Company Capital in Thailand: Everything You Need to Know
Starting a company in Thailand is an exciting opportunity, especially for foreign investors aiming to tap into Southeast Asia’s growing economy. One of the most important aspects of setting up a business here is understanding company capital—how much you need, what it means legally and practically, and how it impacts your company registration, visa applications, and business operations.
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What Is Company Capital in Thailand?
Company capital (often called registered capital) is the amount of money a company declares to the Department of Business Development (DBD) when registering a business in Thailand. It reflects the total value of shares the company plans to issue and serves as a formal statement of the company’s financial base.
The capital can be in the form of cash or assets and doesn’t always need to be fully injected into the business immediately, although it must be fully subscribed by shareholders.
Minimum Capital Requirements
There are different capital requirements depending on the type of company and whether the business involves foreign ownership:
1. Thai-Owned Company
No fixed minimum capital required by law.
However, for practical purposes, at least 1 million THB is commonly used for smoother operations and credibility.
2. Foreign-Owned Company (without BOI promotion)
Must comply with the Foreign Business Act.
Requires at least 2 million THB per business activity (for general business).
If the company needs to sponsor a foreign work permit, the minimum capital requirement increases.
3. BOI-Promoted Company
BOI promotion may reduce capital requirements depending on the activity.
Capital must align with the investment plan approved by BOI.
Company Capital & Work Permits
If your business plans to employ foreign staff, registered capital plays a major role.
The standard rule is 2 million THB in registered capital per foreign employee.
This applies to both Thai and foreign companies.
Some exceptions exist under BOI, IEAT, or treaty-based privileges (e.g., US Treaty of Amity).
Paid-Up Capital vs. Registered Capital
These terms are often confused, so here’s a quick breakdown:
Registered Capital: The total value of shares declared during registration.
Paid-Up Capital: The actual amount shareholders have paid into the company.
Thai law allows companies to register capital without immediately paying all of it. However, some government agencies, banks, and partners may require proof of paid-up capital—especially when applying for visas or opening a business bank account.
Common Misconceptions
Myth 1: “The more capital I register, the better.”
Truth: While high capital may increase credibility, it also comes with greater legal responsibility and higher stamp duty.
Myth 2: “I don’t need to actually put in the money.”
Truth: For visa and work permit purposes, proof of paid-up capital (e.g., bank transfers or balance sheet) is often required.
Myth 3: “It’s okay to register low capital and raise it later.”
Truth: That’s technically possible, but starting with realistic capital can avoid delays with immigration, licensing, and banking.
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