What are forms of business organization allowed in  Thailand?
Foreign companies can establish the corporate either under the Thai commercial laws or the Foreign Business Act (FBA), which has been in force since March 3, 2000. Forms of corporate structures allowed in Thailand are as follows:


Three types of partnerships are registered partnerships, unregistered partnerships, and limited partnerships. While the liabilities attached to each are different, the rules governing them are the same which generally follow Western law.

Limited companies

Two types of limited companies are private and public limited companies. Private limited companies in Thailand are basically similar to Western corporations; that is they are registered with a Memorandum of Association and the Articles of Association and shareholders’ liabilities are limited to the remaining unpaid amount, if any, of the par values of their shares. The companies must have at least 7 promoters and a minimum of 7 shareholders are required at all time.

The procedure for incorporating public limited companies is similar to that for a private limited company. The companies require a minimum of 15 promoters for the formation and registration of the Memorandum of Association. There must be 100 or more shareholders whose liability is limited to no more than the unpaid amount (if any) of the par value of the shares. It is unlawful to restrict share transfers for purposes other than to protect the rights and benefits of the company allowed by law, or to maintain a Thai/foreigner shareholder ratio.

Joint Ventures

It is described as a group of natural and/or juristic persons entering into an agreement to conduct a business together. Despite being unrecognized as a legal entity under the Civil and Commercial Code, it is recognized by Revenue Code and, therefore, subject to corporate taxation.

Branches of foreign companies

A company incorporated under Foreign Laws may establish a branch office to do business in Thailand. Subject to the provision of Foreign Business Act, a branch may be allowed to operate for a certain period with a requirement of working capital being brought into Thailand within certain intervals over a period of time. The extension of the original duration of the license to operate may be granted.

A Representative office of foreign corporations

The activities of a representative office is limited to ‘non-trading’ activities such as sourcing of goods or services in Thailand, inspecting and controlling quality of goods which its head office purchases, disseminating information about new products and services of its head office, and reporting to its head office on local business development and activities. Working capital contributions in respect to branches apply.

In the present, a representative office is defined in accordance with the Regulation of the Office of the Prime Minister in Establishment of Work Permit and Visa Center (No.3) B.E. 2544 (A.D.2001). It is classified within the List 3 (21) Service Business under Foreign Business Act.

Regional Operating Headquarter (ROH)

An ROH means a juristic person or partnership organized under Thai law that provides services to its domestic or overseas affiliated companies/or branches. Such services are concerning administrative, technical, management and other supporting roles, including research and development and training. A package on ROH, introduced on August 16, 2002, provides tax breaks and incentives to attract foreign companies to establish regional headquarters in Thailand.