How to Set Up an Entity in Thailand

Thailand is one of Southeast Asia’s most attractive destinations for international expansion, thanks to its strategic location, developed infrastructure, strong manufacturing and services base, and access to ASEAN markets. For companies planning long-term operations, opening a local entity in Thailand offers greater control over hiring, contracts, revenue, and compliance, while signaling commitment to customers, partners, and regulators.

Entity setup in Thailand is structured and relatively formal. While the process is well-defined, foreign businesses often face challenges around ownership restrictions, minimum capital rules, licensing, and Thai-language documentation. In return, companies gain operational autonomy, the ability to directly employ staff, and full access to the local banking and tax system—making entity formation a strong option for sustained growth.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Thailand?

Opening an entity in Thailand means registering a legal business structure with the Thai authorities so it can operate, enter contracts, hire employees, open bank accounts, and pay taxes locally. The process is overseen primarily by the Department of Business Development and results in a juristic person under Thai law. Foreign companies typically choose between setting up a Thai limited company or registering a branch of a foreign company, depending on ownership and licensing needs.

Entity overview in Thailand

Here is a summary of the key features of company formation in Thailand:

Step-by-step guide: How to open an entity in Thailand

Step 1: Choose the right structure

Most foreign companies establish a Thai private limited company, which offers limited liability and is widely accepted by banks, clients, and regulators. Branch offices may suit companies that want to operate without forming a separate legal entity, but they face stricter licensing and reporting requirements. Representative offices are limited to non-revenue-generating activities.

Step 2: Verify business name availability

You can check business name availability using the online tool on the DBD website. Name reservation is completed through the DBD’s online system and is typically valid for 30 days. Names must not duplicate or closely resemble existing registered entities and cannot include restricted or misleading terms.

Step 3: Prepare incorporation documents

Companies must prepare and submit incorporation documents, many of which must be in Thai. Required documents typically include:

• Memorandum of Association
• Articles of Association
• List of shareholders
• Director appointment forms
• Registered address confirmation

Official forms are available from the Department of Business Development.

Step 4: Register with the Department of Business Development

Incorporation filings are submitted to the DBD either online or in person. Upon approval, the company receives a Certificate of Incorporation and a company registration number, officially establishing it as a legal entity in Thailand.

Step 5: Register for tax and social security

After incorporation, companies must register with the Revenue Department of Thailand for corporate income tax and VAT, if applicable. Employers must also register with the Social Security Office within 30 days of hiring employees.

Step 6: Open a corporate bank account

A Thai corporate bank account is required for capital injection, payroll, and local transactions. Banks typically require the Certificate of Incorporation, company affidavit, shareholder list, director identification, and in-person verification. Account opening timelines vary and may take one to three weeks.

Step 7: Set up payroll and employment compliance

To legally employ staff, companies must implement compliant payroll processes, issue employment contracts aligned with Thai labor law, enroll employees in social security, and withhold personal income tax. Payroll filings are submitted monthly to the Revenue Department and Social Security Office.

Discover how Elemental Enzymes accelerated regulatory approvals and market entry with Deel.

Post-registration obligations

After incorporation, companies in Thailand must stay compliant with local governance, tax, and employment laws. Typical requirements include:

• Tax and financial reporting: File corporate income tax returns, VAT filings, and annual financial statements according to the schedule set by the Revenue Department and under Thai Financial Reporting Standards, which are aligned with IFRS.
• Corporate registers: Maintain up-to-date records of directors, shareholders, and beneficial owners and report changes to the DBD within the required timeframe.
• Compliance tracking: Monitor all tax, licensing, and corporate filing deadlines through a compliance calendar or professional service provider to avoid penalties.
• Licenses and renewals: Renew business licenses or sector-specific permits with the relevant ministry or authority based on their renewal cycles.
• Recordkeeping: Retain accounting, payroll, HR, and transaction records for at least five to ten years, depending on the document type, as required by Thai law.
• Employment law compliance: Adhere to labor, benefits, social security, and data-protection regulations, including compliant contracts, payroll reporting, benefits contributions, and mandatory insurance coverage.

Taxes and financial considerations

Key obligations include:

• Corporate income tax: 20%, with annual filing and mid-year advance payments
• VAT: 7%, applicable once annual revenue exceeds THB 1.8 million (≈ USD 50,000)
• Payroll/social contributions: Social security contributions capped monthly, shared by employer and employee
• Accounting standards: Thai Financial Reporting Standards, aligned with IFRS

Discover how Climate-KIC navigated complex restructuring with Deel.

Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Thailand?
Typically 4–8 weeks. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
THB 2,000,000 (≈ USD 55,000) for most foreign-owned companies, depending on activity.

Can foreign companies own 100 % of an entity in Thailand?
Generally, no, unless the business qualifies for an exemption under the Foreign Business Act or receives a BOI promotion.

Do I need a local director or representative?
At least one director is required; residency is not mandatory, but practical and banking considerations often apply.

How much does it cost to register an entity?
Government fees and basic costs typically range from THB 50,000–150,000 (≈ USD 1,400–4,100), excluding professional services. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no. However, Deel’s Employer of Record (EOR) lets you hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Thailand?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?

Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.