Legal
What are the Hidden Costs of Company Creation in Thailand?
TL;DR: Company creation in Thailand involves more than simple registration fees. Foreign investors must budget for Foreign Business Act restrictions, minimum capital requirements, BOI investment conditions, work permits, VAT registration, accounting, audits, licensing, and ongoing labour law compliance. Proper structuring at the beginning helps avoid costly amendments and regulatory complications later.
Starting a business in Thailand presents exciting opportunities for entrepreneurs and investors looking to enter the country’s expanding economy and take advantage of its strategic location in Southeast Asia.
Thailand’s diverse business environment and supportive government policies for foreign investment provides a favorable environment for international expansion. However, hidden costs such as regulatory complexities, licensing fees, and ongoing compliance requirements, can lead to unexpected expenses.
In this article, we will take a look at some examples of hidden costs faced by foreign investors considering starting a business in Thailand.
Points clés
- Foreign businesses face ownership restrictions under the Foreign Business Act, with foreign ownership capped at 49.99% for certain activities, requiring either a Foreign Business License (difficult to obtain), BOI promotion, or a legitimate Thai partner.
- BOI promotion offers significant advantages including 100% foreign ownership and tax benefits, but involves costs for the Foreign Business Certificate and typically requires professional assistance.
- Work permit requirements create substantial hidden costs, as companies must usually have 2 million THB of paid up registered capital per foreign employee and hire four Thai employees for each foreigner (exceptions apply for BOI companies)
- Regulatory compliance requires business-specific licenses with varying fees, plus ongoing accounting services and annual audits.
- Visa processing for foreign employees involves unexpected expenses, as Non-Immigrant B visas often have to be obtained outside Thailand through the e-visa system, requiring travel costs and accommodation for 10-15 business days.
- You must have a registered address and a proper office to support VAT application and Work Permit application.
- If your company is registered for VAT or has employees, you must file taxes monthly, which requires monthly accounting and payroll services.
- Annual compliance obligations and audits, even if the company has no operations.
- Foreigners without a long-term visa may face difficulties opening a company bank account, often requiring a Thai local director.
- Purchasing an existing company can end up costing more in order to make the company align with your needs.
Overcoming the Restrictions For Foreign Businesses
While Thailand actively seeks to attract foreign businesses, certain business activities are reserved exclusively for Thai nationals. The Foreign Business Act (FBA) restricts foreigners or foreign-owned companies from engaging in over 50 categories of business activities in Thailand.
In relation to these restrictions, foreign ownership of a limited company is capped at a maximum of 49.99%. If a foreign investor owns 50% or more of a company’s shares, it is classified as a foreign company and will not legally be able to undertake these activities.
Please note, the use of nominee shares in Thailand is expressly prohibited by the Foreign Business Act.
While the Foreign Business Act does restrict foreign ownership, there are some exceptions which allow foreign owned companies to perform restricted business activities. However, these options will add additional costs to the project.
Licence d'entreprise à l'étranger
If a foreign owned business wishes to engage in any of the restricted activities contained within List 2 or 3 of the FBA, they may apply for a Foreign Business Licence (FBL). An FBL will allow 100% or majority owned foreign businesses to undertake restricted activities.
However, applicants must be aware that in practice it is difficult to obtain a FBL and there is no guarantee that the application will be successful.
Pour en savoir plus :
Comprendre la loi sur les entreprises étrangères en Thaïlande
Fees for a foreign business license in Thailand vary based on the type of business activities. When applying for a Foreign Business Licence, the minimum capital requirement is 3 million Thai Baht. This is an important consideration because if the company is being newly set up, this capital must be fully paid-up. If the company needs to increase its capital later, the additional costs and government fees involved should also be considered (to be discussed in more detail later in the article).
The fees for the Foreign Business Licence are as follows:
- Application Fees:
- 1,000 – 2,000 THB.
- License Fees:
- For business who wish to engage in activities within List 2:
- Minimum fee: 40,000 THB.
- Maximum fee: 500,000 THB.
- Fee calculation: 10 THB for every 1,000 THB of registered capital.
- For business who wish to engage in activities within List 3:
- Minimum fee: 20,000 THB.
- Maximum fee: 250,000 THB.
- Fee calculation: 5 THB for every 1,000 THB of registered capital.
- For business who wish to engage in activities within List 2:
- Certificate Fees:
- Issuing the Foreign Business License: 20,000 THB
The Ministry of Commerce will make a decision regarding the application within 60 days from filing the application. The license will be issued within 15 days after the approval date. In practice, the process takes around 6 months and there is no guarantee the applicant will be successful in their application.
This extended application timeframe could result in additional or hidden costs as the company cannot begin to operate within the restricted areas until the FBL has been awarded. This could result in the company spending money on rent, wages and other costs without being able to make any income.
Promotions du BOI
When starting a business in Thailand, checking your company’s eligibility for BOI promotion should be your top priority.
A common misconception among foreign investors is that the BOI only supports high-tech projects. In reality, many business activities qualify for promotion from the BOI, ranging from manufacturing, service, digital activities (including software), plus many more. The BOI even offers a catch-all promotion through the TISO program, which covers a wide scope of activities including various service industries.
BOI-promoted companies enjoy significant benefits not available to other company structures, such as:
- 100 % de propriété étrangère,
- Foreign Business Certificate to navigate the restrictions of the Foreign Business Act,
- Land ownership,
- Potential tax exemptions and
- Relaxed rules for work permit and visas
The removal of the Foreign Business License requirement, combined with other BOI incentives, makes it significantly easier for foreign investors to establish and operate businesses in Thailand.
While the BOI clearly offers a major advantage for eligible companies, it is not a cheap option. While there are no official fees for applying for a BOI promotion, successful companies will have to pay 22,000 THB for the Foreign Business Certificate.
The biggest expense a company may face in relation to a BOI application is for professional assistance. While it is possible to apply for a BOI promotion without assistance, it is a long and complicated process.
The conditions of your approval, including minimum investment requirements and other obligations, will be determined based on the business plan you submit.
