Starting a business in Thailand: your gateway to ASEAN and beyond

Thailand is strategically located at the heart of mainland Southeast Asia. It provides direct access to markets in Cambodia, Laos, Myanmar and Vietnam. As a key member of ASEAN, it serves as a gateway to a vast and fast-growing consumer market.

In addition to its growing economy, Thailand has 17 free trade agreements covering 24 trading partners, including Sri Lanka, Bhutan and the European Free Trade Association.

Despite the tariff changes by the United States (US), Thailand remains popular as a 'China Plus One' destination for companies looking to relocate production. It also offers investor-friendly policies and economic zones that support cross-border trade.

The Thailand Board of Investment (BOI) offers a range of incentives to attract foreign investment into key "promoted" sectors including the manufacture of electronic products, for example and the biotechnology and medical industries. These include tax holidays, relaxed foreign ownership rules and streamlined processes. Similar measures are drawing foreign investors to Thailand’s Eastern Economic Corridor (EEC) and other economic zones.

Thailand has shifted from low-cost manufacturing to clusters of high-value industries. Key sectors include automotive (Thailand is known as the Detroit of Asia), electronics and petrochemicals.

Thailand's workforce is highly skilled in automotive engineering, electronics and digital services. Labour costs in Thailand are competitive compared with China, Taiwan and South Korea.

These are the most common structures used by foreign investors to establish a private limited company in Thailand.

Under Thailand's Foreign Business Act (FBA), a company is generally considered foreign if 50% or more of its shares are foreign-owned. Where the proposed activity is restricted, foreign investors may need a Foreign Business Licence (FBL), BOI promotion or a treaty-based exemption, such as the US-Thai Treaty of Amity. Nominee shareholder arrangements that circumvent foreign ownership restrictions are prohibited.

Incorporation generally involves name reservation, preparation and filing of the memorandum of association, a statutory meeting and final company registration. The statutory meeting covers matters such as the company's articles, share allotment, directors and auditor are approved.

A Thai company must have a registered office address in Thailand. A company seal is commonly used for corporate documents and may be required by banks, counterparties or government authorities in certain circumstances. Businesses should also ensure that their registered address satisfies any applicable registration, licensing and tax requirements.

Value-added tax (VAT) registration is generally required where annual turnover exceeds THB 1.8 million, although some businesses register earlier for operational reasons. VAT filings are generally submitted monthly. Thailand's standard corporate income tax (CIT) rate is 20%, subject to applicable exemptions or incentives.

A standard Thai company seeking to sponsor a foreign employee or director will generally need to meet work permit requirements, which may include minimum registered capital and Thai employee ratios. In many cases, this includes at least four Thai employees per foreign work permit, although exemptions or different rules may apply for BOI-promoted companies and certain other cases.

Spanning the Chonburi, Rayong and Chachoengsao provinces, the EEC is designed for high-tech industries, including next-generation automotive, robotics and aviation. It is governed by the Eastern Economic Corridor Office (EECO) under the Office of the Prime Minister of Thailand, with investment promotion supported by the Thailand BOI.

A smart industrial estate located within the EEC and near Bangkok, Amata City Chonburi Industrial Estate, developed by Amata Corporation Public Company Limited, offers well-developed utilities and a One Stop Service Centre (OSSC) designed to help foreign companies navigate Thai regulations and permits. It operates under the oversight of the Industrial Estate Authority of Thailand (IEAT) and is popular for automotive and electronics manufacturing.

A key hub for businesses in heavy industry, petrochemicals or energy, Map Ta Phut Industrial Estate in Rayong Province features Thailand's largest industrial port (Map Ta Phut Port), making it a vital gateway for the import and export of chemicals and raw materials. The estate is managed by the Industrial Estate Authority of Thailand (IEAT), with port operations overseen by the Port Authority of Thailand (PAT).

