Imagine the rich cultural heritage of Thailand finding its way right from Bangkok beaches to your home. The Ministry of Commerce’s Department of Foreign Trade (DFT) enforces trade agreements and customs duties regulating export-import business in Thailand. Thus, to set up an export company in Thailand as a foreigner, you’ll need to understand the legal roadmap for undertaking BOI privileges with exemptions from customs duties and taxes.
Moreover, behind every Thai export lies a legal framework shaped by compliance in cross-border trade. This article will give you essential insights regarding Thailand’s export market, export business structure, steps to register an export business, etc. Another bonus point is obtaining specific details about the best product to export from Thailand.
Table of Contents
Brief Overview of Thailand’s Export Market
Thailand, known as the ‘Land of Smiles’, established a strong global footprint through its diverse shipments from temples to foreign trade. In line with the United Nations COMTRADE database, Thailand’s exports by category for 2024 are:
| Categories | Revenue |
| Electronic Equipment | $51.33 billion |
| Nuclear reactors and boilers | $47.84 billion |
| Vehicles other than rails, trams | $33.81 billion |
| Rubbers | $19.24 billion |
| Pearls, precious metals, and coins | $18.42 billion |
However, OEC reported Thailand ranking 25 out of 226 in 2023 with $332 billion in revenue. It showed a major share of exports in the following categories:
| Categories | Revenue |
| Office Machine Parts | $21.4 billion |
| Integrated Circuits | $19.5 billion |
| Delivery Trucks | $14.2 billion |
| Cars | $12.2 billion |
| Broadcasting Equipment | $11.3 billion |
Why is Thailand an Excellent Place for Foreign Exporters?
Did you know that exports from Thailand increased steeply from 24,765.90 USD million to 25277.00 USD million in 2025? As the 25th largest exporter, there’s a significant opportunity for foreigners to set up an export company in Thailand. Additionally, according to the 2024 Global Competitiveness Index, Thailand ranks fifth in economic performance.
Can Foreigners Own an Export Company in Thailand?
To open an export company across Thailand’s temples and beaches, a foreigner needs to comply with certain regulations.
Understanding Foreign Ownership Laws
In line with Section 4 of the Foreign Business Act (FBA) of 1999, “a foreigner cannot own more than 49% of a company engaged in this sector unless they obtain a special exemption, such as the BOI or a Future Business License (FBL).
100% Foreign Ownership
Under the Board of Investment (BOI) privilege, foreigners can start a business in Thailand with 100% foreign ownership. To register an export business in Thailand, foreign investors can easily obtain a foreign business license. Also, they can apply for work permits for their foreign employees through the BOI promotion Finally, foreigners gain additional advantages in corporate income tax exemptions under 100% foreign ownership.
100% foreign ownership vs. joint venture
| Dimensions | 100% Foreign Ownership | Joint Venture |
| Control over the business rights | High | Low |
| Financing resources | Low | High |
| Restrictions under the Foreign Business Act (FBA) | High | Low |
| Need for Thai partners | No | Yes (Majority of shareholding rights with Thai partners) |
BOI (Board of Investment) Incentives For Export Businesses
Under the Thailand Investment Promotion Guide, 2025, the following tax incentives are engaging in export business in Thailand for foreigners:
- Exemption of corporate income tax on the net profit and dividends derived from the promoted activity (Section 31, 31/1, and 34)
- A 50 percent reduction of the corporate income tax (Section 35(1))
- Double deduction from the costs of transportation, electricity, and water supply (Section 35 (2))
- Exemption of import duty on raw or essential materials imported for use in production for export (Section 36)
Steps To Register an Export Company In Thailand
Thailand is one of the top strategic locations for setting up export operations abroad. Moreover, foreigners get an advantage of running the business operations ethically.
Choose the Right Business Structure
Limited Company vs. Representative Office
| Dimensions | Limited Company | Representative Office |
| Nature of Entity | A distinct legal entity from the owners used for commercial purposes | Not an extension of the parent company in Thailand |
| Tax implications | Subject to corporate income tax and other taxes | Not subject to local taxes |
| Permits | Need work permits | Not always, but it requires a Foreign Business License |
Which Structure Allows 100% Foreign Ownership?
