The Best Resources for Foreign Businesses in Thailand

Written by Umpire Legal on September 2, 2024. Posted in BLOG.

It can be intimidating for expatriates, international companies, and foreign investors in Thailand to navigate the complexities of zoning laws, real estate purchases, labor laws, work permits, and starting a Thailand-based business.

If you’re such a person or entity, you need to learn about the best resources for foreign business in Thailand in order to successfully set up shop in the country.

Regardless, it’s worth investing in Thailand because of its various government initiatives and incentives for foreign investors. It’s a nation filled with business-friendly policies while having a tiger economy that grows by the year.

The Key Government Agencies that Thailand Businesses Should Know About

The following agencies and business entities are important to remember because investors and entrepreneurs will be interacting with many of them while setting up shop locally in Thailand.

They’re critical when it comes to your business operation and market research as a foreign business in Thailand soil.

Here’s the list of vital business resources in Thailand that every entrepreneur should familiarize themselves with that range from embassies to government agencies.

Department of Business Development (DBD): Thailand regulates the business entities and companies working under its jurisdiction through the DBD. This agency offers help and business development guidance under the Ministry of Commerce (MOC).

You can get into contact with this governing body for the sake of business registration, including limited companies and representative companies for foreign corporations.

You can also seek more info about registered businesses with their assistance and database in accordance with your own needs. In other words:
- Business Registration Management: The agency is authorized to supervise business registration and do affirmations of business documents. It’s also responsible (along with a few other governing bodies) for the administration and registration of partnerships and companies in Thailand.
- Online Database of Registered Companies: The DBD website is itself a database of the registered companies in Thailand. You can obtain a list of company financial figures (publicly available) on the site as well, including their yearly profits.
- Miscellaneous Responsibilities: The DBD also handles e-commerce business promotion, manages patents and trademarks, deals with company partnerships, and so forth as one of the Ministry of Commerce’s sub-ministries or departments.
Board of Investment (BOI): The Thai government established BOI in 1966 to provide investment incentives and benefits to foreign and local companies seeking to profit from the organization’s promoted operations and industries.

The BOI government agency works under the Office of the Prime Minister. It’s responsible for promoting foreign investment into the Kingdom of Thailand by providing incentives, services, and pertinent information to interested parties and potential foreign investors.

In turn, foreign corporations can correspond with BOI to receive information on their investments and tax benefits as well as the covered Foreign Business Certificate (FBC) that offers them many privileges and incentives.

The benefits of BOI support to foreign corporations doing business in Thailand includes:

Protection from business nationalization
Permission to have complete land ownership
Permission to remit money in a foreign currency
Permission to recruit foreign skilled workers and professionals
Provides incentives for locals and foreigners to start businesses in attractive industries in Thailand

BOI specifically seeks skilled employees and experts who wish to obtain working privileges in the country under BOI. They need to follow the Investment Promotion Act of B.E. 2520 (1977) while doing so.

Ministry of Commerce (MOC): Thailand’s Ministry of Commerce main deal is to boost Thailand’s trade and economy as well as its positioning as one of Asia’s leading trading countries. It also serves as a Thai company registrar and a support source for entrepreneurs and SMEs both local and abroad.

The MOC is also a member of the Cabinet of Thailand. It’s specifically responsible for things like World Trade Organization (WTO) representation for Thailand, trade, exports, insurance, protection of intellectual property rights, consumer protection, the prices of important agricultural goods, and so forth.

The Foreign Business Act (FBA) regulates foreign ownership restrictions in reserved business activities. As a foreign business entity or worker, you must be aware that foreign investment in certain types of business is reserved for Thai nationals only and must comprise less than 50 percent of share capital.

The exception here is if your business is specially permitted by the Ministry of Commerce or otherwise exempt by a binding bilateral agreement between your country and Thailand. There are also exemptions for companies promoted by BOI.
The Securities and Exchange Commission (SEC): The SEC primarily deals with formulating policies to develop and promote Thailand capital markets. It also issues regulations on public limited companies for good measure.

Any enterprise seeking to start a public limited company in Thailand must gain approval from the SEC first before going ahead. They also need to file disclosure documents with the agency for good measure.

As far as foreign companies are concerned, they’re required to get SEC approval in order to offer their shares to Thai public investors. Additionally, they also need approval from SET’s Board of Governors to have their shares listed on SET in the first place.

The SEC supervises securities businesses, which shouldn’t be confused with the financial responsibilities of the Bank of Thailand, which is responsible for the supervision of everything else relating to financial regulation.
Stock Exchange of Thailand (SET): The SEC oversees the SET, which provides systems required to manage and conduct any business relating to securities trading while also serving as the center for the trading of listed securities.

SET is Thailand’s only stock exchange body. It was founded back on April 30, 1975. It’s currently the third largest stock exchange in the ASEAN region after the Indonesian and Singaporean stock exchanges by market capitalization at $489.95 billion as of November of 2023.

In terms of accumulated raised funds at ฿598.01 billion ($17.8 billion), it also served as the biggest IPO market in Southeast Asia from 2015 to 2020. For a decade straight, it was also the region’s most active trading venue with daily trading turnover going over $2 billion.

Bank of Thailand (BOT): The BOT acts as Thailand’s financial supervisor for finance companies, commercial banks, credit institutions, credit card companies, asset management companies, and e-payment services in the country.

