Corporate compliance requirements for Thailand companies.

Corporate compliance in Thailand involves ongoing obligations that begin at company registration and continue through annual filings, tax reporting and employment compliance. Understanding these requirements helps businesses avoid penalties, reduce audit risk and maintain good standing with the authorities.

This guide outlines the key corporate compliance requirements for companies operating in Thailand, including company registration, ongoing filing obligations, accounting and tax compliance, audit exposure and employment requirements.

Setting up a company in Thailand

Setting up a company in Thailand involves several legal and administrative steps, each forming part of the company’s compliance foundation.

Reserving and registering your company name

The company name is reserved with the Department of Business Development (DBD) of the Ministry of Commerce. The name ends with the word “Limited” and is registered in Thai, even if the business trades under an English name. Once approved, the reservation is valid for 30 days and no extension is permitted.

Director requirements

A Thai company requires at least one director who is at least 20 years old. Directors can be Thai residents or non-residents but cannot be legally incompetent or bankrupt.

Shareholder requirements and foreign ownership

Companies in Thailand are required to have a minimum of two shareholders. Foreign investors can have 100% ownership under certain requirements. For business activities reserved for Thai nationals under the Foreign Business Act, foreign ownership is capped at 49%.

Memorandum of association

The memorandum of association (MOA) is a legal document made by the company’s founders during the registration process. The required contents differ depending on the company type.

The MOA should include the following information:

• Private limited company
  • Company name
  • Company’s registered office location
  • Company’s objective
  • Registered capital
  • Name, address, age, occupation and number of shares that persons who start up the company reserve to buy
  • Name, address and age of two witnesses
• Public limited company
  • Company name
  • Purpose of the company to offer shares for sale to the public
  • Objective of the company
  • Registered capital
  • Location of the company
  • The name, dates of birth, nationalities and address of the promoters and the number of shares each of them has subscribed

Company name display obligations

The company name is displayed at the registered office and on all business documents, including invoices, letterheads and receipts. The words “Company Limited” or “Limited” are included.

Registered address requirements

Companies are required to have a registered address to receive correspondence from government authorities. This can be any valid street address where the owner or legal tenant has given permission for its use. Companies without a physical office can use a virtual office or fitted desk space arrangements.

Ongoing business compliance requirements for companies in Thailand

Once incorporated, companies are expected to maintain corporate governance and complete periodic filings throughout the year.

General meeting of shareholders

The company’s first general meeting is held within six months after the company is incorporated, and the following general meetings should be held once a year.

Annual reporting requirements

Private and public limited companies are required to prepare and submit the following documents at the end of each accounting period:

• Audited financial statements
• Balance sheet
• Profit and loss account
• Company name
• Director’s details
• List of shareholders
• Minutes of the annual meeting
• Type of business

These documents form the basis of the company’s statutory record and are reviewed as part of any compliance assessment.

Accounting and tax compliance requirements for companies in Thailand

Accounting and tax obligations form a central part of ongoing compliance and underpin the accuracy of a company’s financial and tax reporting.

The financial year-end

Companies in Thailand may determine their own accounting period, which is typically 12 months. Many companies adopt a 31 December year-end, though newly incorporated companies may have a shorter first period.

Bookkeeping requirements

Company accounts and supporting documents are kept at the company’s place of business, regular place of production or storage of goods or other regular place of work. They may also be kept at another location if approval is obtained from the DBD, for at least five years from the date of closing the account. Depending on the company’s business activity, the Revenue Department may require retention for up to seven years. Records are maintained in Thai or accompanied by a Thai-language version, and must be written in ink, typewritten or printed.

Documents, records and statements required to be kept include:

• Accounting journal
• Statement of accounts
• Records of payment and receipts
• Profit and loss statements
• Balance sheets
• Records of electronic funds transfer
• Credit card transactions
• Bank statements, including cheque records
• Internal or external audit reports

Financial statements, accounts and documents are also recorded in the Thai language or in a foreign language, accompanied by the Thai-language version, written in ink, typewritten or printed.

Financial statement audit requirements

Companies are required to prepare audited and certified financial statements at the end of each fiscal year. The appointed auditor issues an audit opinion, which is required when submitting financial statements and tax returns. For a full breakdown of what the audit process involves and how to prepare, see our guide on annual audit requirements in Thailand.

Corporate income tax filing and deadlines

Companies must file corporate tax returns (Form PND 50) and pay taxes within 150 days from the closing date of their accounting periods. Companies engaged only in disposing of funds/profits from Thailand also have to pay corporate income tax within seven days of the disposal date and file Form CIT 54.

Audit risk and enforcement in Thailand

Audit exposure in Thailand is generally risk-based rather than random. The Revenue Department reviews filing data, reporting patterns and available third-party information to identify cases for further review.

These reviews are shaped by how consistently a company reports across its filings over time. A single error or late submission is unlikely to trigger a full audit on its own, but patterns of misalignment across corporate income tax, VAT and withholding tax filings are more likely to attract attention.

Audit risk assessment

Audit risk is shaped by how consistently a company reports across its filings rather than by a single issue. The Revenue Department typically reviews patterns such as:

• Alignment between corporate income tax, VAT and withholding tax filings
• Changes in financial results over time
• Industry-specific reporting trends
• Filing history, including delays or corrections

Common indicators that increase audit exposure include consistent underreporting of income, unusually low taxable profits relative to turnover, large deductions without clear justification and discrepancies between VAT returns and corporate income tax declarations. These are covered in more detail in our guide on common corporate compliance mistakes in Thailand.