By working with experienced professionals who handle BOI applications regularly, you will be able to structure your business plan in a way that meets the BOIs criteria and therefore keep investment requirements manageable. While the minimum investment for most BOI promotions is 1 million THB, the actual amount required can vary depending on the details of your business plan, projected revenues, and the nature of your proposed activities. In some cases, the BOI may require a significantly higher investment than the minimum threshold, making careful planning essential to avoid unnecessary financial commitments.
Hiring a company who is experienced in handling applications can make the process smoother and more efficient as they know exactly what the BOI requires and can prepare everything accordingly. Applications which are not properly prepared can result in lots of back and forth between the applicant and BOI for extra information or answering avoidable questions.
Pour en savoir plus :
Les bénéfices de la promotion du BOI pour votre business en Thaïlande
Thai Limited Company with a Thai Partner
A private limited company that has been properly structured is the most common business type for a business who wishes to perform restricted business activities.
A Thai limited company with a Thai partner who holds over 50% of the shares is not considered foreign owned and therefore, not subject to the restrictions of the Foreign Business Act.
While the official fees for registering a company in Thailand are THB 7,000 (this cost can be slightly higher if the company wishes to have a company stamp as well), the hidden costs that may affect the foreign investor come from the structuring of the company. In order for a foreign investor to protect their investment when starting a company with a Thai partner, it is highly recommended to draft a Shareholder Agreement and Articles of Association which clearly state the rights and obligations for both parties.
When starting a Thai limited company, legal fees can quickly add up, so it is highly recommended to check what’s included in your lawyer’s package. Many service providers offer incomplete company registration packages missing key elements like proper Articles of Association, Share Registrar Book and certificate of shares, , but investors should make the package they have chosen covers all their needs and services upfront. This is important because if you need to make changes later to fix an issue, this can result in unexpected costs.
For example, if you need to add or amend your company’s Articles of Association (AOA), this will be subject to additional costs. The provisions within an AOA state how the company is managed, protects investors, and outlines share transfer restrictions, drag-along and tag-along rights, and other essential governance rules.
If the company does not choose to have an AOA at the beginning, the company will be subject to the provisions of the Thai Civil and Commercial Code. If the company wishes to add some Articles of Association or make changes to their existing AOA, this will require an Extraordinary General Meeting (EGM), issuing shareholder notices, and formally submitting amendments, which will result in further costs.
Another often-overlooked cost involves the company’s shareholding structure. If you want different classes of shares with varying voting rights, this must be planned carefully at the beginning. Once a class of shares is created, it cannot be canceled or changed later. Any restructuring would require a capital decrease which is a complex legal process, leading to additional expenses.
These should all be prepared at the beginning of the company setup process. Once the company is established, obtaining shareholder agreements or signatures for necessary documents may become more difficult, resulting in delays or conflicts among the shareholders.
Another consideration when setting up a company in Thailand is signing a shareholder agreement. This is recommended because the agreement must be signed by all shareholders and are legally enforceable against the signatories. Again, it is recommended to complete this before registering the company, although it can be done at any time.
A Shareholders’ Agreement is a private agreement between the shareholders of a company that outlines how the business will be owned, managed, and operated. It areas such as voting rights, profit sharing, share transfers, financing, and conflict resolution.
If there is no shareholder agreement, there is a risk that the shareholders who initially agreed on certain terms may later change their minds, forget the details, or even refuse to sign. This can lead to serious issues and potentially costly legal disputes.
A Shareholder Agreement must be drafted in a way that provides the best protection for the foreign investor. Therefore, when drafting these kinds of documents, it is best to work with a professional legal team.
To hire experts to draft these kinds of documents, investors should expect to pay fees starting at THB 35,000 to more than THB 100,000 for complex agreements.
Purchasing a Company
Purchasing an existing company may seem like a great idea, however in reality it could result in many additional costs being incurred by the company on top of the initial purchase price.
Pour en savoir plus :
Due Diligence
En acquérant une entreprise, le nouveau propriétaire s'expose au risque d'assumer des dettes imprévues ou dissimulées, telles que des litiges en cours, des obligations fiscales ou contractuelles que le vendeur aurait pu contracter avant la vente. Un autre inconvénient réside dans la possibilité d'être tenu responsable des actions ou des erreurs commises par le vendeur avant l'achat, même si l'acheteur n'y a pas participé ou n'en avait pas connaissance.
Conducting thorough due diligence is highly recommended when buying an existing business. Due diligence allows you to confirm key details and assess the potential risks and opportunities associated with the target company.
When undertaking due diligence, the following areas should be considered:
Détails de l'enregistrement de l'entreprise : Review the company’s registration details, including its legal status, current shareholder list, and directors.
Passif : Vérifier si l'entreprise est impliquée dans des litiges en cours ou porte des dettes significatives, dont les nouveaux propriétaires pourraient devenir responsables. Cela inclut des aspects tels que les dettes financières, les obligations fiscales, les engagements contractuels et les litiges légaux en cours.
Analyse financière : Examiner les bilans financiers, les relevés bancaires et les documents fiscaux de l'entreprise afin d'évaluer sa santé et sa stabilité financières.
Contrats et obligations : Évaluer tous les contrats et accords signés par l'entreprise, y compris les contrats de travail, les accords avec les fournisseurs et les contrats de location.
Conformité juridique et réglementaire : Renseignez-vous sur les éventuels litiges juridiques, les procès en cours ou les obligations fiscales en suspens auxquels l'entreprise pourrait être confrontée.
Restructuring the company
When you buy an existing company, the chances are that the company was set up and structured for different reasons than you require, therefore it will have to be restructured to match your needs. Purchasers of companies should carefully assess their chosen company and consider the costs associated with making amendments.
Common areas that may need restructuring for a company include:
Transferring the Shares
When purchasing an existing company one of the most important steps is to transfer the shares from the original shareholders to the purchasers of the company.
In order to complete the transfer of shares, a share transfer instrument must be completed in writing and be signed by the transferor and transferee (and signed by at least one witness).
