FAQs Relating to Thai Limited Company Formation

This FAQ is designed to give you a clear, practical overview of Thai Limited Company Formation in Thailand. It’s written in simple language and reflects current common requirements and practices in Thailand.

What is a Thai Limited Company?

A Thai Limited Company is one of the most common business structures in Thailand. It is similar to a limited liability company in other countries. Shareholders’ liability is limited to the unpaid amount of their shares.

How many shareholders are required?

A Thai limited company must have at least one director, who may be Thai or foreign. Under the amended Thai Civil and Commercial Code, effective 7 February 2023, the minimum number of shareholders required to establish a Thai Limited Company was reduced from three to two.

Can foreigners own a Thai Limited Company?

Yes, foreigners can own shares in a Thai Limited Company. However:

In most standard businesses, Thai nationals must hold at least 51% of the shares.
If foreigners hold 50% or more, the company may be considered a foreign company and could be restricted under the Foreign Business Act.
Some businesses are fully restricted or require special permission or licenses.

What is the minimum registered capital?

There is no fixed minimum registered capital required by law to register a Thai Limited Company.

However:

The company must declare a registered capital.
At least 25% of the registered capital must be paid up at the time of registration.
In practice, the required capital depends on the type of business and whether the company will hire foreign employees.

How much capital is required for a foreign director or employee?

As a general rule:

A company must have at least 2 million THB in registered capital per foreigner to support a work permit.

This amount may be reduced in certain cases (for example, if married to a Thai national), but this depends on the circumstances and authorities’ discretion.

Does forming a Thai limited company automatically give a visa or work permit?

Even if a foreigner funds or owns a Thai company, a work permit is required if the foreigner intends to personally engage in or manage the business. A Thai company may sponsor the appropriate visa and work permit for a foreign director or employee, provided the company is properly established and compliant with Thai laws. Generally, the company must employ at least four Thai nationals for each foreigner and maintain a minimum paid-up capital of 2 million Baht per foreign employee, subject to certain exceptions.

What are the requirements for the company name and address?

The company name must be unique and end with the word “Limited.”
The company must have a registered office address in Thailand. This address will be used for official correspondence.

Are business licenses required?

Yes, some business activities require additional licenses or permits, such as:

food and beverage businesses,
import and export activities,
hotels, tourism, and certain service businesses.

The required licenses depend on the nature of the business.

What are the ongoing compliance requirements?

After registration, a Thai Limited Company must:

keep statutory company records and shareholder lists,
hold an Annual General Meeting (AGM),
file annual financial statements,
submit required filings to the Department of Business Development (DBD).

Failure to comply may result in fines or penalties.

Should I seek professional advice before registering?

Yes. Company formation in Thailand involves legal, tax, and regulatory considerations. Professional advice helps ensure compliance, avoids nominee risks, and saves time and costs in the long run.

Need help setting up your Thai Limited Company?

Thai Limited Company Formation involves more than just registration — it requires careful planning around shareholding structure, capital requirements, visas, work permits, and ongoing compliance. Getting these details right from the start helps avoid delays, penalties, and unnecessary costs later on.

If you are planning to start a new business in Thailand, our specialists in company formation in Thailand can guide you through the entire process, from structuring and registration to licensing and compliance. Contact us today to discuss your business plans and get practical, reliable advice tailored to your situation.

This FAQ has been updated and reviewed for accuracy on December 2025 by:

Jira Chaisiri (Attorney-At-Law and Adviser)

Licensed Attorney-At-Law, The Lawyers Council of Thailand
He has over 40 years of legal practice in financial institutions and constitutional public agencies.

Disclaimer: This FAQ on Thai Limited Company Formation is for general information only and does not constitute legal advice. Requirements may vary depending on the type of business and individual circumstances.