Thailand offers several compelling reasons for businesses to establish a presence in the country, making it a prime destination for both local and international investors. The eligibility criteria for company formation in Thailand are designed to ensure that businesses operate in compliance with local laws and regulations. First, at least one shareholder is required to form a company, with a minimum of three shareholders for a private limited company. Shareholders can be Thai nationals or foreign investors, although foreign ownership is generally limited to 49% of the company’s shares, while the remaining 51% must be held by Thai nationals, unless the business qualifies for specific exemptions under the Foreign Business Act.
The company must also appoint at least one director, who can be either a Thai or a foreign national. Directors are responsible for the day-to-day management and must sign contracts on behalf of the company. A registered office address in Thailand is necessary for the company’s operations, and this must be confirmed during the registration process.
Additionally, the company must meet the minimum capital requirements, which vary depending on the type of business. For most businesses, a minimum of THB 15,000 in paid-up capital is required, but certain industries may have higher capital requirements. Foreign-owned businesses may also need to provide additional documentation to obtain licenses from relevant authorities. Compliance with tax and labor laws is mandatory for all businesses in Thailand.