Share transfers do not need to be prepared in Thai. However, they do need to contain the names of the transferor and transferee, the number of shares to be transferred, the share numbers, the price and the date.
Enfin, le nom et l'adresse du cessionnaire doivent être inscrits dans le registre des actionnaires, et la liste des actionnaires (Bor Jor 5) doit être mise à jour auprès du ministère du Commerce. La liste mise à jour des actionnaires peut être soumise en ligne via la plateforme du Département du développement des entreprises (DBD).
Le défaut d'inscription du cessionnaire dans le registre des actionnaires rend le transfert invalide.
If you are considering purchasing a company, it is recommended to ensure that the service provider includes the share transfer process in the scope of services.
Pour en savoir plus :
Transfert d'actions pour une société par action simplifiée thaïlandaise
Adding/removing directors
When purchasing a company in Thailand, adding or removing directors is necessary. The purchaser will typically want to appoint themselves or their chosen representatives to manage the company. Additionally, the removal of existing directors is required to transfer full control to the new owners.
The process to add and remove directors requires following several steps including calling an Shareholders Meeting (EGM), issuing shareholder notices, and formally submitting amendments, which will result in further costs.
Pour en savoir plus :
Comment changer le gérant d'une société en Thaïlande
Capital increase
A foreign investor purchasing a company who wishes to obtain a work permit and work for their company must have a registered capital of at least 2 million THB. If the company’s registered capital is less than 2 million THB, you will need to increase it later to meet work permit requirements. This process incurs additional fees, so it’s important to anticipate and plan for it in advance.
Updating the company objectives
The company objectives are the activities that a company is registered to conduct. These objectives are listed in the company’s Articles of Association (AOA) and define the scope of its business operations. For example, if the company purchased was incorporated as a import/export company and the purchaser wishes to undertake manufacturing, they would need to update the company objectives.
When registering a company, it is required to state the business activities undertaken by the company. Failure to do so may carry the director’s liabilities for business activities outside the company objectives. Amending the objectives later requires an EGM (Extraordinary General Meetings of the shareholders).
Additional costs would be required to cover the cost of the EGM required to arrange this and any associated costs with updating the DBD and Revenue Department.
Updating or adding Articles of Association
If the company wishes to add some Articles of Association or make changes to their existing AOA, this will require an Extraordinary General Meeting (EGM), issuing shareholder notices, and formally submitting amendments, which will result in further costs.
Seeking Professional Assistance
While it is possible for a foreign business to obtain a FBL, BOI Promotion or start their own company on their own, it is recommended to seek professional help. Both the FBL and BOI applications are very long, in depth and technical and may be overwhelming for someone who hasn’t experienced them before.
By hiring local experts, foreign investors can take advantage of the local firms’ practical understanding of what makes an application successful and, conversely, what can cause delays or lead to unsuccessful outcomes. Helping to make the process smoother and more efficient for the applicant.
However, these services are often costly and may significantly increase the company’s initial startup expenses.
Business Licence Requirements
Starting a business in Thailand may require the company to obtain a business license or permit to operate legally. The specific licenses needed will depend on the company’s business activities.
Please note, these business licences are separate from the Foreign Business Licence/Certificate. The FBL/FBC are for performing restricted business activities as a foreign owned company, while business licences and regulatory requirements for businesses operating within specific sectors.
Some common examples of business licences include:
- Licence alimentaire
- Hotel Licence
- Factory Licence
- Import/Export Licence
- Tourism Licence
The official fees for the business licences depend on each individual business licence.
Examples of some official fees for a business licence include:
- Tourism (TAT) Licence:
- Émigration : caution de 200 000 THB et taxe gouvernementale de 500 THB.
- Entrant : caution de 100 000 THB et taxe gouvernementale de 500 THB
- Intérieur : une caution de 50 000 THB et une taxe gouvernementale de 300 THB.
- Restaurant Licence (yearly renewal required):
- Up to 10 square meters: 100 THB
- More than 10 square meters: add 5 THB per square meter
- Between 200 and 300 square meters: 2,000 THB
- More than 300 square meters: add 5 THB per square meter
- The government fee is limited to 3,000 THB
- Hotel Licence (excluding Non-Hotel Licence):
- Hotel and restaurant business: application fee of 20,000 THB
- Hotel, restaurant and seminar rooms: application fee of 30,000 THB
- Hotel, restaurant, seminar rooms, entertainment business: application fee of 40,000 THB
- An additional fee of 80 THB per room per year is due.
- The license has to be renewed every five years, and then half price of the government fee will have to be paid.
The prices of business licences vary significantly, so it is recommended to check what licence you may need and their expected cost as soon as possible.
Minimum Capital or Minimum Investment Requirements
Registered capital requirements are another hidden cost that foreign investors who are interested in investing in Thailand should be aware of.
Pour une société par action simplifiée classique en Thaïlande, le capital minimum requis est généralement de 50 000 THB (environ 1 500 USD). Toutefois, si un investisseur étranger souhaite travailler pour l’entreprise, il doit obtenir un permis de travail.
Pour pouvoir demander ce permis, l’entreprise doit disposer d’un capital social de 2 000 000 THB (environ 60 000 USD) par permis de travail. Cette exigence est obligatoire et représente un investissement significatif pour les investisseurs étrangers.
If your company’s registered capital is less than 2,000,000 THB and you plan to hire a foreign employee in the future, you will need to increase the capital later to meet work permit requirements. This process incurs additional fees, so it’s something you should anticipate and plan for in advance.
En Thaïlande, le capital social destiné à soutenir une demande de permis de travail doit être versé, c’est-à-dire que le montant déclaré doit être déposé sur le compte bancaire de l’entreprise. Une fois cet argent déposé, il peut être utilisé par l’entreprise pour ses opérations courantes.
Exigence minimale d’investissement en capital pour les entreprises BOI
Lorsqu’une entreprise obtient l’approbation de la BOI, elle doit satisfaire à certaines conditions avant de recevoir le certificat BOI. Dans le cadre de ces exigences, l’entreprise doit transférer l’investissement en capital nécessaire pour l’obtention du certificat. Le montant exact de l’investissement requis est déterminé par la BOI et précisé dans la lettre d’acceptation.