Situated in Tak Province on the border with Myanmar, the Tak Special Economic Zone (SEZ) is a critical hub for companies looking to tap into the East-West Economic Corridor (EWEC) under the Greater Mekong Subregion (GMS) Program. It is administered by Thailand’s Office of the National Economic and Social Development Council (NESDC) and supported by the BOI. This zone is specifically designed for labour-intensive industries, such as textiles and furniture and logistics moving goods between Thailand and Myanmar.

As Thailand's southern gateway to Malaysia and the wider ASEAN Economic Community (AEC), the Songkhla SEZ is an important location for logistics, rubber processing and Halal-certified food production. Located in Songkhla Province, it is overseen by the NESDC and supported by the BOI, serving as a bridge for businesses looking to serve the Thai and Malaysian economies simultaneously.

As each zone operates under different regulatory bodies, it is important to verify which agency governs the chosen area to determine applicable incentives. We can assist you in finding the location that best meets your Thailand company set-up needs.

In practice, the optimal approach depends less on origin and more on how ownership constraints, licensing requirements and sector eligibility apply under Thailand's FBA. Once these constraints have been considered, companies from different regions often follow similar structuring pathways.

Where foreign ownership restrictions apply, investors may need to rely on BOI promotion, treaty-based exemptions or industry-specific licensing to achieve the desired operating structure. Work permit and visa requirements may apply to foreign staff, with eligibility depending on company structure and compliance status.

Misalignment between business activities and regulatory requirements can delay approvals or restrict operational scope.

Below are the primary considerations for key global regions and how these factors influence practical entry strategies.

The UK is a well-established investor in Thailand, with many companies using the country as a base for ASEAN expansion. Trade frameworks such as the Enhanced Trade Partnership (ETP) support closer cooperation in areas such as automotive, digital trade and green technology, aligning with Thailand's broader economic development priorities.

Organisations such as the UK Department for Business and Trade in Thailand and the British Chamber of Commerce Thailand can help British entrepreneurs with market entry and networking opportunities.

For many UK investors, a key consideration is structuring operations to align with both commercial objectives and Thailand's regulatory requirements. This depends on the nature of the business activity and whether it falls within restricted sectors under Thai law.

In practice, UK investors must determine whether their business activity can operate within permitted foreign ownership thresholds or whether BOI promotion or licensing is required to support the intended business model.

Entry approach: Bangkok is a common choice for UK fintech and digital companies, supported by infrastructure, connectivity and access to professional talent. Advanced manufacturers may consider the EEC, where eligible projects can benefit from BOI-aligned tax and non-tax incentives and industrial infrastructure.

The European Union (EU) is an important trading and investment partner for Thailand, with strong investment flows across manufacturing, green energy and digital services.

In practice, European companies must assess how their intended business activity is treated under Thailand's FBA. For regulated sectors, this typically means determining whether a Foreign Business Licence (FBL) is required or whether the project qualifies for BOI promotion to enable majority or full foreign ownership.

While frameworks such as the 2024 EU–Thailand Partnership and Cooperation Agreement (PCA) and the 2025 European Free Trade Association (EFTA) comprising Iceland, Liechtenstein, Norway and Switzerland support closer economic cooperation, it should be noted that they do not override Thailand's domestic ownership and licensing framework. Entry structuring still depends primarily on sector eligibility and regulatory approval pathways.

Entry approach: European companies typically establish operations in Bangkok, which offers extensive infrastructure and a growing consumer base. The EEC is the strategic choice for high-tech manufacturing, offering BOI-aligned incentives and integrated industrial infrastructure. Chiang Mai has also attracted interest from tech start-ups and remote-working professionals seeking an alternative to Bangkok.

The US is one of Thailand's most important economic partners, serving as a major export market and a significant source of foreign direct investment, particularly in the technology and automotive sectors.

