How to Register a Sole Proprietorship (รายบุคคล) in Thailand

For many in Thailand, the first step into entrepreneurship is a sole proprietorship (รายบุคคล). It requires only basic paperwork, modest fees, and approval from the Department of Business Development (DBD). This simplicity makes it one of the most common starting points for freelancers, consultants, and small shopkeepers.

By registering as a sole proprietorship, entrepreneurs gain official recognition for their business. A DBD-issued certificate not only adds credibility but also makes it easier to open bank accounts, sign contracts, and work with both Thai and international clients. This structure is especially popular among small shops, independent service providers, and freelancers who want to keep operations lean and straightforward without committing to a more complex legal framework.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Thailand?

Thailand officially refers to this business model as รายบุคคล. Internationally, it’s comparable to what many countries call a sole trader or independent contractor: one person operating a business on their own.

How does a sole proprietorship (รายบุคคล) work in Thailand?

รายบุคคล vs other business structures in Thailand

Sole proprietorships and limited companies are both common in Thailand, but they differ in cost, complexity, and liability:

Step-by-step guide: How to register a sole proprietorship in Thailand

Step 1: Check your eligibility

In Thailand, a sole proprietorship can generally only be registered by Thai nationals or by US citizens under the US-Thai Amity Treaty. Foreigners married to Thai citizens can register a sole proprietorship in their Thai spouse's name, but not in their own name.

Step 2: Choose your business name

Submit three potential names to the DBD. Names linked to royalty, government offices, or offensive terms are not permitted. The DBD will approve one of the names for your sole proprietorship.

Step 3: Gather required documents

You will need the following documents to register a sole proprietorship in Thailand:

• Copy of your Thai ID card or passport
• House registration document or landlord consent letter
• A map of the business address
• Completed application form
• Taxpayer number
• VAT certificate if applicable

Step 4: Register with the DBD

Applications can be filed in person or via the DBD e-Registration portal. Processing typically takes only a few business days.

Step 5: Pay fees and contributions

Registration fees are minimal. VAT registration is required only if annual turnover exceeds THB 1,800,000.

Step 6: Complete post-registration obligations

If your turnover exceeds the VAT threshold, register within 30 days. Maintain proper accounting records and file annual personal income tax returns. In addition, sole proprietors are required to issue proper tax invoices and receipts for all transactions, especially once registered for VAT. These invoices must include your tax ID, business name, and address, as well as details of the goods or services provided. Some businesses may also need industry-specific licenses

Sole proprietors in Thailand are personally responsible for meeting their tax and compliance obligations. These include:

• Income tax: Business income is taxed as part of the owner’s personal income. Progressive tax rates apply, ranging from 0% to 35% depending on annual earnings. Filing is done annually with the Revenue Department. Sole proprietors must register for a taxpayer identification number if they do not already have one.
• VAT: The standard VAT rate is 7%. Registration is mandatory if your annual turnover exceeds THB 1,800,000. Once registered, you must charge VAT on invoices and file monthly VAT returns. Businesses under the threshold may register voluntarily, which can be beneficial if they work with VAT-registered clients.
• Social security contributions: Sole proprietors are not automatically enrolled. Contributions are compulsory only if you employ staff. However, individuals may opt in as voluntary insured persons through the Social Security Office, which provides access to healthcare, pensions, and unemployment benefits.
• Record-keeping: Sole proprietors must maintain accurate accounting records, including invoices, receipts, and tax filings. These should be kept for at least five years.

Launch your contracting career and stay compliant with Deel

Registering a sole proprietorship gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
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• Keep accurate records for tax season
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• Spend your earnings in USD with the Deel Card
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• Enjoy contractor perks from 150+ partners

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FAQs

What is the minimum capital required to start a รายบุคคล in Thailand?
There is no capital requirement.

Do รายบุคคล need to register for VAT?
Only if annual turnover exceeds THB 1,800,000.

How much are the standard contributions?
Costs are minimal. VAT and sector-specific license fees apply depending on the business type.

Can a รายบุคคล hire employees?
Yes, but then social security contributions and labor law compliance are mandatory.

How long does registration take?
Typically, a couple of business days.

Can foreign nationals register as รายบุคคล in Thailand?
Generally, no, except for US citizens under the Treaty of Amity or in cases where the registration is in the name of a Thai spouse.

Do รายบุคคล need a separate business bank account?
Not legally required, but strongly recommended for financial clarity.

What happens if I stop working as a รายบุคคล?
Notify the DBD, cancel VAT registration if applicable, and complete final tax filings.

Are there government incentives?
Direct incentives for sole proprietors are limited. Board of Investment (BOI) incentives may apply if scaling into larger operations.

Can I use Deel as a รายบุคคล to get paid by international clients?
Yes. Deel enables global payments with transparent fees and multiple currency options.

Does Deel generate compliant invoices?
Yes. Deel automatically creates legally compliant invoices for Thai regulations and international standards.

Can Deel help with taxes?
Yes. Deel provides downloadable tax reports and payment records to support compliance, though it does not replace an accountant.

Does Deel offer contracts for freelancers?
Yes. Deel offers locally compliant contract templates.

Can I access benefits through Deel as a รายบุคคล?
Yes. Deel provides optional perks like health insurance and retirement savings.