The most suitable legal structure depends on the nature of the business, ownership requirements, and long-term investment objectives. Common structures include a Thai Limited Company, BOI-promoted company, Representative Office, or Branch Office. Each structure carries different legal, tax, and ownership implications.

Under Thai law, most businesses require at least 51% Thai shareholding unless exemptions apply. Shareholding structures must reflect genuine ownership, capital contribution, and voting rights to ensure compliance with the Foreign Business Act and avoid nominee arrangements.

Foreign-owned companies may be restricted from engaging in certain business activities under the Foreign Business Act. Specific licenses, exemptions, or BOI promotion may be required depending on the industry and level of foreign ownership.

Companies operating in Thailand may be subject to corporate income tax, value-added tax (VAT), withholding tax, and specific business tax. Proper registration, timely filings, and accurate accounting records are essential to avoid

penalties and tax assessments.

Companies must maintain accounting records in accordance with Thai Financial Reporting Standards (TFRS). Monthly tax filings, annual financial statements, and statutory audits by a licensed auditor are mandatory.

Non-compliance may result in penalties, surcharges, interest, tax reassessments, and potential legal exposure for directors. In serious cases, it may affect visa extensions, work permits, and future business operations.

Effective tax planning involves selecting the appropriate legal structure, utilizing available tax incentives, and

ensuring transactions are properly documented. All tax planning must comply strictly with Thai tax laws and

international transfer pricing regulations.

Employers must withhold personal income tax, contribute to social security, and submit monthly payroll filings.

Annual employee income reports must also be submitted to the Revenue Department.

Even without revenue, companies must continue statutory filings, tax submissions, and annual financial reporting.

Failure to maintain compliance may result in fines, penalties, or company deregistration.

Thai tax and regulatory frameworks are complex and frequently updated. Professional accounting support ensures

full compliance, minimizes legal risk, improves financial transparency, and allows investors to focus on

business growth with confidence.