Pour les projets impliquant des actionnaires étrangers, la BOI exige que l’investissement minimum proportionnel à la part de propriété étrangère provienne de l’étranger.
Le montant minimum d’investissement est de 1 million de THB (environ 30 000 USD), mais il peut être supérieur en fonction de l’évaluation de votre demande et de votre plan d’affaires. De plus, certains types de promotion fixent déjà un montant d’investissement minimum spécifique.
Companies who are interested in applying for a BOI promotion should factor in this investment requirement when planning their business. After accepting the Acceptance Letter from the BOI, the company must transfer the minimum investment within 3 months.
Visa and Work Permits
In order for a company to be able to hire any foreign employees, Thai Limited companies must meet capital and Thai-to-foreigner employee ratio requirements (please note, BOI companies are exempt from these requirements).
For a Thai Limited company to support each individual work permit, it is required to have the following:
- A registered capital of 2 million THB PER foreign employee (to hire four foreign employees, you would need 8 million THB in registered capital). This capital amount has to be paid up capital, which means you have to deposit the full 2,000,000 THB (or however much you need to support multiple work permits) first. Once this capital has been transferred the company can use it to run the business.
- Hire four Thai employees for every one foreign employee (if you want to hire four foreign employees, you would need to employ 16 Thai staff members to meet the employment ratio requirement).
- Be registered with Social Security and have made 3 months payments for the Thai Staff.
- Be registered for VAT.
Please note, the requirements for foreign nationals married to Thai citizens are reduced by 50%, to 1 million THB is registered capital and 2 Thai employees.
Supporting a work permit represents a significant hidden cost for foreign investors as they need to be able to cover the minimum capital, as well as the salaries and tax obligations for the Thai employees.
Do you need to hire full time Thai employees?
To sponsor a work permit for a foreign employee in Thailand, your company is required to hire 4 Thai employees per foreign employee (unless the foreign employee is married to a Thai national and only 2 Thai staff will be required).
However, simply listing employees on payroll is not enough, these employees must be legitimate workers registered with the Social Security Office by your company. These employees must have been registered with Social Security for at least three months before you can apply for a foreign employee’s work permit.
The Thai employees can work full-time or part-time, as long as they are officially employed by your business.
It is also important to comply with salary regulations. Each employee must be paid at least the minimum wage, and salaries should be appropriate for their job positions. If all employees receive the same salary regardless of their role, this could raise suspicion and result in an investigation by the Social Security Office.
Please note, that companies that have received a BOI promotion are not subject to these restrictions.
Pour en savoir plus :
Combien d'employés thaïlandais faut-il pour obtenir un permis de travail ?
Do you need a proper office to hire foreign employees?
If you plan to hire foreign employees in Thailand, one unexpected cost you may come across is the need to get a proper office address. When first registering the company, you can use a virtual office address as the company’s registered address, however, this isn’t a long term solution. This is especially the case if you are considering hiring foreign employees and applying for work permits.
In order to obtain a work permit, the company must be registered for VAT and VAT registration requires a proper office address.
As part of the VAT registration process, the Revenue Department requires photos of your company’s office, with a sign displaying the company name clearly. These photos are used to verify that the office is a legitimate and the actual business location. While physical inspections are rare, they are possible.
Additionally, when registering employees with the Social Security Office (SSO), photos of the staff and offices will also be required. It is also more common for the SSO to inspect the office within the first month to confirm the details.
Another potential cost related to VAT registration is the requirement for a letter of consent from the landlord or the Juristic Office if you’re using an office building. This letter is needed for the registration process, and in some cases, the landlord or Juristic Office may charge a fee for issuing it.
Can you get your business/work visa in Thailand?
Another often-overlooked cost is that, for most applicants, the Non-Immigrant B visa, required to work in Thailand with a work permit (unless holding a Marriage Visa or LTR Visa), must be obtained from outside Thailand.
Therefore, unless you have been managing the company registration process or working remotely from your home country, you will need to leave Thailand to apply for your Non-Immigrant B visa.
Due to new regulations all visa applications made at Thai Embassies and Consulates must be made using the e-visa system. However, one significant disadvantage of this new system is that applicants must be present in the country the application is being made, even though it is being made online.
This can be a problem because the processing times are currently taking longer than before using the old system. The current expected turnaround time is 10 to 15 business days, depending on the embassy or consulate handling the application.
For example, Kuala Lumpur is currently issuing e-visas in about 10 business days, however, this is slower than previously when the expected turnaround was 3 days. This means foreign investors who require a visa must pay for transport to a neighbouring country to apply for their visa, as well as accommodation for approximately 2 weeks and living costs e.g. food and drink. This can turn out to be quite an expensive process.
Please note, we expect the turn around time to be reduced at some points in the near future, as the e-visa online platform should allow officers to expedite Visa Application. However, at the time of writing this article this is still not the case.
Taxation and Accounting Fees
Managing taxation and accounting is an essential part of running a business in Thailand, and failing to meet compliance requirements can result in penalties. Foreign investors should be aware that these financial compliance requirements can add up over time, representing a significant hidden cost of company creation in Thailand.
All businesses in Thailand, regardless of whether they undertook any activities during their previous financial year are required to complete the annual filings requirements. The annual filing includes preparing financial statements, having these statements audited by independent auditors, holding an AGM and completing the annual filing.
- Companies are also required to undergo an annual financial audit, which must be conducted by a certified independent Thai auditor. The cost of an annual audit depends on the company’s size and transaction volume, typically ranging from THB 10,000 to over THB 100,000.
Pour en savoir plus :
Quelle est la procédure à suivre pour la clôture annuelle des comptes de l'entreprise ?
Another important consideration is that from the moment your company makes a payment for services, it may become subject to various taxes. Similarly, hiring employees means you must register them with the Social Security Office and satisfy the payroll tax requirements.
