Belaws Thailand
  • thailand
  • legal
    • Legal
      • All Legal services
      • Urgent. Same day advice
      • Immediate legal consultation
      • Document Review
    • Our expertise
      • Employment Law
      • Merger & Acquisitions
      • Restructuring & Insolvency
      • Banking & Finance
      • Real Estate
      • Startups Services
      • Blockchain Expertise
      • Energy, Mining & Infrastructure
      • Intellectual Property
      • Tax Expertise
      • Telecommunication, Media & Technology
      • Commercial Transactions
      • Family Law
      • Download your free copy of our guide, 'Starting a Business in Thailand for Foreigners,' featuring essential insights for successfully establishing a business in Thailand.
  • incorporation
    • Incorporation
      • All Incorporation services
      • Business feasibility check
      • Market research
      • Entry strategy
    • Companies type
      • BOI Company
      • Limited company
      • Branch Office
      • Representative Office
      • U.S Treaty of Amity company
      • Startups Services
    • Business Licenses
      • Foreign Business License
      • E-commerce License
      • Factory License
      • Important License
      • Restaurant License
      • See all Licences
  • Accounting & secretary
    • accounting & secretary
      • All Accounting & Secretary services
      • Urgent. Same day advice
      • Immediate consultation
      • Document review
    • corporate
      • Draft minutes
      • Changing directors
      • Share transfer
      • Registered address change
      • Capital increase
      • Meetings AGM
      • Meetings (EGM)
      • Closing a company
    • Legalisation
      • Notarisation and legalisation
      • Translation document
    • accounting
      • Bookkeeping & tax filings
      • Annual audit
      • Payroll
      • Payroll outsourcing
      • Tax
      • VAT Registration
      • Corporate Income Tax
      • Personal income tax
  • Corporate
    • accounting & secretary
      • All Accounting & Secretary services
      • Urgent. Same day advice
      • Immediate consultation
      • Document review
    • corporate
      • Draft minutes
      • Changing directors
      • Share transfer
      • Registered address change
      • Capital increase
      • Meetings (AGM)
      • Meetings (EGM)
      • Close a company
      • Translation document
      • Notarisation & Translations
      • Notarisation & Legalisation
      • Translation documents
    • accounting
      • Bookkeeping & tax filings
      • Annual audit
      • Payroll
      • Payroll outsourcing
      • Tax
      • VAT Registration
      • Corporate Income Tax
      • Personal Income Tax
  • visas
    • visas
      • All Visas services
      • Urgent. Same day advice
      • Document review
      • Immediate Visa consultation
    • live in thailand
      • Thailand LTR Visa
      • Thailand Elite Visa
      • Retirement Visa
      • Marriage visa
      • Change your visa type
      • See all visa options
    • work in thailand
      • PEO services
      • Non immigrant B Visa
      • Work Permit
      • BOI Visa & Work Permit
      • Change your visa type
  • BLOG
  • CONTACT
    • fr_FRFrançais
    • en_USEnglish
  • Menu Menu
  • INCORPORATION
  • LEGAL
  • ACCOUNTING & SECRETARY
  • VISAS
  • Blog
  • IMMEDIATE CONSULTATION
  •  
  • en_USEnglish
  • fr_FRFrançais
Belaws Home ›› Thailand ›› Blog ›› Starting a Small Business in Thailand as a Foreigner in 2024

incorporation

Starting a Small Business in Thailand as a Foreigner in 2025

Latest Update : April 3, 2025- Published date : November 6, 2023

Starting a small business in Thailand for foreigners presents unique challenges. The Foreign Business Act governs foreign participation in various business sectors and categories within Thailand. Despite these complexities, Thailand’s thriving economy and favorable business environment make it an attractive hub for entrepreneurs.

When starting a small business in Thailand as a foreigner, it is important to consider the following important points.

Immediate Consultation
Investment opportunities in Thailand

Key points

  • Small businesses can set up a company in Thailand for as little as 50,000 THB without a work permit and visa.
  • A BOI promotion removes many barriers to doing business in Thailand, such as the necessity of a Thai partner and the restrictions of the Foreign Business Act.
  • Companies approved for a BOI promotion are eligible for special incentives such as 100% foreign ownership, tax incentives, and reduced requirements to support work permits.
  • All foreigners require a proper visa to stay in Thailand. If they plan to work they must get a Work Permit.

Do you need a Thai Partner when starting a Small Business in Thailand?