The best company structure is a limited company to avoid restrictions on export business in Thailand for foreigners. One of the top benefits of 100% foreign ownership is the high protection for investors. It also allows the exporters to have a registered corporate address in Thailand.
Registering Your Company Name
Restrictions on company names
Under Section 1098 of the Thai Civil and Commercial Code, a company must have the word ‘Limited’ attached to the end of its name. Nevertheless, the company name must not violate Thai moral standards to establish an export company in Thailand.
Any such names that have a similar association with the Thai Royal Family, ministries, government, or other national companies are prohibited.
Name reservation process with the Department of Business Development (DBD)
Step 1: Ensure compliance with the company name availability by consulting with the Department of Business Development naming regulations
Step 2: Documentation needed, like a valid passport and description of the business activities for the verification step
Step 3: Preliminary name check with the other alternative names
Step 4: Applying for company name reservation with DBD officials
Step 5: Approval with a notification from the DBD officials, with the confirmation of the final company name.
Business Registration Process
To set up an export company in Thailand, the essential steps for business registration are as follows:
Steps to register a company with DBD
| Step 1 | Company name reservation with an online application on the DBD website. The approval will require a minimum of 3 days. |
| Step 2 | Preparation of documents like MOA, AOA, details of shareholders, directors, and the company affidavit. |
| Step 3 | Conducting a statutory meeting with shareholders and directors to determine the shareholding structure |
| Step 4 | Completion of company registration and issuance of registration certificate |
| Step 5 | Obtaining a Tax Identification Number (TIN), VAT registration, a foreign business license, and a company bank account. |
Capital Requirements For a Foreign-Owned Company
To start an export business in Thailand, foreigners will require a minimum capital of 2 million THB. Conversely, the foreign-owned company in Thailand in need of a foreign business license may have a minimum capital requirement of 3 million THB. Therefore, this minimum capital shall be brought within 3 years of business commencement.
Documents Needed For Registration
- Export business license
- Company affidavit
- VAT registration certificate
- Board of Investment (BOI) license
- Company business plan
- Bank statement of shareholders
- Passport copies of directors and shareholders
- Memorandum of Association (MOA)
- Articles of Association (AOA)
Getting the Necessary Licenses & Permits
Thailand Export License Requirements
- Copy of Value-added tax certificate (Phor Phor 20)
- Copy of seal registration (BAJ 3)
- Copy of K1 application form under the Power of Attorney
- Copy of passport
- Bank Statements
- Export permit
- Health or safety certification
VAT Registration For Exporters
| Step 1 | Gather the documents required for the VAT registration to operate an export company in Thailand:
|
| Step 2 | Submitting a VAT application form to the Revenue Department by mail/online |
| Step 3 | The VAT registration certificate shall be issued, containing the registration number |
| Step 4 | Verification of the criteria of business requirements with the VAT registration number |
| Step 5 | Completing the VAT application form |
| Step 6 | Review and processing by the Revenue Department takes a few weeks |
| Step 7 | Maintaining records of sales, purchases, and expenses for the next 5 years |
Customs Registration For Smooth Operations
Did you know that members of the European Free Trade Association (EFTA) and the Kingdom of Thailand entered into the EFTA-Thailand agreement? Such an agreement aims to foster economic cooperation and eliminate technical barriers in bilateral trade.
