Thailand is Southeast Asia’s second-largest economy and a regional hub for automotive, electronics, food processing, tourism and logistics. Every year thousands of foreign companies source products, set up operations or find partners here. Knowing how Thai businesses are organised makes that process faster and safer.
Types of business entity in Thailand
Thai businesses are registered with the Department of Business Development (DBD) under the Ministry of Commerce. The most common forms are:
| Entity | Thai name | Key points |
|---|---|---|
| Private limited company | บริษัทจำกัด | By far the most common structure. Name ends in “Co., Ltd.” Shareholders’ liability is limited to their shares. |
| Public limited company | บริษัทมหาชนจำกัด | Can offer shares to the public; required for listing on the Stock Exchange of Thailand. Name ends in “Public Company Limited” (PCL). |
| Limited partnership | ห้างหุ้นส่วนจำกัด | At least one partner has unlimited liability. Common for small family businesses (“Ltd., Part.”). |
| Registered ordinary partnership | ห้างหุ้นส่วนสามัญนิติบุคคล | A juristic person in which all partners have unlimited liability. |
| Sole proprietorship | กิจการเจ้าของคนเดียว | Owned by one individual; not a separate legal entity. |
| Branch or representative office | — | Used by foreign companies to operate in Thailand without setting up a Thai subsidiary, subject to licensing. |
How to verify a Thai company
Before signing a contract or paying a deposit, check that the company really exists and is active:
- Get the registration number. Every Thai juristic person has a 13-digit registration number, which is also its tax ID.
- Search the DBD records. The DBD’s online DataWarehouse lets you look up a company’s registered name, status, registered capital, address, business objective and filed financial statements.
- Match the details. Make sure the name, address and directors match what the company told you, and that bank account names match the registered company name.
- Check the track record. Look at how long the company has been registered, whether it files financial statements, and its online presence and references.
- Visit or video-call. For large orders, a factory visit or third-party inspection is standard practice.
Companies on THBusiness that pass these checks are marked with a Verified badge.
Foreign ownership rules
Under the Foreign Business Act B.E. 2542 (1999), a company in which foreigners hold half or more of the shares is treated as a “foreign” business. Foreign businesses are restricted from many activities listed in the Act — including most services — unless they obtain a Foreign Business License or qualify for an exemption.
This is why many Thai companies with foreign investors are structured with foreign shareholding of up to 49%. Common routes to majority foreign ownership include BOI promotion, a Foreign Business License, and, for US companies, the US–Thailand Treaty of Amity.
BOI investment promotion
The Thailand Board of Investment (BOI) grants incentives to companies in targeted industries such as electric vehicles, electronics, digital, biotech, medical and advanced manufacturing. Depending on the activity and location, benefits can include corporate income tax holidays, import-duty exemptions on machinery, permission for 100% foreign ownership and easier work permits for foreign experts. Projects in the Eastern Economic Corridor (EEC) can receive additional benefits.
Key taxes at a glance
- Corporate income tax: standard rate of 20% on net profit, with reduced rates for qualifying SMEs.
- Value added tax (VAT): businesses with annual turnover above THB 1.8 million must register; the rate has been held at a reduced 7% for many years.
- Withholding tax: applied to many business payments such as services, rent and dividends.
- Specific business tax: applies instead of VAT to certain activities, such as banking and real estate sales.
Finding suppliers in Thailand
Thailand is a major exporter of vehicles and auto parts, electronics, processed food, rubber products, rice and seafood. To find the right supplier:
- Browse the THBusiness categories to build a shortlist by industry.
- Focus on the right region — for example, the EEC for automotive and petrochemicals, Ayutthaya and Pathum Thani for electronics, or the South for rubber and seafood.
- Ask for the company’s registration number, certifications (such as ISO or GMP) and export references.
- Attend trade fairs in Bangkok and request samples before placing larger orders.
Major business regions
Bangkok and its surrounding provinces host most company headquarters, finance and professional services. The Eastern Economic Corridor — Chonburi, Rayong and Chachoengsao — is the centre of heavy industry and home to Laem Chabang, Thailand’s largest port. Chiang Mai leads the North, Khon Kaen and Nakhon Ratchasima the Northeast, and Phuket and Songkhla the South. See all locations on our regions page.
This guide is general information, not legal or tax advice. Rules change, so confirm details with the relevant Thai authorities or a licensed professional before making decisions.