Foreigners planning to have a business in Thailand operating either as a Branch Office or Representative Office of a company incorporated under the laws of a foreign country, or as a Thai limited company incorporated under Thai laws with majority shares owned by foreigners, need to have the minimum capital required by Thailand Foreign Business Law. This article only talks about non-American companies. For American companies, please read Minimum Capital Requirement for Treaty of Amity Companies in Thailand.
How much capital for foreign companies?
If the foreign companies operate businesses that are not in the schedules annexed to the Foreign Business Act B.E. 2542 (thus it is not required to obtain a Foreign Business License), the minimum capital is Baht 2 M.
If the foreign companies operate businesses that are in the schedules annexed to the Foreign Business Act B.E. 2542 (thus it is required to obtain a Foreign Business License before it can operate the businesses), the minimum capital must be no less than 25% of one-year average of the three-year expenditure forecast (that was submitted when applying for the foreign business license) and no less than Baht 3 M per business.
Time frame
- For foreign companies that are not incorporated in Thailand (thus operate as a Branch Office of a Representative Office) must bring in the minimum capital from the day they have been approved of the Foreign Business License within the following time frame:
(1) If the approval to operate the business is for less than 3 years, the minimum capital must all be brought into Thailand within 6 months.
(2) If the approval to operate the business is for 3 years or more, the minimum capital must be brought into Thailand as follows:
– Within the first 3 months, at least 25% of the minimum capital
– Within the first year, a total of 50% of the minimum capital
– In the 2nd and 3rd year, at least 25% of the minimum capital within each year
100% of the minimum capital must be brought in within the three-year period.
The way to comply with this regulation is to bring in the capital by sending the money in a foreign currency within the above time frame and inform the Director of Good Governance Office of the Department of Business Development within 15 days from remittance.
- For foreign companies that are Thai limited companies incorporated in Thailand, they must have their registered capital equal to the minimum capital required by the foreign business law before they will be approved of the Foreign Business License.
Contact ThaiLawyers for Foreign Business Law.