American investors can benefit from the 1966 Treaty of Amity and Economic Relations, which allows qualifying US companies to maintain majority ownership or, in many cases, full ownership of their Thai operations. This leaves them effectively exempt from certain restrictions that would otherwise apply under the FBA. However, certain activities remain outside the scope of Treaty protection and may still be subject to foreign ownership restrictions or licensing requirements.

Where Treaty of Amity protection does not apply or is commercially unsuitable, US investors must assess BOI promotion or FBL routes, depending on sector eligibility and operational goals.

The choice between these routes depends on whether the business activity qualifies for Treaty protection or requires regulatory approval under the FBA.

The US–Thailand Trade and Investment Framework Agreement (TIFA) also provides a platform for bilateral discussions on trade, regulatory issues and investment conditions. However, it does not override Thailand's domestic ownership or licensing framework.

To manage local licensing and statutory requirements, the American Chamber of Commerce in Thailand and the TIESC can provide support to US businesses setting up a presence in Thailand.

Entry approach: Many US companies establish operations in Bangkok to access its financial district and well-developed logistics network. The EEC is a key destination for eligible heavy industry and aerospace firms due to its strong alignment with BOI-promoted sectors and export-oriented supply chains. The tourist regions of Phuket and Koh Samui have also attracted entrepreneurs in hospitality, wellness and related service industries.

As a founding member of ASEAN, Thailand serves as a central industrial and logistics hub for regional supply chains and cross-border operations.

ASEAN countries collectively remain among Thailand's major trading partners, alongside China and the US companies from markets such as Malaysia, Singapore and Vietnam often use the country as a production base or regional operating platform for Southeast Asia.

ASEAN businesses considering expansion into Thailand may find the ASEAN Business Advisory Council and the TIESC useful sources of information and support.

In practice, ASEAN investors are subject to the same FBA framework as other foreign entities, with ownership restrictions and licensing requirements applying based on the nature of the business activity. While regional agreements facilitate trade and economic cooperation, they do not remove the need to structure investments in accordance with Thailand's foreign ownership rules.

ASEAN companies therefore typically assess whether their business can operate under a Thai-majority structure, requires an FBL or qualifies for BOI promotion to secure operational flexibility and foreign ownership rights.

Entry approach: Bangkok serves as a digital and financial gateway for ASEAN firms, particularly those operating in fintech, e-commerce, technology and related services. The EEC is well suited to high-value manufacturers in the region, such as EVs, electronics and automation-related industries. Meanwhile, Thailand's border SEZs can support companies looking to combine Thailand's logistics infrastructure with manufacturing and sourcing opportunities in neighbouring markets.

The Thailand-China relationship has expanded beyond traditional trade into manufacturing, EVs, digital infrastructure and other higher-value sectors. The Mainland China remains one of Thailand's most important trading partners and a major source of investment, while Hong Kong continues to play an important role as a regional finance and capital-markets hub.

Frameworks such as the ASEAN–China FTA and the Regional Comprehensive Economic Partnership support trade flows between Thailand, the Mainland China and the wider region, although they do not remove the need to comply with Thailand's domestic ownership and licensing rules.

Chinese Mainland companies often consider Thailand as a gateway to the ASEAN market, particularly for manufacturing, EVs, electronics and regional supply-chain operations. Eligible projects in the EEC may also qualify for BOI-aligned tax and non-tax incentives. Hong Kong can support regional expansion through its financial services ecosystem, offshore RMB capabilities and capital-markets infrastructure.

In practice, Chinese Mainland and Hong Kong investors must structure their entry in line with Thailand's FBA, with ownership restrictions and licensing requirements applying depending on the nature of the business activity. Market entry requires an assessment of whether the intended operations fall within restricted sectors and whether BOI promotion or an FBL is required to enable majority or full foreign ownership.