VAT registration is another important consideration. If your company is registered for VAT (mandatory requirement for hiring foreigners), you are required to file monthly VAT returns, even if your VAT for that period is zero. This means that from the moment you issue or receive an invoice subject to VAT, you must report and pay the tax in the following month.
Once you hire employees, you must withhold and remit their income tax and social security contributions on a monthly basis. These filings should be handled by a qualified accountant, as mistakes can lead to fines or additional scrutiny from the Revenue Department. The cost of hiring an accountant varies depending on the complexity of the business, but foreign investors should budget at least THB 7,000 for a company with few transactions and 40,000 up more for a company having numerous transactions.
Failing to deal with any required tax filings can result in late penalties and improper bookkeeping, which could result in additional tax risks in the event of an audit by the Revenue Department.
Technology Costs
Another often overlooked cost is technology-related expenses. Businesses rely on various digital tools and IT infrastructure to operate efficiently.
One of the main technology costs is software licensing. Depending on the activities of the business, companies may require professional software for accounting, project management, customer relationship management (CRM), or cybersecurity.
Popular software like Microsoft Office 365, QuickBooks, or Adobe Suite comes with recurring subscription fees that can range from a few thousand to tens of thousands of baht per year.
Hardware costs also need to be considered. Buying computers, servers, printers, and networking equipment is a necessary expense when setting up a business. High-quality laptops or desktops can cost anywhere from THB 20,000 to THB 80,000 per item, while additional items like external monitors, or office equipment will further increase initial startup costs.
Another important hidden cost for businesses in Thailand is the withholding tax (WHT) on software and service payments made to foreign companies. When a Thai company pays for software or other digital services from a provider outside Thailand, the payment is generally subject to up to 15% WHT (unless the relevant provisions of a Double Tax Agreement applies). If a foreign software service provider is not VAT-registered in Thailand, your company may be required to pay the 7% VAT on their behalf. In such cases, your accountant will include this amount during the monthly tax filing, adding 7% VAT on top of the service fee.
The Thai tax system considers that since the service is being used within Thailand, VAT should apply, and because the foreign provider does not pay corporate income tax in Thailand, the Thai company must withhold and remit the tax on their behalf. In practice, this means that if a business pays $200 per month for a software subscription, the actual cost to the company will be higher. The company must pay an additional 15% WHT on behalf of the foreign provider (which cannot usually be deducted from the invoice) and 7% VAT, increasing the total expense.
Some Double Taxation Agreements (DTA) between Thailand and other countries may provide exemptions or reduced WHT rates, but this depends on the country where the software provider is based.
For businesses with frequent international payments for software and services, one potential option is to set up a holding company in a jurisdiction such as Hong Kong to handle these expenses. Hong Kong’s tax system offers more flexibility in deducting expenses, particularly for travel and entertainment costs, which are more restricted under Thai tax regulations.
Renting an Office
Renting an office in Thailand comes with several upfront and ongoing costs that businesses should be aware of. In most cases, landlords require a two-month security deposit along with one month’s rent paid in advance. If renovations are needed before moving in, some landlords may offer one month of free rent to allow the company to complete the setup process.
Before signing a lease, it is recommended to conduct due diligence to ensure you are dealing directly with the property owner or an authorized representative. This helps avoid potential legal issues and ensures that the landlord can provide a Letter of Consent, which is required to register your company for VAT and Social Security Office (SSO) registration. Without this document, your business may face complications in registering for VAT and SSO.
Pour en savoir plus :
Pourquoi l'audit d'acquisition est-elle importante lors de l'achat d'une propriété en Thaïlande ?
Hiring Employees and Staff Turnover
Another hidden cost when starting a business in Thailand is human resources. The job market in certain sectors is highly competitive, making it challenging to recruit and retain employees.
Many businesses rely on recruitment agencies or job platforms such as JobsDB and ThaiJob to find suitable candidates. However, even after finding a suitable candidate, keeping them for the long term can be challenging.
A common issue in Thailand is that candidates often accept job offers while continuing to look for other opportunities. While the standard notice period is typically one month, new hires may withdraw at the last minute if they receive a better offer elsewhere, sometimes without even notifying the employer. This can leave businesses in a difficult position, and it’s often hard to find a replacement quickly.
Staff turnover is another major concern, as employees may leave with short notice, sometimes less than a month. Building a stable team in the early stages of a business can be particularly difficult, and high turnover rates can be costly due to the time and resources required for continuous recruitment and training. To try and reduce the chances of this happening, companies should focus on creating a positive work environment, offering incentives that align with employee expectations, and understanding local workplace culture.
What are the Salary and Employee Welfare Requirements in Thailand?
Once an individual starts employment with a Thai company, there are several financial contributions they will need to understand. Common examples include monthly payroll deductions such as personal income tax, social security contributions, and, where applicable, provident fund contributions.
Minimum Salary Requirements
In Thailand, the minimum wage for Thai and foreign employees are completely separate, with Thai employees subject to provincial daily wage rates and foreign employees subject to nationality-based minimum salary rules.
