Global Business Roadmap · 2026
How to Start a Business in Thailand
Thailand Foreign Business License, Thai Private Limited Company setup, VAT registration Thailand, and BOI incentives for tech startups in Bangkok.
01 · Legal Structure
Entity Structures
- Thai Private Limited Company — most common, requires minimum 3 promoters.
- Branch Office or Representative Office for foreign HQ presence.
- BOI-Promoted Company — fast-track for tech, R&D, and export businesses.
02 · Tax & VAT
Corporate Tax & VAT
- 20% standard corporate income tax (reduced rates for SMEs).
- 7% VAT — registration mandatory if annual turnover exceeds 1.8M Baht.
- Withholding tax 1–15% on cross-border payments.
03 · Labor & Licensing
Foreign Business Act
- FBA restricts foreign ownership in 43 business categories.
- Foreign Business License (FBL) required for restricted activities.
- BOI incentives: tax holidays up to 8 years + 100% foreign ownership for promoted sectors.
Mogul Pro Tip: BOI incentives for tech startups in Bangkok include 8-year corporate tax holidays, 100% foreign ownership, work permit fast-tracks, and land ownership rights — apply via the BOI e-Service portal before incorporation for maximum benefit.
Executive Note: BOI promotion is the cleanest route for foreign founders — tech startups qualify under Category 5/8.
Frequently Asked Questions — Thailand
Real answers for international founders
What is the Thailand Foreign Business License (FBL)?
The FBL is a permit issued under the Foreign Business Act 1999 that allows non-Thai majority-owned companies to operate in restricted sectors. Tech, software, and most export businesses can bypass FBL requirements via BOI promotion instead.
How much capital is needed for a Thai Private Limited Company?
Minimum registered capital is 2 million Baht for foreign-majority companies (or 3 million Baht if hiring foreign employees on work permits). BOI-promoted companies have separate capital requirements per category.
When is VAT registration mandatory in Thailand?
VAT registration becomes mandatory once annual turnover exceeds 1.8 million Baht. The standard rate is 7%. You can register voluntarily below this threshold to claim input VAT credits.
Can foreigners own 100% of a Thai company?
Yes — through BOI promotion, US citizens under the Treaty of Amity, or by operating in non-restricted business categories. Outside these paths, 49% foreign ownership is the default cap.
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