Which Company Setup Fits a Foreign-Owned Services Business in Thailand?

Start with the service, not the company form

A Thai-registered company with at least half of its capital held by foreigners is treated as foreign under the foreign-business rules. That does not prevent the company from being registered. It means the actual services must be checked to determine whether they are open, restricted or available through a permission route.

The main setup routes

Standard Thai limited company

This may fit when the proposed activity is not restricted or another rule permits the foreign ownership structure. The business description must be specific enough to check before registration.

Thai company with a Foreign Business Licence

Many service activities can fall within a restricted category. Where the activity is eligible, the company may need a Foreign Business Licence before operating that service.

BOI-promoted company

If the project and activity qualify for investment promotion, a BOI-promoted company may use the promotion and related foreign-business certificate route. Eligibility depends on the promoted activity and the conditions attached to the project.

Treaty or other specific permission

Some investors or activities may qualify under a treaty or another specific law. These routes should be confirmed before relying on them in the company structure.

Representative office

A representative office is for non-revenue support to its overseas head office or affiliates. Its limited scope includes sourcing goods or services, checking quality and quantity, advising on head-office products, sharing information on new products or services, and reporting Thai business trends. It should not accept purchase orders, make sales, negotiate with third parties or earn service income.

Regional office

A regional office coordinates and supports branches or affiliated companies in the region. Its internal scope may include supervision, management advice, training, financial management, marketing support and product development. It is not the ordinary structure for selling services to Thai customers or earning customer revenue in Thailand.

What determines the right route?

• The exact services the company will provide
• The nationality and profile of the investors
• How and where the company will earn revenue
• Whether the activity qualifies for a licence, certificate or BOI promotion
• The proposed capital, staffing and operating structure

The practical conclusion

Do not choose the entity first and investigate the restrictions later. Define the real service, confirm the foreign-ownership route, and then prepare the company registration around that decision.

This article provides general information. The available route depends on the proposed activity, investor profile and operating plan.