There is no universal answer to the simple question of how much it costs to register a company in Thailand. Initial expenses and ongoing maintenance costs depend on the purpose of the company, its business activities, number of employees, and other factors.
Let’s look at the main options for company registration depending on objectives:
- For doing business without employing foreigners
- For doing business with foreign employees (requiring work permits)
As the number of permits and transactions increases, the cost of maintaining the company also rises.
Company for Business (without Work Permit)
1. Company registration
Minimum registered capital: 1 million baht (unless a higher amount is required by licensing or other regulations).
2. Social security registration and employment
If the company is operational, at least one Thai employee must be officially employed.
3. Annual financial statement
Reflects income and expenses and determines corporate income tax. Costs are slightly higher than for a property-holding company.
4. Monthly social security contributions
10% of the employee’s salary (maximum 1,500 baht), split equally between employer and employee.
5. Monthly payroll tax payments
Withheld from salaries and paid by the employer.
Important:
If annual turnover exceeds 1.8 million baht, the company must register for VAT and submit monthly reports, leading to additional costs:
- VAT registration
- Accounting services for monthly reporting
Company for Business (with Foreign Employees)
1. Company registration
Registered capital: 2 million baht per foreign employee.
2. Social security registration and staffing
Four Thai employees are required per one foreign employee.
3. Work permit and visa
Required for each foreign employee.
4. Annual financial statement
Cost depends on company turnover.
5. Monthly reporting and contributions
- Accounting reports (if VAT applies)
- Social security contributions for all employees
- Payroll tax payments
Cost Comparison Table
| Expense Type | Business Company (No Work Permit) | Business Company (With Work Permit) |
|---|---|---|
| Initial Costs | ||
| Company registration | Usually 1 million baht | 2 million baht per foreign employee |
| Social security registration | Required when hiring staff | Mandatory |
| VAT registration | If turnover > 1.8 million baht | If turnover > 1.8 million baht |
| Work permit | — | Required for each foreign employee |
| Non-immigrant visa | — | Required for each foreign employee |
| Annual Costs | ||
| Financial statement | Depends on turnover | Depends on turnover |
| Work permit renewal | — | Required |
| Visa extension | — | Required |
| Monthly Costs | ||
| Accounting reports | If VAT applies | If VAT applies |
| Social security contributions | After hiring staff | Mandatory |
| Payroll tax | After hiring staff | Mandatory |
This article has covered only the costs related to company registration, maintenance, and mandatory payments. The cost of legal and accounting services depends on the service provider you choose. The amount of taxes depends on the company’s income and expenses during the reporting period—and largely on the quality of your accountant’s work.
Author: Alexandra Agapitova.
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