The focus is on whether reported figures and supporting records present a supportable overall reporting position over time.

Audit likelihood by company size and sector

The Revenue Department does not publish formal audit selection rates or thresholds. Audit likelihood varies depending on company size, sector and filing history.

For smaller companies, the absolute risk of a field audit is generally lower, but size does not eliminate exposure. Inconsistencies between VAT returns and corporate income tax filings, or mismatches with withholding tax data submitted by counterparties, can trigger a desk audit regardless of company scale.

Companies with clean filing histories, consistent reporting and figures that align with industry benchmarks are generally less likely to be selected. By contrast, companies with repeated late filings, frequent amendments or unexplained shifts in profitability present a higher risk profile over time.

Revenue Department audit approaches

Tax audits in Thailand are usually carried out in one of two formats:

Desk audits

Document-based reviews initiated by the Revenue Department, usually in response to a specific discrepancy or an anomaly identified during routine data matching. The department will request particular records or explanations in writing, and the scope is generally limited to the issue identified. Many desk audits are resolved through correspondence without escalating further.

Field audits

On-site reviews involving Revenue Department officers visiting the company’s premises to conduct a broader examination of accounting records, supporting documentation and internal processes. These are more common where issues are complex, involve higher-value transactions or arise from a desk audit that raised additional questions the submitted documents did not resolve.

A review may begin as a desk audit and expand into a field audit if further clarification is required.

Filing behaviour and audit exposure

Filing behaviour plays an important role in how a company is assessed. A single late filing will generally result in an administrative penalty rather than a full audit. However, patterns such as repeated delays or frequent amendments can increase visibility during review. The Revenue Department treats filing behaviour as one signal among several, so consistent and accurate filing reduces long-term audit exposure more reliably than any individual correction.

Non-compliance detection

The Revenue Department increasingly relies on data comparison across multiple sources. This includes:

• Cross-checking VAT filings with corporate income tax returns
• Reviewing withholding tax submissions from counterparties
• Comparing financial data against industry benchmarks

As a result, discrepancies between a company’s own filings or between related entities are more likely to be identified during routine reviews, even without a formal complaint or referral.

Audit process and documentation

When a review is initiated, the process typically begins with a written request for documents and an explanation of specific items. The materials requested will depend on the issue identified, but commonly include:

• Financial statements and general ledger
• Tax filings and supporting schedules
• Invoices and receipts
• Contracts and agreements
• Payroll and withholding tax records

The review focuses on reconciling reported figures with the underlying documentation. A services company, for example, may be asked to explain differences between revenue declared in VAT returns and income reported in the corporate income tax return. A manufacturing or trading company might be asked to reconcile its reported cost of goods sold against supplier invoices and inventory records.

Where inconsistencies are identified, the scope of the review may expand to cover additional periods or transaction types. Companies that maintain organised records and can respond to document requests promptly tend to resolve reviews more efficiently. For a detailed breakdown of what the Revenue Department typically looks for and how to prepare, see our guide on preparing for a tax audit in Thailand.

Employment law in Thailand

Employment obligations in Thailand cover statutory leave entitlements, payroll compliance and social security contributions, which are managed throughout the employment relationship.

Annual leave

Employees who have been employed for one consecutive year are entitled to at least six working days of annual leave. The employer and employee can agree to carry forward any annual leave that has not been used in the year to be added in the following year.

Sick leave

Employees are entitled to 30 days of sick leave each year. If the employee takes sick leave of more than three days, they are required to submit a medical certificate to the employer.

Maternity leave

Pregnant female employees receive 98 paid days of maternity leave which include day-offs for prenatal appointments.

Employers will pay the full amount of the female employee’s salary during the first 45 days of maternity leave, and social security pays the second half.

Paternity leave

Only employees in the public sector are entitled to 15 days of paid paternity leave.

Social Security Fund

Social security in Thailand covers the following categories:

• Section 33 – an employee who is not younger than 15 years old and not older than 60 years old
• Section 39 – an employee who is an insured person under section 33 having paid contributions for a period of not less than 12 months and ceases to be an insured person by ceasing to be an employee.
• Section 40 – any other person who is not an employee under section 33 or section 39

The contribution rate is 5% of salary. The minimum salary used to calculate contributions is THB 1,650 and the maximum is THB 15,000, resulting in monthly contributions of between THB 83 and THB 750. Contributions are submitted to the Social Security Office by the 15th of the following month.

Conclusion

Corporate compliance in Thailand covers company setup, ongoing governance, accounting and tax filings, and employment obligations. Meeting deadlines matters, but so does maintaining consistency across filings and supporting documentation over time.

As enforcement becomes more data-driven, companies that align their accounting records with tax reporting and file consistently are generally better placed to manage audit exposure. The risk of being reviewed is lower for companies with clean filing histories, complete records and figures that are consistent across returns. Where an audit does occur, organised documentation and a clear audit trail are the most effective tools for resolving it efficiently.

How Acclime can help with corporate compliance in Thailand

Acclime provides support across corporate compliance, accounting and tax in Thailand. From company setup and statutory filings to ongoing reporting and audit preparation, our team assists with aligning documentation and processes with local requirements, so your filing position is supportable and your records are ready when needed.

By working with Acclime, you can reduce compliance risk, maintain accurate reporting and manage interactions with the Revenue Department more effectively. Contact us to discuss how we can support your corporate compliance requirements in Thailand.