Under the Thai Civil and Commercial Code, companies can be 100% foreign-owned and are not required to have a Thai Partner. However, the ability to operate a company like this is entirely dependent on the business activities of the company. 

The Foreign Business Act of 1999 (FBA) regulates foreign investment in Thailand and restricts foreign companies from undertaking about 50 types of businesses, including service activities, consulting, restaurants etc.

In relation to the 50 restricted business activities established under the FBA, foreign ownership of a limited company is capped at a maximum of 49.99% (unless a Foreign Business Licence or a BOI promotion has been obtained). Therefore, a Thai partner may be required to hold the majority share.

Read more:

Understanding the Foreign Business Act in Thailand

How can 100% foreign-owned small businesses in Thailand perform restricted activities?

The Foreign Business License (FBL) is a permit issued by the Department of Business Development under the Ministry of Commerce in Thailand, which allows foreign businesses to engage in restricted business activities under the Foreign Business Act as a 100% foreign-owned entity.

However, businesses should be aware that it is very difficult to receive approval for an FBL, and the application criteria are very strict.

Read more:

Foreign Business License in Thailand – Ultimate Guide 

What are the requirements to start a small business?

To start a limited company in Thailand, you will need to satisfy the following criteria:

  • 2 shareholders
  • One or more directors (individuals, not corporate)
  • 50,000 THB minimum capital (2M THB if you want to hire a foreign employee)
  • A registered corporate address in Thailand

The shareholders must be individuals to register the company. Once registered, the shares can be transferred to corporate shareholders.

Read more:

Benefits of Setting up a Limited Company in Thailand

Is your business in Thailand eligible for a BOI promotion?

When starting a business in Thailand, the Board of Investment (BOI) should always be the first consideration. Companies approved for a BOI promotion are eligible for special incentives. These BOI incentives could significantly benefit foreign companies looking to establish a presence in Thailand. However, it is important to note that the BOI only offers promotions for specific business activities in specific target industries.

Read more:

Discover the Qualifying Business Activities for a BOI Promotion in Thailand

It is also important to note that the minimum capital requirement for a BOI company is 1 million THB. However, small businesses that work in software areas may be eligible for promotions under category 8.1, which is much more accessible for small businesses.

Incentives available include:

100% foreign ownership

BOI-promoted companies can be 100% foreign-owned.

BOI companies and the Foreign Business Act

Companies that receive a BOI promotion will be granted a Foreign Business Certificate, allowing them to undertake restricted business activities.

The reduced quota for hiring foreign employees

Unlike other company structures, BOI-promoted companies are not subject to any quotas when hiring foreign skilled employees. Thai Limited Companies cannot hire a foreign employee unless the following quotas are satisfied:

  • A ratio of 4:1 Thai to foreign employees. 
  • 2 Million THB is registered capital
  • 3 months of Social Security Registration payments
  • Be registered for VAT

Removing this quota removes a massive barrier to employing foreign staff and is a huge advantage to a BOI promotion.

Other incentives:

  • Permit to own land
  • Streamlined visa and work permit processes 
  • Permit to remit money abroad in foreign currency

Tax Incentives:

Depending on the promotion offered to the company by the BOI, companies may be eligible for certain tax incentives.

Read more:

Unlocking Land Ownership Rights for BOI Promoted Companies

Do you need a Work Permit and Visa when starting a small business in Thailand?

Work permits and the correct visa type are required for any foreigner working or who intends to work in Thailand. 

Please note Thailand has a broad definition of work and employment, which isn’t linked to revenue or income. For example, a foreigner can be a shareholder and/or a company director and not require a work permit. However, should they do something such as sign a document on behalf of the company, this will be considered work and will be required to possess a work permit.

Failure to obtain a valid visa and work permit could result in punishments for the offending foreigner and their company.

Read more:

Work permits in Thailand

To obtain a work permit, the applicant must:

Get a Non-Immigrant B visa: The applicant should obtain a Non-Immigrant B visa (90 days). This visa can be obtained from your home country’s Thai embassy or consulate. 

Read more:

Can I change tourist visa to business visa in Thailand? A Step-by-Step Guide

Obtaining the work permit: After obtaining the Non-Imm B visa and arriving in Thailand, the applicant must apply for a work permit.

Extending the visa: a 1-year extension of the Non-Immigrant B can be obtained after the work permit has been issued. 

Please note that holders of a Non-Immigrant O (based on marriage to a Thai Spouse) can also apply for a work permit using this visa type. 

