Foreign companies face the same capital requirement for employing foreigners – 2M THB per foreigner.
***BOI-promoted companies can enjoy more relaxed foreign-to-Thai employee ratio.
With our customisable services, we are able to help you find tailored a legal solution built around your specific business objectives and needs.
Get a clear picture of your costs before you start with our upfront and affordable pricing. There are no hidden fees waiting for you around the corner.
Talk to our responsive team without losing anything in translation. We speak fluent English and make sure you are always up to date with the process and you are getting all the answers you need.
To help you meet ongoing corporate compliance and accounting obligations after registering your Thai company, we also offer a wide range of supporting business, legal, immigration and accounting services.
Ashmin, Acclime business services coordinator
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