The minimum daily wage rates in each province for Thai employees are as follows:
| Minimum daily wage (THB) | Provinces / cities |
| 400 | Bangkok, Chachoengsao, Chonburi, Phuket, Rayong, Ko Samui (Surat Thani) |
| Hotel Business, Entertainment Place Business
(all over the country) |
|
| 380 | Mueang Chiang Mai (Chiang Mai), Hat Yai (Songkhla) |
| 372 | Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon |
| 359 | Nakhon Ratchasima |
| 358 | Samut Songkhram |
| 357 | Khon Kaen, Chiang Mai (excluding Mueang Chiang Mai), Prachinburi, Phra Nakhon Si Ayutthaya, Saraburi |
| 356 | Lopburi |
| 355 | Nakhon Nayok, Suphanburi, Nong Khai |
| 354 | Krabi, Trat |
| 352 | Kanchanaburi, Chanthaburi, Chiang Rai, Tak, Nakhon Phanom, Buriram, Prachuap Khiri Khan, Phang Nga, Phitsanulok, Mukdahan, Sakon Nakhon, Songkhla (excluding Hat Yai), Sa Kaeo, Surat Thani (excluding Ko Samui), Ubon Ratchathani |
| 351 | Chumphon, Phetchaburi, Surin |
| 350 | Nakhon Sawan, Yasothon, Lamphun |
| 349 | Kalasin, Nakhon Si Thammarat, Bueng Kan, Phetchabun, Roi Et |
| 348 | Chai Nat, Chaiyaphum, Phatthalung, Sing Buri, Ang Thong |
| 347 | Kamphaeng Phet, Phichit, Maha Sarakham, Mae Hong Son, Ranong, Ratchaburi, Lampang, Loei, Si Sa Ket, Satun, Sukhothai, Nong Bua Lamphu, Amnat Charoen, Udon Thani, Uttaradit, Uthai Thani |
| 345 | Trang, Nan, Phayao, Phrae |
| 337 | Narathiwat, Pattani, Yala |
Minimum Wage Rates in Thailand for Foreigners
In Thailand, the minimum monthly wage for foreign employees varies by nationality. The applicable rates are as follows:
*Please note, the minimum wage requirements for foreigners are monthly and not daily like for Thai nationals.
| Minimum monthly wage (THB) | Nationalité |
| THB 50,000 | USA, Canada, Western Europe, Australia, Japan |
| THB 45,000 | Hong Kong, South Korea, Singapore, Taiwan |
| 35 000 THB | Other Asian Countries (Excluding Japan, South Korea, Singapore, Taiwan, and ASEAN nations)
Eastern Europe, Russia, South Africa, Central & South America |
| 25 000 THB | ASEAN Countries (Cambodia, Laos, Myanmar, Vietnam) & Other African Nations |
Minimum Salary Requirements for BOI Promoted Companies
Companies promoted by the Board of Investment in Thailand follow their own specific rules and requirements regarding minimum salary levels for foreign employees.
The minimum salary requirements for a BOI promoted company are as follows:
| Position | Nouveaux Critères | Salaire Minimum (THB/mois) | Clarifications Supplémentaires |
| Cadre | Doit avoir au moins 20 ans (27+ recommandé).
Aucune expérience spécifique requise. |
150,000+ | Les postes de Président, PDG et Directeur Général sont exempts de cette exigence. |
| Management | Au moins 27 ans
Plus de 5 ans d'expérience professionnelle pertinente. |
75,000+ | Avec un diplôme pertinent : le salaire peut être réduit à 50 000 THB. |
| Personnel des opérations | Au moins 22 ans
2 à 5 ans d'expérience professionnelle pertinente. |
50,000+ | — |
| Ingénieur | Au moins 22 ans.
Avoir un diplôme d'ingénieur. Plus de 2 ans d'expérience professionnelle pertinente. Sans diplôme d'ingénieur 10 ans d'expérience professionnelle pertinente. |
75,000+ | Avec un diplôme et de l'expérience : le salaire peut être de 50 000 THB |
| Spécialiste informatique | Au moins 22 ans
2 à 5 ans d'expérience professionnelle pertinente. |
50,000+ | Si pas de diplôme pertinent : au moins 5 ans d'expérience professionnelle requis. |
| BPO / TISO / IBPO | Au moins 22 ans
Doit également pouvoir présenter une preuve de formation pertinente. |
35,000+ | — |
These salary requirements must be fully satisfied to obtain or renew BOI visa and work permit privileges, and they are reviewed during both the initial application and each renewal stage.
Social Security Contributions
As required under the Social Security Act, all employers (Thai and foreign) in Thailand must register and make contributions on behalf of their employees.
Companies are required to register with the Social Security Office (SSO) within 30 days of hiring their first employee. Once registered, both the employer and the employee contribute 5 percent of the employee’s monthly salary to the Social Security Fund, capped at a maximum contribution of 875 baht each per month.
The maximum monthly contributions are:
- For an employee: 5% of THB 17,500 = THB 875 per month.
- For an employer: 5% of THB 17,500 = THB 875 per month.
- Total maximum contribution (employer + employee): THB 1,750 per month.
Social Security filings and payments must be submitted by the 15th of the following month. Employers are also expected to maintain accurate payroll records to support compliance. Failure to comply with these obligations can lead to financial penalties and may create complications for companies employing foreign nationals, particularly when processing visa or work permit applications.
Employees Provident Fund
The Provident Fund is an optional retirement savings scheme designed to help employees build financial security for the future. Where applicable, contribution rates usually range from 2% to 15% of the employee’s monthly salary.
Employee Welfare Fund (EWF)
The Employee Welfare Fund is a newly introduced program under the Labor Protection Act to provide financial support to employees in cases of termination, resignation, or death.
Starting on the 1st October 2026, all employers in Thailand with 10 or more employees are required to register their staff with the fund, unless they already offer a registered provident fund or a comparable scheme that provides equivalent benefits.
An exemption is available for companies with alternative programs. However, this fund must cover all employees, not just a portion of the workforce.
Strict Labour Law Requirements
In Thailand, it is possible for an employer to terminate an employee’s employment at its discretion. However, should the dismissal be made without a statutory cause, as provided under the Labour Protection Act B.E. 2541, the company could be liable for statutory payments to be made to the employee, for example, severance pay, wages to the last working day and any unused vacation days.
Statutory Payments
When an employee leaves a company, whether with or without statutory cause, the employee may be entitled to specific statutory payments under Thai labour law. These may include severance pay, payment in lieu of notice, unused annual leave, and other mandatory entitlements depending on the circumstances of termination.
