Thailand continues to be a strong hub for foreign investors looking to establish regional operations and grow with an export focus in Southeast Asia. However, as of 2026, the company formation and residence/work permit arrangements for foreigners have evolved into a more “document-focused” structure. New practices, especially aimed at reducing doubts about nominee (apparent Thai partner), can prolong the process if not structured correctly.
This article discusses the options for foreigners to establish companies in Thailand, critical checks introduced with the 2026 updates, the connection between work permits and residence, and financial/practical thresholds step by step. Additionally, we clarify why professional coordination is decisive in terms of time and risk costs during this process.
Establishing a Company in Thailand: Basic Framework
Foreign investors most commonly establish a private limited company in Thailand. However, the foreign partnership ratio and the nature of the business are critical due to the Foreign Business Act approach in Thailand.
- 100% foreign ownership: Possible in some activities (e.g., permitted areas like technology, export-focused businesses).
- Restricted sectors: In some industries, foreign ownership is limited, and there may be an expectation of at least 51% Thai partner.
The most important point here is this: Even if the foreign share is “permitted,” as of 2026, authorities will examine the actual ownership and control structure of the company more closely. Therefore, structures that appear correct on paper but are risky in practice can cause serious issues in the future regarding bank accounts, tax registrations, work permits, and renewals.
2026 DBD (Department of Business Development) Updates: Why Are They Important?
As of January 1, 2026, the DBD has raised the document standard during the company formation phase to reduce foreign influence and nominee risk. New checks are particularly triggered in the following situations:
- Presence of a foreign partner in the company,
- Foreign individual being a director,
- Foreign individual having signing authority,
- Having 5 or more companies registered at the company address.
Main Document Burdens Introduced in 2026
- Bank statement for Thai shareholders: Thai partners are required to provide a 3-month bank statement to demonstrate financial capability to cover share payments.
- Additional proof for shared addresses: If there are 5+ companies at the address, documents showing permission from the property owner and usage rights (lease agreements, title deeds, etc.) may be requested.
- “Foreign influence” is interpreted more broadly: The previous focus solely on share ratios now also includes control indicators like signing authority.
Therefore, the most common issue experienced in 2026 is not the “rejection of establishment” but rather schedule delays due to additional document requests. The process can be prolonged, especially in cases of multiple company addresses or suspicious partnership compositions.
Company Formation Process in Thailand (Step by Step)
The general flow for company formation for foreigners in Thailand is as follows:
1) Company Name Reservation
An application is made to the DBD with 1–3 Thai and English name alternatives. Approval usually comes within approximately 1 business day, and the reservation is valid for 30 days.
2) Preparation of Memorandum of Association (MOA)
The MOA includes the following headings:
- Company purposes and activities,
- Registered address (in some cases, virtual office may be used),
- Capital structure,
- Promoter information: Foreigners can also be promoters provided they are over 20 years old (typically, applications proceed with a maximum of 3 promoter information).
3) Statutory Meeting and Articles of Association (AoA)
Founders become shareholders/directors. The requirement for at least 3 shareholders comes to the forefront (this threshold is significant in practice for limited companies).
4) DBD Registration and Fees
The registration fee is calculated based on the registered capital: 5,000 THB per 100,000 THB (upper limit 250,000 THB). Although the minimum registered capital practically starts at ~50,000 THB, this amount is generally insufficient for foreigners with work permits and immigration plans (details below).
How Long Does Establishment Take?
With lawyer support, the total duration in many cases progresses within 1–2 weeks. After 2026, especially with additional checks in shared addresses and proof of Thai shareholder financing, longer scenarios may be seen.
Foreign Partnership Structure: “Nominee” Risk and Correct Setup
The sensitive point of Thai regulations is nominee structures where Thai partners only appear on paper. The 2026 DBD regulations have introduced bank statements regarding the source of funds for Thai shareholders precisely for this reason.
In practice, two critical rules emerge:
- Real Partnership: The Thai shareholder’s share is evaluated not only by ratio but also by financial capacity and control traces.
- Correct Address Setup: Multiple company addresses are no longer an “easy solution”; the document burden and likelihood of scrutiny have increased.
For some investments, phased structuring (e.g., first establishing 100% Thai and then adding foreign or vice versa) can be a tool for “business plan management.” However, this approach is not expected to be compliant in every case; it should be evaluated together with the nature of the activity, capital, and immigration goals.
Capital: Minimum and “Required for Work Permit” Capital Are Not the Same
The minimum registered capital to establish a company in Thailand may seem low: ~50,000 THB. Moreover, the obligation to deposit the entire “paid-up” capital at the time of establishment may not be applied with the same weight in every scenario; capital can be deposited after establishment and increased later.
However, the most commonly misunderstood point by foreigners is this: the capital for company formation and the paid-up capital required for work permit sponsorship are different thresholds. When you move to the immigration aspect of the business, the numbers grow significantly.
