Introduction
Thailand remains one of Southeast Asia’s most attractive destinations for foreign businesses in 2026. With its strategic location, developed infrastructure, strong regional connectivity, and pro-investment policies, the country continues to draw entrepreneurs, SMEs, and multinational companies alike.
However, setting up a company in Thailand is not a one-size-fits-all process. The structure you choose has a direct impact on:
- How quickly you can operate
- How much capital you need upfront
- Whether you can generate revenue locally
- Your ability to hire foreign employees
- Your long-term compliance and tax obligations
The three most common legal structures for foreign businesses are:
1. Thai Private Limited Company (Co., Ltd.)
2. BOI-promoted Company
3. Representative Office
This article provides a clear, side-by-side comparison of costs and timelines in 2026, helping you choose the most suitable structure based on your business goals.
Overview of Company Structures in Thailand
Before diving into costs and timelines, it’s important to understand what each structure allows — and restricts — you to do.
1. Thai Private Limited Company (Co., Ltd.)
A Co., Ltd. is Thailand’s most common business structure. It is a fully operational company that can:
- Generate revenue in Thailand
- Invoice local and international clients
- Hire Thai and foreign staff
- Lease office space
- Open Thai corporate bank accounts
Foreign ownership is possible but may be restricted depending on the business activity under the Foreign Business Act (FBA).
2. BOI-Promoted Company
A BOI company is a Thai Co., Ltd. that has been approved and promoted by the Thailand Board of Investment (BOI).
BOI promotion may offer:
- Permission for higher or 100% foreign ownership (activity-dependent)
- Corporate income tax incentives (for qualifying projects)
- Easier visa and work permit processes for foreign employees
- Exemptions or reductions on import duties
BOI promotion is activity-based, not automatic, and comes with compliance obligations.
3. Representative Office
A Representative Office is an extension of a foreign company. It is strictly non-revenue-generating and can only perform limited activities:
- Market research
- Sourcing and supplier coordination
- Quality control
- Liaison with head office
It cannot issue invoices, sign sales contracts, or earn income in Thailand.
Thailand Company Setup Timeline Comparison
Structure
Realistic Timeline to Operate
Co., Ltd.
4–8 weeks
BOI-Promoted Company
3–6+ months
Bangkok Lifestyle & Networks
1–3 months
Actual timelines vary depending on documentation readiness, banking procedures, and immigration requirements.
Cost & Timeline Breakdown
Option 1: Thai Co., Ltd.
Timeline
Total practical timeline: approximately 4–8 weeks
A straightforward Co., Ltd. setup usually follows these steps:
1. Company name reservation: 2–3 working days
2. MOA filing & company registration: 7–10 working days
3. Tax ID registration: 1–3 days after incorporation
4. VAT registration (if applicable): 1–2 weeks
5. Corporate bank account opening: 1–4 weeks (often the slowest step)
6. Work permits & visas (if required): 2–6 weeks
Setup Costs
Government Fees
Government fees are relatively low and calculated based on registered capital:
- MOA filing fee
- Company registration fee
In practice, government fees are rarely the deciding factor.
Registered Capital
There is no universal minimum capital for all Co., Ltd. companies. However:
- 2 million THB is commonly used to support one foreign work permit
- Higher capital may be required for regulated activities
Registered capital does not always need to be fully paid upfront but must be realistically planned.
Professional & Operational Costs
These typically include:
- Legal incorporation services
- Accounting and tax registration
- Payroll setup
- Immigration support
- Office lease or registered address
Typical setup budget: ranges from moderate to medium, depending on complexity.
Option 2: BOI-Promoted Company
Timeline
BOI setup is a two-layer process: BOI approval + company setup.
Typical steps:
1. BOI eligibility assessment & project planning: 2–4 weeks
2. BOI application submission & presentation: 1–2 weeks
3. BOI review and approval: 1–3 months (depending on project size)
4. Company incorporation / restructuring: 2–4 weeks
5. BOI certificate issuance & post-approval compliance: ongoing
Total realistic timeline: 3–6+ months
Setup Costs
BOI Application & Advisory
While BOI application fees are generally low or nil, preparation costs are not:
- Business plan and investment plan
- Staffing projections
- Technology or value-add justification
- Compliance roadmap
Capital & Investment Requirements
BOI-promoted companies often require:
- Minimum investment thresholds
- Fixed asset commitments
- Ongoing reporting to BOI
These requirements vary by industry and promotion category.
Ongoing Compliance
BOI companies must:
- Meet employment and investment milestones
- Submit periodic BOI reports
- Maintain standard accounting and tax compliance
BOI is best for companies that will actively use the incentives, not those seeking speed alone.
Option 3: Representative Office
Timeline
Representative Office setup generally includes:
1. Application and registration: 2–4 weeks
2. Corporate tax registration: 1–2 weeks
3. Bank account opening: 2–4 weeks
4. Capital remittance: staged over time
Total practical timeline: 1–3 months
Setup Costs
Capital Requirement
This is the largest cost component:
- Common planning range: 3–5 million THB
- Capital is transferred in stages, not always upfront
Operational Costs
Even without revenue, Rep Offices require:
- Accounting and audit services
- Office lease
- Immigration compliance for foreign staff
Representative Offices are often misunderstood as “low-cost.” In reality, they are capital-heavy but operationally limited.
Cost Comparison Summary
Category
Co., Ltd.
BOI Company
Rep Office
Can Generate Revenue
Yes
Yes
No
Foreign Ownership Flexibility
Limited
High
N/A
Typical Setup Time
Fast
Slow
Medium
Capital Intensity
Low-Medium
Medium-High
High
Compliance Complexity
Medium
High
Medium
Choosing the Right Structure for Your Business
Choose a Co., Ltd. if:
- You want to start invoicing quickly
- Your activity does not require BOI incentives
- You need flexibility and speed
Choose a BOI Company if:
- Your business qualifies for promotion
- You require foreign ownership flexibility
- You plan to hire foreign specialists
- You are prepared for structured compliance
Choose a Representative Office if:
- You do not need to generate revenue
- Your goal is market research or regional coordination
- You are testing Thailand before full entry
Conclusion
In 2026, Thailand continues to offer multiple entry paths for foreign businesses — but choosing the wrong structure can lead to delays, unexpected costs, and compliance risks.
- A Co., Ltd. is usually the fastest and most practical option for operational businesses.
- A BOI-promoted company is powerful for eligible businesses but requires time and discipline.
- A Representative Office suits non-commercial activities but demands significant capital planning.
The right choice depends not only on cost, but on timeline, revenue plans, ownership needs, and long-term strategy.
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