Doing business in Thailand

Thailand is a civil law jurisdiction and a constitutional monarchy with a unitary government. Key authorities for an incoming business are the Department of Business Development of the Ministry of Commerce (company registration and foreign business licences), the Board of Investment, the Revenue Department, the Customs Department, the Bank of Thailand, the Ministry of Labour, the Personal Data Protection Committee, the Department of Intellectual Property and the Trade Competition Commission of Thailand.

Key facts

Corporate income tax

Standard rate 20% (as at mid-2026)

VAT

7% (royal decree reduction from the 10% statutory rate)

Main entity form

Private limited company

Foreign ownership

Restricted under the Foreign Business Act unless licensed, BOI-promoted or treaty-based

Exchange control

Bank of Thailand rules; transactions through licensed banks

Data protection

PDPA B.E. 2562 (2019); Personal Data Protection Committee

New York Convention

Party since 1960 (acceded December 1959)

Minimum wage

Daily rate set by province

Most foreign investors use a Thai private limited company, a branch or a representative office. Under the Foreign Business Act, a company that is majority foreign-owned is treated as foreign and needs a licence or certificate for activities on the restricted lists, which cover many services. BOI promotion and the US-Thai Treaty of Amity are the main routes to majority foreign ownership in restricted activities.

Key facts

• Check whether the intended activity is on a Foreign Business Act list before choosing majority foreign ownership.

• Consider BOI promotion or, for US investors, the Treaty of Amity as routes to more than 49 percent foreign ownership in restricted activities.

• A private limited company formed by at least two founders, registered with the Department of Business Development, is the usual operating vehicle.

• Budget for minimum capital of at least THB 2 million for a foreign company, or THB 3 million where the activity needs permission.

• Use a representative office only for non-revenue activities, with permission from the Department of Business Development.

Who handles this in ThailandSetting up and running a companyLicences, permits and regulatorsContracts and commercial law

Corporate income tax is 20 percent, VAT is 7 percent, and payments abroad of dividends, interest, royalties and professional fees attract withholding tax. Thailand applies a top-up tax under the global minimum tax rules from 2025. Limited companies must have audited financial statements filed annually.

Key facts

• Plan for 20 percent corporate income tax and 7 percent VAT, noting that 7 percent is a royal decree reduction from the 10 percent statutory rate.

• Outbound dividends carry 10 percent withholding, and interest, royalties, rents and professional fees 15 percent, unless a treaty reduces them.

• Profits that a branch or other foreign company carrying on business in Thailand sends abroad are taxed a further 10 percent.

• Large groups should assess Thai top-up tax under the global minimum tax rules.

• Every limited company needs an annual audit by a certified auditor and filing of its financial statements.

Who handles this in ThailandTax and structuringAccounting and annual filings

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Key facts

• Register staff with the Social Security Office and budget for matching 5 percent contributions.

• Check the provincial minimum daily wage and the 48-hour weekly limit for each site.

• Obtain a visa, usually a Non-Immigrant B visa, and a work permit before a foreign employee starts work.

Who handles this in ThailandEmployment, payroll and immigration

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Foreigners generally cannot own land, but may own condominium units within a foreign quota. BOI promotion and the Eastern Economic Corridor offer tax holidays and other incentives.

Key facts

• Plan to lease rather than buy land unless BOI or industrial estate permission is available.

• Condominium purchases by foreigners are possible within the 49 percent foreign quota.

• Apply for BOI promotion, and consider the EEC, before investing to secure tax and ownership benefits.

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• Identify the sector regulator early for financial services, insurance, securities or telecoms.

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Who handles this in ThailandLicences, permits and regulatorsTax and structuring

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Non-residents can freely bring in and repatriate investment funds, with supporting documents for larger transactions. Non-resident baht accounts are restricted by purpose and balance to limit currency speculation.

Key facts

• Route foreign currency transactions through a licensed Thai bank, and expect document requests for transactions of USD 200,000 or more.

• Plan for foreign currency receipts of USD 1 million or more, including export proceeds, to be brought back within 360 days.

• Foreign parent companies holding baht offshore face non-resident account restrictions.

• Prepare corporate and beneficial owner documents for bank onboarding.

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Who handles this in ThailandPayments and currencyBanking and capitalTreasury and funding

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The Customs Department applies the Customs Act B.E. 2560 (2017). Thailand is a WTO member and trades under ASEAN agreements, RCEP and a range of bilateral FTAs. Some products need Thai Industrial Standards certification, and a dedicated law controls trade in dual-use items.

Key facts

• Use ASEAN, RCEP and bilateral FTA origin rules to reduce duty.

• Screen dual-use exports and transits under Thai trade control rules.

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• Customs procedures, valuation and penalties follow the 2017 Customs Act.

Who handles this in ThailandCustoms, trade and export controls

The Personal Data Protection Act B.E. 2562 (2019) is overseen by the Personal Data Protection Committee. It requires a legal basis for processing, restricts transfers abroad and provides for administrative fines. A separate Cybersecurity Act applies to critical information infrastructure.

Key facts

• Map Thai personal data processing to a legal basis under the PDPA.

• Put adequacy or safeguard arrangements in place before transferring data abroad.

• PDPA breaches can lead to administrative fines of up to THB 5 million, plus civil damages and criminal penalties.

• Critical infrastructure operators have additional cybersecurity duties.

Who handles this in ThailandData protection and cyber

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Trademarks, patents and designs are registered with the Department of Intellectual Property. Thailand is a member of the Paris Convention, the PCT and the Madrid Protocol. IP disputes are heard by a specialist court.

Key facts

• Register trademarks with the Department of Intellectual Property before entering the market.

• Use Madrid and PCT routes to extend international filings to Thailand.

• Copyright needs no registration, and IP cases go to a specialist court.

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Who handles this in ThailandTrade marks, patents and brands

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Mergers are controlled under the Trade Competition Act B.E. Takeovers of listed companies follow SEC tender offer rules, and insolvency is handled under the Bankruptcy Act, including business reorganisation.

Key facts

• Assess whether a merger needs prior approval or notification after completion; the Trade Competition Commission enforces both.

• Business reorganisation under the Bankruptcy Act is the main restructuring tool.

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Who handles this in ThailandBuying, selling and investingContracts and commercial law

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Bribery of Thai and foreign public officials is criminalised, and companies can be liable for bribes paid by associated persons unless they have adequate internal controls. The Anti-Money Laundering Office oversees AML compliance.

Key facts

• Adopt documented anti-bribery controls, as they form the corporate defence under Thai law.

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• Expect AML checks from banks and other reporting entities supervised by AMLO.

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• Anti-bribery rules also cover foreign officials, so regional teams need consistent policies.

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Who handles this in ThailandAnti-bribery, sanctions and complianceContracts and commercial law

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Commercial disputes go to the Courts of Justice, with specialist courts for IP and international trade and for bankruptcy. The Arbitration Act B.E. 2545 (2002) is based on the UNCITRAL Model Law, Thailand is party to the New York Convention, and foreign court judgments are not directly enforceable.

Key facts

• Use arbitration for cross-border contracts, as awards are enforceable and foreign judgments are not.

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• Contracts with government bodies may not include arbitration without cabinet approval.

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• Thai arbitration law, enacted in 2002, follows the UNCITRAL Model Law, which helps foreign parties.

Who handles this in ThailandDisputes and arbitration