Expatriates and foreign companies seeking to invest in Thailand should know more about the BOT because the BOT supervises foreign exchange transactions and businesses relating to foreign means of payment for the sake of maintaining the exchange rate.

The BOT was first founded as the Thailand National Banking Bureau. Then, when the Bank of Thailand Act was passed on April 28, 1942, the bureau took on the responsibility for all central banking functions of Thailand. The BOT then started operations on December 10, 1942.
The Revenue Department (RD): The Ministry of Finance’s largest tax collection agency is the RD. RD is also responsible for tax collection such as income tax, stamp duty, specific business tax, VAT, and so forth in accordance with the Revenue Code’s laws and regulations.

For instance, the RD issued Departmental Instruction No. Por 162/2566 (“DI No. 162/2566”) back on November 20, 2023, to provide further clarification of Section 41 Paragraph 2 of the Thai Revenue Code, on how any foreign-sourced income brought to the country from 2024 onwards will be subject to income tax.

Previously, this is regardless of the tax year the income was derived. The instruction clarifies that this shouldn’t apply to foreign-sourced income derived before January 1, 2024. Corporations should disclose their revenue source to the department then pay taxes once or twice annually.
Thailand Embassy and Consulates: All nationalities from abroad who wish to legally stay or travel to Thailand for business purposes must acquire work permits and the appropriate Thai visas.

There are multiple types of visas available for your Thailand stay, including the business visa, marriage visa, retirement visa, one-year Thai visa, and 90-day Thai visa.

As a foreigner or expat, you’ll have to get the right visa type in accordance with your needs and nationality.

You need to specifically coordinate with the Thailand embassy in your country or your country’s embassy in Thailand to get the right visa for your business or work requirements in the country.

Other consulates and embassies in Thailand include the following:

The Austrian Embassy in Bangkok
The Belgian Consulate in Lampang
The Greek Consulate in Chiang Mai
The American Embassy in Bangkok
The Australian Embassy in Bangkok
The Bangladeshi Consulate in Chiang Mai

Thailand Immigration Bureau: Before going to Thailand to work as a foreign expert or to establish a business as a foreign company, you’ll need to contact the Immigration Bureau of Thailand to obtain the Non-Immigrant Visa “B”. They can then apply for a work permit in Bangkok within 90 days.

The Thailand Immigration Bureau issues the Non-Immigrant Visa “B” for applicants wishing to enter the country for the purpose of gaining employment, conducting business, or going into conferences.

Its requirements include the following:

Payment of the fee for the Non-Immigrant Visa “B”.
A completed and signed Thailand Visa application form.
A passport that’s valid for at least another six months and has at least two blank visa pages left.
Your passport should be valid for at least 18 months if you’re applying for a one-year visa.
Proof of sufficient financial means to cover your stay. For example, you need ฿20,000 ($550) if you’re traveling solo and ฿40,000 ($1,100) if you’re traveling with your family.
Passport-sized picture of yourself with white background and taken within the last six months.
Make sure your entire face is visible and the headgear (for religious purposes only) doesn’t cover the whole face.
Glasses are allowed if they don’t have heavy frames and don’t cover your eyes.

Thailand Chamber of Commerce: The Thai Chamber of Commerce and the Board of Trade of Thailand is a central establishment that offers business suggestions, recommendations, consultation, and information to the Thai government regarding the economic development of the country.

It’s Thailand’s primary trade and service institution. It uses strong research, development, knowledge, networking, and corporate partners to boost the nation’s ability to compete and sustainably expand in the world trade stage.
Thailand National Statistic Office (NSO): The Thai NSO holds every basic data and statistic about Thailand, which includes an industrial census that can benefit your company because it gives you info regarding market size calculations.

For example, you can use the NSO to look up your industry’s number of businesses (your potential competition and their share in the local market).
Federation of Thailand Industries: Some Thai industry associations take in information from their members for the sake of regularly publishing informative industry reports that assists local and international businesses within the country.

However, not all associations volunteer their information actively to their members. The industry associations in Thailand that offer pertinent market and industry information include the following:

Iron and Steel Institute
Thai Feed Mill Association
Machinery Intelligence Unit
Thailand Automotive Institute
Thai Plastic Industries Association
Thai Bioplastic Industry Association
Thai Cement Manufacturers Association
Thai Photovoltaic Industries Association
Thai Game Software Industry Association

Getting Assistance from Professional Legal Services in Thailand

The best resources for foreign businesses in Thailand are key government agencies that help set up your business as a foreigner dealing with the laws of another country.

Granted, by partnering with our law firm, we’ll guide you through every logistical hoop and legal issue needed to pursue when building a business in Thailand, but it pays for everyone in your company to know these key government agencies.

Foreign entrepreneurs, especially first-time investors, should avail of assistance from an established company registration provider or Thai law firm to assist them in registering and setting up their company properly according to Thailand’s specifications and regulations.

The Bottom Line of Thailand Legal Counsel

Our legal services will guide you when dealing with the requirements and paperwork of these legislative bodies, agencies, and entities, covering things like permits, approvals, submissions, and documents for deals like starting a limited business or representative company in Thailand.

If you’re an expatriate or foreigner representing a foreign company in need of legal services, feel free to visit the Umpire Legal offices in Thailand for consultation. We make dealing with Thailand law for foreigners as safe and as easy as possible.

Get in touch with us today to find out more about how we can help with your legal needs.