Entry approach: Huai Khwang in Bangkok is often described as the city's New Chinatown and has attracted Chinese-speaking businesses, service providers and entrepreneurs. The EEC is a major destination for industrial and higher-value projects, including EVs, electronics, logistics and renewable energy. Location decisions are ultimately driven by whether the project qualifies for BOI promotion, requires licensing approval or can operate under permitted foreign ownership thresholds.

The UAE serves as a key headquarters location for outbound GCC investment into Asia and Thailand continues to attract interest from both UAE-based investors and those across the wider Gulf region. Areas of cooperation and investment interest commonly cited by Thai and UAE stakeholders include food security, logistics, hospitality and tourism, healthcare-related services and industrial investment.

According to Thai trade data for 2025, the UAE was Thailand's largest trading partner within the GCC and the Middle East region, while negotiations on the Thailand–UAE CEPA continued to advance. Organisations such as the UAE–Thai Business Council, the Abu Dhabi Chamber of Commerce and Industry and Thailand’s BOI play an important role in supporting cross-border commercial activity.

Companies should evaluate how their corporate activities are classified under Thailand's FBA, alongside applicable trade treaties, in order to determine potential ownership restrictions, licensing requirements and investment structuring considerations.

For investors from the wider GCC, market entry typically relies on Thailand's domestic investment framework, relevant double taxation agreements and BOI-promoted investment incentives, as no Thailand–GCC free trade agreement is currently in force.

Entry approach: The EEC is often well suited to UAE and GCC investors pursuing industrial and logistics projects, as well as businesses seeking access to Thailand's advanced manufacturing ecosystem, due to its established port infrastructure and investment incentives. Bangkok is commonly selected for regional management, financial services and commercial operations, while the Map Ta Phut and Laem Chabang corridors are particularly relevant for energy, petrochemicals and supply chain investments due to their industrial infrastructure, deep-sea port facilities and position within the EEC.

Companies in Thailand are required to maintain accurate corporate records and statutory registers throughout their lifecycle, typically at the registered office.

Key records include:

• Shareholders' and beneficial ownership records

• Director and officer registers

• Registered office records

• Constitutional documents (such as Articles of Association (AoA) or local equivalents)

• Board and shareholder resolutions and meeting minutes

Many jurisdictions including Thailand impose event-driven obligations requiring businesses to notify DBD of significant changes, such as director appointments or resignations, shareholder changes, registered address updates or share capital amendments, typically within 14 days.

Companies in Thailand are required to keep maintain accounting records, financial statements and supporting documentation in accordance with the Accounting Act B.E. 2543 (2000) and Thai Financial Reporting Standards (TFRS).

Tax compliance, administered by the Revenue Department, includes:

• Corporate income tax: Registration and filing corporate income tax returns under the standard 20% rate, submitting PND 51 within two months of half-year end and PND 50 within 150 days of financial year-end

• Value-added tax (VAT): Recurring PP30 filings for VAT-registered businesses. Submitting monthly PP30 VAT returns and settling payments by the 15^th day of the following month under the standard 7% rate

• Payroll obligations: Reporting employee remuneration and deductions (PND 1)

• Withholding tax: Deducting withholding tax at source from qualifying domestic and cross-border payments (including service fees, royalties and dividends) and filing monthly returns (PND 1, 3, 53 or 54) by the 7th day of the following month

• Social contributions: Mandatory employer contributions to the SSO

Following incorporation, companies are required to submit recurring filings to the Revenue Department, the DBD and, where applicable, sector-specific regulators.

These filings may include:

• Annual and periodic tax returns submitted through the Revenue Department (including PND 50 and PND 51)

• Financial statements filed with the DBD

• Value-added tax (VAT) filings (PP30) submitted through the Revenue Department

• Licence renewals and sector-specific regulatory reports, including requirements under the FBA or BOI schemes

Many filings are completed through electronic systems, including the DBD e-Filing system and the Revenue Department's online portal.

Maintaining effective governance and meeting reporting obligations supports corporate good standing, operational continuity and compliance with regulatory requirements.