The details of these statutory payments can be found here:
| Paiements statutaires | Avec motif | Sans motif |
| Salaire jusqu'au dernier jour de travail du salarié | Oui | Oui |
| Indemnité de préavis | Non | Oui |
| Indemnité de licenciement | Non | Oui |
| Paiement des congés annuels | Uniquement les congés annuels accumulés et non utilisés | Congés annuels accumulés et au prorata |
| Autres paiements | le cas échéant | le cas échéant |
| Indemnité pour licenciement abusif | À la discrétion des tribunaux | À la discrétion des tribunaux |
Pour en savoir plus :
Tout ce qu'il faut savoir sur le licenciement d'un employé en Thaïlande
Rates of Severance Pay
Employees who have worked for at least 120 days are entitled to severance pay if they are dismissed without statutory cause.
Les taux des indemnités de licenciement sont les suivants :
| Période d'emploi | Taux de l'indemnité de licenciement |
| 120 jours mais moins d'un an | 30 jours |
| Un an mais moins de trois ans | 90 jours |
| Trois ans mais moins de six ans | 180 jours |
| Six ans mais moins de 10 ans | 240 jours |
| 10 ans mais moins de 20 ans | 300 jours |
| 20 ans ou plus | 400 jours |
Indirect Costs to be Considered
As well as the fixed salary and statutory contributions, employers in Thailand should also be aware of several indirect labour-related costs that are often overlooked or not considered.
Public Holidays and Paid Leave
Thailand has a relatively high number of national public holidays each year. These are fully paid days off, and the total can vary depending on government announcements. For businesses these recurring paid holidays can reduce productive working hours and increase the need for overtime or additional staffing during peak periods.
Sick Leave and Attendance-Related Impact
Under Thai labour law, employees are entitled to up to 30 days of paid sick leave per year. Employees may take up to two consecutive days of sick leave without needing to present a medical certificate. While the sick leave requirements were intended to support employee welfare, it can also create challenges for employers, particularly in industries that depend on consistent staffing levels. Some companies experience attendance issues that lead to higher overtime expenses etc.
Our Thoughts
In Thailand, company incorporation is mainly an administrative process that involves following a series of fixed steps including reserving a company name, filing the required forms, and registering with the relevant authorities. In Thailand there are many service providers that offer this service at a very low cost.
However, foreign investors should understand that incorporation is not the same as structuring a business properly.
From the beginning, several important points need careful consideration: the registered address, the company’s stated objectives, the shareholding structure, capital requirements, and any licensing restrictions connected to your intended activities. Changing a registered address later, for example, involves additional filings, fees, and formalities. A poorly drafted structure can restrict future expansion, create compliance complications, or lead to costly amendments that could have been avoided with proper planning at the beginning.
There are also operational considerations that must be addressed from the outset. Accounting systems, monthly tax filings and internal corporate documentation are mandatory requirements that must be satisfied in order to avoid penalties such as fines or restrictions on renewing a visa or work permit. They are part of running a Thai company from day one.
Thailand remains a competitive jurisdiction, particularly in terms of employment costs and social contributions. With proper planning and realistic budgeting, it can be a highly efficient place to operate.
Our experts are available to help structure your company correctly from the start and to provide a clear understanding of the true startup and compliance costs, so that there are no surprises later.
Veuillez noter que cet article est fourni à titre d'information seulement et ne constitue pas un avis juridique.
Nos consultations durent jusqu'à une heure et sont menées par des juristes experts qui parlent couramment l'anglais, le français et le thaï.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts about your company registration is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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FAQ
Comment calculer les droits d'importation en Thaïlande ?
Les droits d'importation en Thaïlande sont calculés sur la base de la valeur CAF (coût + assurance + fret) de votre produit. Le taux des droits varie de 0 % à 80 % selon ce que vous importez. Par exemple, si vous importez des appareils électroniques d'une valeur de 10 000 bahts avec un taux de droits de 10 %, vous devrez payer 1 000 bahts de droits d'importation.
Comment puis-je vérifier quel taux de droits d'importation s'applique à mes produits en Thaïlande ?
La Thaïlande utilise le Système harmonisé (code SH) pour classer les importations, en suivant spécifiquement la Nomenclature tarifaire harmonisée de l'ANASE (AHTN 2022). Vous devrez trouver le code SH de votre produit pour déterminer le taux de droit exact. Les taux sont indiqués dans le décret sur les tarifs douaniers de 2017.
Quels articles sont exemptés de droits d'importation en Thaïlande ?
Si vous êtes une société BOI (Board of Investment) ou enregistrée dans une zone économique spéciale (SEZ), vous pouvez bénéficier d'exonérations fiscales à l'importation sur les machines et certaines matières premières. De plus, les marchandises importées dans le cadre d'accords de libre-échange peuvent bénéficier de taux de droits réduits ou nuls si elles répondent aux exigences des règles d'origine.
La Thaïlande applique-t-elle des droits de douane à l'importation ?
Oui, la Thaïlande applique des droits d'importation allant de 0 % à 80 % selon la catégorie de produits. Le pays utilise soit un droit spécifique (montant fixe), soit un droit ad valorem (pourcentage de la valeur), selon celui qui est le plus élevé.
Dois-je payer des frais d'importation lorsque j'importe des marchandises en Thaïlande ?
Oui, vous devrez payer plusieurs frais, notamment des droits d'importation (0 à 80 %), une TVA de 7 % sur toutes les marchandises et éventuellement des droits d'accise si vous importez des articles de luxe, de l'alcool, du tabac ou des produits pétroliers. Une taxe locale de 10 % s'ajoute également aux droits d'accise pour certains articles.
Quel est le taux de TVA applicable aux articles importés en Thaïlande ?
Le taux standard de TVA en Thaïlande est de 7 % et s'applique à toutes les marchandises importées, quelle que soit leur valeur. Cela a changé en juillet 2024 : auparavant, les articles d'une valeur inférieure à 1 500 bahts étaient exonérés, mais désormais, tout est taxé.
Existe-t-il une franchise douanière pour les importations en Thaïlande ?
Il n'existe pas de seuil général d'exonération pour les importations commerciales. Depuis juillet 2024, toutes les marchandises importées sont soumises à une TVA de 7 %, quelle que soit leur valeur, ce qui a supprimé l'exonération dont bénéficiaient auparavant les marchandises de faible valeur inférieure à 1 500 bahts.