Read more:

Work Permits for Foreigners Married to Thai Nationals

Please see here for more information about how to apply and what documents are needed.

How can Belaws help?

For more information about how to start a small business in Thailand for foreigners, why not talk to one of our experts now?

Talk to an expert

If you want to learn more about how our experts can help with your accounting and secretary needs, please click here. For more details about our incorporation services, please click here.

Please note that this article is for information purposes only and does not constitute legal advice.

Share this post
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on LinkedIn
  • Share by Mail

Receive a free copy of our
Foreign Entrepreneur’s
Handbook for 2025

Legal Services Thailand

"(Required)" indicates required fields

*Please use a valid and permanent email address; temporary or disposable emails will not be considered.
This field is for validation purposes and should be left unchanged.

Frequently asked questions

Can a foreigner start a business in Thailand?

Yes, foreigners can start a business in Thailand. However, there are some restrictions, depending on the type of business. For example, foreigners cannot own more than 49% of a company that operates in certain industries, such as retail and tourism.

How much does it cost to start a business in Thailand?

The minimum capital requirement to start a limited company in Thailand is 50,000 THB. However, if you want to hire a foreign employee, the minimum capital requirement is 2 million THB.

Can Americans start a business in Thailand?

Yes, Americans can start a business in Thailand. The same rules apply to Americans as to any other foreigner.

Can Americans own 100% of a business in Thailand?

American citizens can own 100% of a business in Thailand, but only if they have a Foreign Business License (FBL) or if the business is promoted by the Board of Investment (BOI).

Can a US citizen buy a business in Thailand?

Yes, a US citizen can buy a business in Thailand. However, they must comply with all of the same rules and regulations that apply to foreign business owners.

Why is it hard to do business in Thailand?

There are a few reasons why it can be difficult to do business in Thailand. One reason is the bureaucracy. It can be time-consuming and expensive to get the necessary permits and licenses. Another reason is the language barrier. Thai is the official language of Thailand, and many Thais do not speak English fluently. Finally, the Thai culture can be difficult for some foreigners to adapt to.

What is BOI promotion Thailand?

A BOI promotion can remove many of the barriers to doing business in Thailand, such as the necessity of a Thai partner and the restrictions of the Foreign Business Act.Companies approved for a BOI promotion are eligible for special incentives such as 100% foreign ownership, tax incentives, and reduced requirements to support work permits.

Related articles

Sponsored Work Permit in Thailand

Sponsored Work Permit in Thailand

15/06/2022
Sponsored Work Permits in Thailand provide employee management services and administrative assistance.
June 15, 2022/by jonathan
boi visa & work permit thailand BOI approves new investment schemes in Thailand

BOI approves new investment schemes in Thailand

21/06/2022
BOI Thailand approves new investment schemes and incentives worth 209.5 billion baht (US 6.2 billion).
June 21, 2022/by jonathan
Thailand is considering a new Labor law for Work-from-Home arrangements

Thailand is considering a new Labor law for Work-from-Home arrangements

23/08/2022
The Thai parliament has recently passed the first reading of the so-called Work-from-home Bill, which seeks to amend the country’s Labour Protection Act (LPA).
August 23, 2022/by jonathan

Subscribe today

Subscribe today

To our newsletter for all the latest legal news
in South East Asia, Belaws updates and
special promotions on our services.

To our newsletter today for all the latest legal news in South East Asia,
Belaws updates and special promotions on our services.

+66 (0) 63 695 5945

We are open:
Monday – Friday
9 am – 6 pm (UTC+7)

Email us

SERVICES

Legal

Incorporation

Accounting & Secretary

Visas

Immediate ConsultationNew

COMPANY

About

Careers

Press & Media

Terms of Services

Privacy Policy

Sitemap

Resources

Belaws Thailand Blog

Facebook Thai Visa Belaws

Ebook on Condo purchase

Ebook Employment Law

Our Offices

Thailand

Singapore

Hong Kong

Cambodia

Vietnam

Belaws 2017 - 2025.
Belaws provides information and software only. Belaws is not a "lawyer referral service" and does not provide legal service or participate in any legal representation.
Belaws is not a law firm or a substitute for an attorney or a law firm. The use of Belaws is subject to our Terms of Use.

Thailand Elite Membership Program latest update Nov 2023 Thailand Elite Membership Program latest update Nov 2023Thailand Elite Membership Program latest update Nov 2023 5 Types of Companies for Foreigners in Thailand 5 Types of Companies for Foreigners in Thailand
Scroll to top