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Read full answerYes, your company must be registered at a physical address in Thailand, and this is where you will receive official documents and notices. If you rent this address, you must first get permission from the property owner to agree to...
Read full answerNew business formation in Thawi Watthana follows Thailand's national legal framework while also engaging Bangkok Metropolitan Administration requirements at the district level. Most entity registrations are handled centrally by the Department of Business Development under the Ministry of Commerce, while location approvals, signboard tax, and certain operating licenses are administered locally through the Thawi Watthana District Office. Founders typically choose between partnerships and companies, with the private limited company being the most common for small to medium enterprises. Foreign ownership is regulated by the Foreign Business Act and sector specific laws, and additional incentives or permissions may be available through the Board of Investment.
The standard steps include name reservation, preparing a Memorandum of Association, registering the company, obtaining a tax ID, registering for VAT when required, opening a corporate bank account, registering as an employer for social security once staff are hired, and securing any sector specific licenses. Companies must keep proper accounts, undergo annual audit, and file reports and taxes on strict timelines. If foreigners will own shares or work as directors or employees, immigration and work permit planning should be coordinated early.
- Choosing the right entity type and share structure to match liability, tax, and investment goals.
- Structuring foreign ownership to comply with the Foreign Business Act, or obtaining an exemption, license, or BOI promotion where appropriate.
- Drafting a robust shareholder agreement that covers voting, transfer restrictions, founder vesting, and dispute resolution.
- Reviewing and negotiating commercial leases in Thawi Watthana to ensure zoning, permitted use, and landlord consents align with your activities.
- Securing industry specific licenses and local permits for restaurants, retail shops, warehouses, clinics, education centers, logistics, or light manufacturing.
- Planning visas and work permits for foreign directors and staff, including capital, Thai to foreign employee ratios, and corporate documents needed for applications.
- Setting up tax and accounting systems, VAT readiness, withholding procedures, and compliance calendars to avoid penalties.
- Protecting intellectual property, trade names, and brand assets, and complying with the Personal Data Protection Act for websites and customer data.
- Navigating bank account opening, foreign currency remittances, and evidence of inbound capital for future dividend or capital repatriation.
- Handling post incorporation changes such as adding shareholders, increasing capital, moving offices within Thawi Watthana, or changing directors.
- Entity options and basics: Thailand recognizes sole proprietorships, ordinary and limited partnerships, private limited companies, and public limited companies. The private limited company is most common. It requires at least three shareholders, at least one director, a registered address in Thailand, and annual audit and filings. There is no general legal minimum registered capital, but immigration and sector licensing may impose practical minimums.
- Name reservation: Reserve up to three names with the Department of Business Development. Names must be distinct and cannot include restricted terms. The reservation is time limited, so prepare incorporation documents promptly afterward.
- Incorporation documents: You will prepare a Memorandum of Association, Articles of Association, a list of shareholders, a director affidavit, and evidence of the registered address. Landlord consent and a copy of the house registration for the premises are commonly required.
- Foreign ownership rules: The Foreign Business Act restricts foreign majority ownership in many service and trading activities unless you obtain a Foreign Business License or qualify for a Foreign Business Certificate under a treaty or receive BOI promotion. Many businesses choose Thai majority shareholding to avoid licensing, coupled with a carefully drafted shareholder agreement. Always structure control and compliance lawfully.
- Visas and work permits: Foreign directors and staff usually need a non immigrant B visa and a work permit. Common baseline requirements include paid up capital of 2 million baht per foreign employee and a ratio of four Thai employees per foreign employee, subject to exemptions and BOI policies.
- Taxes and registrations: Apply for a corporate tax ID within 60 days of incorporation or starting operations. Register for VAT if your annual turnover meets the threshold, currently 1.8 million baht, or earlier if required by your industry or customers. The standard VAT rate is currently 7 percent and is subject to periodic government review. Withhold tax on certain payments to vendors and file monthly returns as required.
- Accounting and filings: Keep proper books, appoint a licensed auditor, and hold an annual general meeting within four months of fiscal year end. File audited financial statements with the Department of Business Development within one month after the AGM. File the annual corporate income tax return within 150 days of the fiscal year end, and a half year estimate mid year.
- Employment and social security: Comply with the Labour Protection Act for contracts, wages, overtime, holidays, and termination. Register the company and employees with the Social Security Office within 30 days of hiring. If you have 10 or more employees, prepare written work rules and file them with the local labour office.
- Location and local permits in Thawi Watthana: Choose a premises zoned for your intended activity. For retail and food businesses, you may need public health and signage approvals from the Thawi Watthana District Office. If you install a commercial sign, pay signboard tax annually. Warehousing or light manufacturing may trigger factory or environmental permissions. The local Area Revenue Office covering Thawi Watthana verifies offices for VAT and may request photos, signage, and lease documents. Virtual offices are often not accepted for VAT.
- Sector licenses: Certain sectors require special licenses such as food and beverage, transport and logistics, education, medical, e commerce, and factories. Check the relevant regulator and allow lead time for inspections and approvals.