Les étrangers paient-ils des taxes à l'importation différentes de celles des ressortissants thaïlandais ?
Les taxes à l'importation ne diffèrent pas entre les étrangers et les ressortissants thaïlandais. Tout le monde paie les mêmes droits d'importation (0 à 80 %), une TVA de 7 % et les droits d'accise applicables. Cependant, pour importer
Puis-je réduire mes taxes à l'importation grâce aux accords commerciaux conclus par la Thaïlande ?
Oui, la Thaïlande a signé de nombreux accords de libre-échange avec des pays tels que le Japon, l'Inde, l'Australie et les pays de l'ANASE, qui peuvent réduire considérablement ou éliminer les droits de douane sur les marchandises éligibles. Vous aurez besoin de documents appropriés, tels qu'un certificat d'origine, pour bénéficier de ces avantages.
Pourquoi la Thaïlande prélève-t-elle des taxes à l'importation ?
Les taxes à l'importation ont plusieurs objectifs en Thaïlande : elles protègent les industries locales, garantissent le respect des normes de sécurité, génèrent des recettes pour l'État et contribuent à équilibrer les relations commerciales internationales. Le système est réglementé par la loi douanière et le décret sur les tarifs douaniers.
Quelle est la formule pour calculer les taxes à l'importation en Thaïlande ?
Voici un exemple simple : Si vous importez des marchandises d'une valeur de 10 000 bahts (valeur CIF) avec un droit d'importation de 10 %, vous calculerez : droit d'importation = 1 000 bahts, assiette TVA = 11 000 bahts (CIF + droit), TVA = 770 bahts (7 % de l'assiette TVA), taxe totale = 1 770 bahts. Pour les articles de luxe soumis à des droits d'accise, le calcul devient plus complexe.
Dois-je payer la TVA sur les importations de faible valeur vers la Thaïlande ?
Oui, à compter de juillet 2024, vous devrez payer une TVA de 7 % sur toutes les marchandises importées, quelle que soit leur valeur. L'exonération précédente pour les marchandises d'une valeur inférieure à 1 500 bahts ne s'applique plus.
Qui profite du système fiscal thaïlandais sur les importations ?
Les taxes à l'importation profitent au gouvernement thaïlandais grâce à la perception de recettes et contribuent à protéger les industries locales en rendant les produits importés plus chers. Cependant, les entreprises peuvent bénéficier d'une réduction des taxes grâce à des accords de libre-échange et à des programmes spéciaux tels que le statut d'entreprise BOI ou l'enregistrement SEZ.
Comment la TVA est-elle calculée sur les marchandises importées en Thaïlande ?
La Thaïlande applique une TVA de 7 % à la valeur totale, qui comprend la valeur CAF, les droits d'importation et tous les autres frais applicables. La TVA est donc calculée en plus des droits d'importation, et non uniquement sur la valeur du produit.
Quelle est la différence entre les droits d'importation et la TVA en Thaïlande ?
Il s'agit de frais distincts. Les droits d'importation sont d'abord calculés sur la base de la valeur CIF de votre produit (variant de 0 à 80 %). Ensuite, la TVA (7 %) est calculée sur le total de la valeur CIF, des droits d'importation et de tous les autres frais. Vous payez les deux.
Comment savoir si je dois payer des taxes à l'importation en Thaïlande ?
Si vous importez des marchandises en Thaïlande à des fins commerciales, vous devrez obligatoirement payer des taxes à l'importation. Vous devez vous enregistrer auprès des douanes thaïlandaises, obtenir une licence électronique valable 3 ans et utiliser le système e-Customs. Toutes les importations commerciales sont soumises à des droits de douane et à la TVA.
Quels produits bénéficient d'une réduction des droits d'importation en Thaïlande ?
Les sociétés BOI et les entreprises enregistrées dans les zones économiques spéciales peuvent bénéficier d'exonérations sur les machines et certaines matières premières. En outre, les marchandises éligibles au titre des accords de libre-échange avec des pays tels que le Japon, l'Inde, l'Australie ou les pays de l'ANASE peuvent bénéficier de droits de douane réduits ou nuls si vous disposez du certificat d'origine approprié.
Quels documents dois-je fournir pour vérifier mon taux de droits d'importation en Thaïlande ?
Vous devrez identifier le code SH de votre produit dans la nomenclature tarifaire harmonisée de l'ANASE (AHTN 2022). Le taux de droit spécifique dépend de la classification de votre produit et peut varier de 0 % à 80 %. Les douanes thaïlandaises tiennent à jour les barèmes tarifaires officiels.
Comment calculer les droits d'importation et la TVA pour les importations en Thaïlande ?
Voici la formule : calculez d'abord les droits d'importation (valeur CAF × taux des droits). Calculez ensuite la base de la TVA (valeur CIF + droits d'importation + frais éventuels). Enfin, TVA = base de la TVA × 7 %. Pour les produits de luxe, vous devrez également ajouter la taxe d'accise et une taxe intérieure de 10 % avant de calculer la TVA.
Y a-t-il des produits que je peux importer en Thaïlande sans payer de droits de douane ?
Les articles éligibles à l'exonération comprennent les machines et certaines matières premières destinées aux entreprises BOI et aux entreprises enregistrées dans les zones économiques spéciales (SEZ). Les produits importés dans le cadre d'accords de libre-échange peuvent également bénéficier d'une réduction ou d'une exonération des droits de douane. Vous devrez fournir les documents appropriés, tels qu'un certificat d'origine, pour bénéficier de ces avantages.
Les étrangers peuvent-ils détenir 100 % d'une entreprise en Thaïlande ?
Oui, les étrangers peuvent détenir 100 % d'une entreprise en Thaïlande, selon le type d'activité et la structure de l'entreprise. Les activités telles que l'exportation et la fabrication peuvent être entièrement détenues par des étrangers sans restriction, tandis que d'autres secteurs peuvent nécessiter une licence d'entreprise étrangère (FBL) ou une promotion du Bureau de l'investissements (BOI).
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