Doing Business in Thailand: An Introduction to our Corporate Services
Thailand is one of the countries in Asia with a steadily growing economy and governmental policies that encourage investment. It is focused on improving its business environment and attracting foreign investments. Thailand’s economic success is continually brought by its strong tourism, agricultural, export and electronics industries.
In recent years, the public and private sectors have been diligently working to build on the country’s strategic position as a regional business hub in the heart of Southeast Asia. This makes it an ideal location for entrepreneurs seeking access to Thailand’s domestic market while also advancing its trade infrastructure to reach the fast-growing neighboring markets all throughout the Asia-Pacific.
With the growth of foreign investments in the country, more and more foreigners are developing interests in setting up their entities in Thailand. It is important, however, that these foreign investments must be established legally and are strictly abiding with the existing policies, rules and regulations under the context of Thai law.
In setting up a company in Thailand, investors must first decide and be specific on their business objectives. There are different types of corporate entities under Thai law. Each is governed by specific legislations and regulations of the Department of Business Development (DBD) of the Ministry of Commerce. The DBD has authority to control registration of business organizations in Thailand. The common business entities in Thailand are the following:
- Company Limited – this structure can be Thai majority-owned or foreign-owned. Foreign-owned companies are subject to the requirements of a Foreign Business License (FBL) except for foreign-owned companies which are incorporated under special treatiesor promoted by the Board of Investments (BOI).
- Branch Office
- Representative or Regional Offices
Starting a business in Thailand has been made easier compared to the previous years. In February 2023, the Ministry of Commerce has amended the requisites in setting up a Thai company limited. One of the significant amendments is reducing the number of shareholders from three (3) to two (2) natural persons. Foreign investors can likewise attain full ownership of the company through government promotions and unrestricted sectors such as export industries.
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If you plan to enter Thailand and set up your corporate presence, it is always recommended to work with reliable corporate lawyers who are knowledgeable and experienced in Thai Civil and Commercial laws and help you navigate local legislations. Get in touch with SCJ Law International to discuss how can we efficiently assist your doing business in Thailand.