Thailand's Foreign Business Act caps foreign ownership at 49% in most sectors, and for years some founders got around it with a Thai shareholder in name only. As of January 2026, that workaround carries real legal risk: Thai shareholders now have to prove, with three months of bank statements, that they genuinely funded their shares. Here's what it takes to start a business in Thailand in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Thai Limited Company. The standard vehicle for foreign investors, requiring a minimum of two shareholders and one director plus a registered office address. Under the Foreign Business Act, foreign ownership is generally capped at 49% unless one of the exceptions below applies.
- Representative Office. Non-revenue-generating, limited to sourcing, quality control, advisory, and market reporting for a foreign parent company.
If you need majority or full foreign ownership, three legitimate paths exist: BOI (Board of Investment) promotion in eligible categories, the US-Thai Treaty of Amity for qualifying US citizens and companies, or a Foreign Business License (FBL) under the Foreign Business Act.
2. Register your business
Registration runs through the DBD (Department of Business Development) Biz Regist online platform. Reserve your company name first, generally 1 to 3 days, valid for 30 days; the name must end in "Company Limited." Government registration fees run roughly THB 6,000 to 10,000 depending on declared capital, with standard registration completing in 1 to 2 weeks once documents are filed. BOI promotion is a separate process from company registration entirely, handled by a different government unit; BOI's formal review alone takes 40 to 90 working days, and the full process, BOI approval plus company registration, typically runs 3 to 6 months.
3. Understand the foreign ownership landscape
New DBD regulations effective January 2026 require Thai shareholders to submit three months of bank statements proving they personally funded their shares, a direct response to nominee shareholding arrangements that were previously common and are now actively prosecuted. BOI promotion, by contrast, allows up to 100% foreign ownership in promoted industries like technology, R&D, and high-value services, along with corporate income tax exemptions of up to 8 years and land ownership rights, genuine incentives, not just a workaround.
4. Check licenses and permits
Thailand doesn't issue a single national business license. Foreigners generally need a Non-Immigrant B Visa to legally do business in Thailand and a Work Permit to actually work in the company; certain regulated industries carry additional permits.
5. Understand Thai taxes
Corporate income tax is a flat 20% on net profit. VAT is 7% standard, with registration required once annual revenue exceeds THB 1.8 million, which in practice also applies if you're sponsoring foreign work permits, since most companies doing so need VAT registration regardless of revenue.
6. Stay compliant
Limited companies must have their annual balance sheet audited, generally THB 20,000 to 50,000 a year, and filed with the Department of Business Development. Monthly bookkeeping typically starts around THB 5,000, and companies must withhold income tax from regular employees' salaries.
Thailand business costs at a glance
| Item | Cost |
|---|---|
| Thai Limited Company registration (government fee) | ~THB 6,000 to 10,000 |
| Standard foreign ownership cap | 49% |
| BOI-promoted foreign ownership | Up to 100% |
| BOI corporate tax exemption (promoted activities) | Up to 8 years |
| Corporate income tax, standard | 20% |
| VAT, standard rate | 7% |
| VAT registration threshold | THB 1.8 million turnover |
| Annual audit (mandatory, limited companies) | ~THB 20,000 to 50,000 |
Frequently asked questions
What changed about Thai shareholders in 2026?
New DBD regulations effective January 2026 require Thai shareholders to submit three months of bank statements proving they personally funded their shares, a direct response to previously common nominee arrangements.
What's the foreign ownership cap in Thailand?
Generally 49% under the Foreign Business Act, unless BOI promotion, the US-Thai Treaty of Amity, or a Foreign Business License applies.
What does BOI promotion offer in Thailand?
Up to 100% foreign ownership in promoted industries, corporate income tax exemptions of up to 8 years, and land ownership rights.
What's the corporate tax rate in Thailand?
A flat 20% on net profit.
When do I need to register for VAT in Thailand?
Once annual revenue exceeds THB 1.8 million. The standard VAT rate is 7%.
Fees and rates above come from the Department of Business Development (DBD) and the Board of Investment (BOI) as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Thailand-qualified accountant or lawyer about your specific situation.