We recommend three potential ways to structure a Thailand Company Limited as follows:

• Thai Owned
• American Owned
• BOI Foreign Owned

All company’s doing business in Thailand are required to register the amount of capital they intend to invest.

After registration of the company, 25% of the investment capital is require to be paid up by the shareholders. Note such capital can be used immediately to pay company start up expenses, make loans, pay salaries, etc. and is not required to be left in the company’s bank account.

The remaining capital is not required to be paid up unless called by the company or required by a condition of a Thailand government agency for purposes of granting a business license or special privileges.

The minimum capital requirement for a foreigner to receive a 1 year work permit / visa in Thailand is 2,000,000 Baht and must be fully paid up. Note a ratio of 4 to 1 Thai employees to foreign employee is also required for a foreigner to receive a 1 year work permit / visa.

The corporate income tax rate in Thailand is generally 20%. Note that company’s in Thailand are generally allowed to take losses for the first 5 years of operation as a general practice of the Revenue Department.

All Thai companies are required by law to keep monthly accounting records and have an independent audit at the end of each fiscal year.

Labor laws in Thailand are very protective in favor of the employees and significant severance payments are required even if you want to terminate employees after a period of over 1 year. Note Thailand labor laws should be considered before significant hirings are made at your business in Thailand.