- Data and consumer rules: If you collect personal data, comply with the Personal Data Protection Act. If you sell to consumers, observe pricing and advertising rules and maintain proper receipts and refund policies.
- Banking and foreign exchange: To support future repatriation of dividends or capital, ensure foreign investment funds are remitted through a Thai bank with proper foreign exchange transaction documentation. Banks in Bangkok typically require in person account opening by an authorized director and the company documents.
The private limited company is the most common because it limits shareholder liability, allows flexible ownership and management, and is well understood by banks, landlords, and regulators. Partnerships and sole proprietorships are simpler but expose owners to more liability and are less suitable for growth or foreign investment.
In many service and trading sectors, 100 percent foreign ownership is restricted by the Foreign Business Act. You can seek a Foreign Business License, obtain a Foreign Business Certificate under a treaty, or pursue BOI promotion if your activity qualifies. Some manufacturing and export activities may allow full foreign ownership more readily.
Name reservation can be completed in a few days. Company registration can often be finished within one to two weeks after documents are ready. Add time for tax registrations, bank account opening, and any sector licenses. If foreign business licensing or BOI promotion is needed, expect a longer timeline.
Yes for most cases. The registered address must be a real location with landlord consent. For VAT registration and inspections, authorities may require photos of the premises, company signage, and evidence of business activity. Virtual offices are often not accepted for VAT registration in Bangkok.
Typical documents include the Memorandum of Association, Articles of Association, list of shareholders, director affidavit, copies of ID cards or passports, the lease and landlord consent for the address, and the building's house registration copy. After registration you will receive the company affidavit and corporate registration number.
Companies pay corporate income tax on profits, currently at a standard 20 percent rate, with reduced rates for qualifying SMEs. VAT at the standard 7 percent applies if you exceed the threshold or register voluntarily. Withholding tax applies to many service payments, and stamp duty may apply to certain instruments. Local signboard tax applies if you display a commercial sign at your premises.
You must register when your annual turnover reaches 1.8 million baht, or earlier if required by your business model or customers. Some activities require VAT regardless of turnover. Register before you exceed the threshold to avoid penalties.
A private limited company needs at least three shareholders and at least one director. There is no requirement that a director be a Thai national, but immigration and licensing rules should be considered if a foreigner will play a managing role.
Foreign staff generally need a non immigrant B visa and a work permit issued based on the employing company. Common requirements include sufficient paid up capital and a Thai to foreign employee ratio. BOI promoted companies may enjoy relaxed ratios and faster processing.
Restaurants and retail often fall under activities where foreign majority ownership may be restricted unless you obtain a license or qualify for an exemption. You also need local permits from the district for food sanitation and signage. Consult a lawyer to assess lawful structures and licensing paths before committing to a lease or fit out.
- Department of Business Development, Ministry of Commerce - company and partnership registration, name reservation, corporate filings.
- Thawi Watthana District Office, Bangkok Metropolitan Administration - local permits for signage and certain public health activities, local inspections, and signboard tax collection.
- Revenue Department - corporate tax ID, VAT registration, withholding tax filings, and tax audits through the Area Revenue Office serving Thawi Watthana.
- Social Security Office, Bangkok Area - employer registration, employee contributions, and benefits inquiries.
- Department of Employment, Ministry of Labour - work permits and employer obligations for foreign workers.
- Immigration Bureau - visas and extensions for foreign directors and employees.
- Board of Investment - investment promotion, tax incentives, and relaxed foreign ownership or work permit facilitation for eligible projects.
- Department of Industrial Works - factory licensing and environmental compliance for manufacturing or warehousing with machinery.
- Thai Food and Drug Administration and relevant public health offices - licenses for food, beverage, cosmetics, and medical related businesses.
- Department of Intellectual Property - trademark and patent registration for brand and innovation protection.
- Clarify your business model, target location in Thawi Watthana, and whether any restricted activities will be involved.
- Consult a Thai business lawyer to confirm the best entity type, ownership structure, and whether a Foreign Business License, treaty certificate, or BOI promotion is advisable.
- Shortlist premises and have your lawyer review the lease for zoning, permitted use, signage rights, and landlord consent required for company registration and VAT.
- Reserve the company name and prepare incorporation documents, including a shareholder agreement that aligns with Thai law.
- Register the company with the Department of Business Development, obtain the tax ID, and plan for VAT registration if applicable.
- Open a corporate bank account and, if bringing in foreign capital, ensure foreign exchange transaction documentation is issued for each inbound transfer.
- Register as an employer with the Social Security Office, set up payroll and withholding processes, and prepare work rules if you will have 10 or more employees.
- Apply for sector specific licenses from the Thawi Watthana District Office or other regulators, and arrange any required inspections before opening.
- If hiring foreigners, align visa and work permit timelines with company readiness, paid up capital, and Thai staffing ratios.
- Implement bookkeeping and audit support, set a compliance calendar for monthly taxes and annual filings, and schedule periodic legal reviews as your business grows.
This guide provides general information only. For advice tailored to your situation in Thawi Watthana, consult a qualified Thai lawyer or licensed advisor.