Work Permit and Residence in Thailand: Company Alone Is Not Enough
For foreigners to work legally in Thailand, the following sequence is generally required:
- First, a Non-Immigrant B (Non-B) visa (usually 90 days; extendable),
- Then a work permit.
The work permit is linked to employer/position/location. There may be a requirement for multiple permits for multiple jobs or roles. Additionally, some industries are banned or restricted for foreigners (e.g., certain manual jobs, retail, etc., are practically risky/limited).
Basic Eligibility for the Company to Issue a Work Permit for a Foreigner
- The company must be registered in Thailand; it should proceed in compliance with tax registrations such as tax ID/VAT.
- Paid-up capital: In most scenarios, there is an expectation of 2,000,000 THB paid-up capital per foreign employee. If the company is majority foreign-owned, this threshold may rise to 3,000,000 THB.
- Employment Ratio: The rule of having at least 4 Thai employees per foreigner is a common requirement (in practice, upper limits on the number of permits per company may be seen).
- BOI (Board of Investment) promoted companies: BOI approval in suitable sectors can provide a more flexible framework for foreign employment and permit processes.
For the current framework in BOI applications, the official BOI page can be referenced.
Work Permit Application: Process and Duration
The work permit application progresses through the Ministry of Labor and is managed with a target of approximately 7 business days in many cases. The use of online platforms for new applications has become mandatory; this makes the document preparation standard more critical.
Required Documents: Employee and Employer Side
Files are prepared as employee (foreigner) and employer (company) packages.
- Employee (foreigner) documents:
- Passport (all pages, signed copies),
- Non-B visa (generally, at least 6 months validity is expected),
- Photo (5×6 cm),
- Health report from a Thai doctor (may include some tests),
- Diploma/professional qualifications,
- Income tax proofs if necessary.
- Employer (company) documents:
- Employment letter and job description,
- Company incorporation documents, shareholder list, company statements (affidavit),
- Company address diagram/map,
- Tax forms and financial documents (an explanatory letter may be required for new companies),
- Proof of paid-up capital and forms approved with signatures/company seal.
Residence Connection: Non-B Extensions and Reporting
The work permit is one of the main bases for Non-B visa extensions (up to 1 year) for most foreigners. Additionally, there are various long-term options in Thailand (e.g., Elite Visa or marriage-based permits); however, these do not always proceed directly connected to the company.
Note: Annual/periodic notification obligations and immigration reporting are critically important for the continuation of residence. Overstay situations can lead to penalties and deportation.
Costs and Planning: Set Budget Items Realistically
To provide a general framework:
- Company formation (fees + documentation + consultancy/legal): often seen in the range of ~50,000–100,000 THB (varies depending on case complexity).
- Work permit fees and operational expenses: typically seen in the range of ~3,000–10,000 THB in most scenarios.
After 2026, especially for those using shared addresses and structures requiring proof of Thai shareholder financing, the “additional document” requirement can increase consultancy and time costs. Therefore, the most accurate approach is to plan the establishment not as a single transaction but as a chain of company + bank + tax + work permit + residence continuity.
Corpenza Perspective: Integrating Company Formation and Mobility Under a Single Plan
Success in opening projects in Thailand often does not come with the mindset of “we established a company and that’s it.” The foreign partnership structure, capital setup, address compliance, payroll/tax burdens, work permit documentation, and annual compliance steps trigger each other.
Corpenza adds value in the following areas with a focus on international business development and mobility:
- Establishment Strategy: A company model that considers foreign ownership limits and practical risks based on the area of activity.
- Documentation & Compliance: Properly structuring shareholder/capital/address proofs from the outset in line with the 2026 DBD document standards.
- Mobility and Employment Plan: Integrating thresholds such as capital and Thai employee ratios for work permits into the business plan; payroll and process coordination.
This approach reduces delays in the establishment phase and helps you build a sustainable structure on the immigration side.
Conclusion: In 2026, “Compliance” Wins Over “Speed”
Establishing a company in Thailand is still accessible; however, as of 2026, we see a more disciplined application around transparent ownership, real financial proof, and address verification. If foreigners have a residence and work plan, starting with minimum capital is often insufficient; the paid-up capital required for work permit sponsorship and the employment ratio should be modeled from the beginning.
When you proceed with the correct setup, Thailand can turn into a strong operational base for regional growth. Incorrect setups often result not in rejection but rather in wasted time, additional document requests, and unsustainable compliance costs.
Disclaimer
This content is for general informational purposes; it does not constitute legal, tax, or financial advice. Regulations and practices (including DBD, Ministry of Labor, and immigration units) may change over time and can vary on a case-by-case basis. We recommend checking current official sources before applying and obtaining professional support suitable for your situation.