To obtain the export license, first, you need to obtain a digital certificate by registering with the e-Customs Department. Secondly, you need to check which goods are prohibited by Thai authorities. Currently, 50 goods require a permit to export from Thailand. Moreover, you need to submit the export license. Fourthly, the following documents are needed:
- Power of Attorney for Customs Formalities Form (Form ก)
- Customs Broker Appointment Form (Form ค)
- Power of Attorney for Tax Compensation Form (Form ข)
- Power of Attorney for Customs Formalities Form (Form ก)
- Bank Account for Tax Payment/Refund Form (Form จ)
- Officer Form (Form ง)
Safety and Quality Certifications For Export Business
The International Trade Association (ITA) makes it mandatory to perform inspections and certification of Thai exports and imports for consumer protection. To ensure credibility, you will require certain quality certifications to set up an export firm in Thailand:
| CERTIFICATES | PURPOSE |
| HACCP (Hazard Analysis and Critical Control Points) | A crucial measure to assess the risks and food safety associated with the supply of food ingredients. |
| ISO 9001 | A commitment to ensuring the Quality Management System (QMS) of goods across Thailand. |
| TISI (Thailand Industrial Standards Institute) | Manufacturers and importers require certification to ensure the safety of electrical goods and construction materials. |
| CE (Conformity of European) | To ensure compliance with European regulations regarding the safety of goods destined for the European Union. |
| Thailand Trust Mark (TTM) | A quality mark indicating social and environmental responsibility towards excellence of Thai-made products. |
Opening a Business Bank Account
Process For Opening a Business Bank Account
Step 1: You need to choose a suitable bank to perform multi-currency transactions with various branches across Thailand. As a foreigner, you can select among the top banks offering wide international coverage and expat-friendly banking solutions:
- Bangkok Bank
- Kasikorn Bank
- Siam Commercial Bank
- Krung Thai Bank
- TMB Thanachart Bank
Step 2: Gathering the requirement documents
- Passport details
- Work Permit
- Non-immigrant Visa
- Proof of address (utility bill, residency certificate, rental agreement)
- Initial Deposit
- Copy of company registration
- Reference letter from your home embassy
Step 3: Visit a nearby bank branch and submit the documents
Step 4: Activation of the bank account within a few hours.
Step 5: You can now get access to the debit card, account number, and link it with online payment platforms.
Hiring Staff & Work Permits
Work Permit Requirements For Foreign Business Owners
Did you know that you will need a work permit to hire a foreign worker? The following documents should be submitted to the Immigration Bureau and the Department of Employment in Thailand:
- Work permit application
- Letter of employment from the company
- Company Affidavit
- A copy of the list of shareholders
- Audit report for the last 3 years
- Withholding tax form
- Copy of the foreign employee’s passport
- Non-immigrant B visa
- Health certificate and education certificates
- Map of the company location
- Six colored photographs of the foreign employee
Hiring Local vs. Foreign Employees
To operate an export company in Thailand, a foreign employee must submit the work permit application within 7 days. However, under ‘The Alien Employment Act B.E. 2521 (1978)’, a foreign limited company is required to have at least 4 Thai local staff for every 1 foreign employee.
Taxation & Legal Compliance For Export Businesses
A successful idea requires a lot of trials! Despite business benefits, foreigners may face struggles in exporting from Thailand if regulations are not followed.
Corporate Tax Rates In Thailand
A foreign company is subject to a 20% Corporate Income Tax (CIT). It is based on the profits arising from business activities carried out in Thailand. Nevertheless, the tax rate varies:
| Profit ranging from 30,000 THB to 3 million THB | 15% |
| Profit exceeding 3 million THB | 20% |
| Foreign companies engaging in international transportation | 10% |
| Foreign companies disposing of profits out of Thailand | 15% |
VAT & Customs Duties
Thailand implemented a 7% Value-Added Tax (VAT) on any kind of imported goods till 30th September 2025. However, exports are zero-rated except for certain goods like education, healthcare, lease of immovable property, and sale of real estate requiring export permits. Furthermore, according to the Harmonious System (HS) code of goods, customs duties in Thailand vary from 0% to 80%.
Reporting & Compliance With Thai Laws
Currently, Thailand has no export control law. However, Thai authorities are working to pass the ‘Trade Controls on Weapons of Mass Destruction Act’ based on the primary legislation. To register an export/import company in Thailand, under section 7 of the Export and Import of Goods Act, B.E. 2522 (1979), a foreign exporter cannot export goods unless a license is obtained from the Minister of Commerce. Moreover, powers of the customs officials prohibit the export of goods related to smuggling, seizure and forfeiture, and false declarations under section 16 of this Act.
Best Products To Export From Thailand
To register an import/export company in Thailand, it is important to consider the regulations associated with the products.
High-Demand Export Products
DHL in February 2024 reported that these are the top export products from Thailand:
- Canned Pineapple with
- Canned Tuna
- Canned Seafood
- Dried Shrimp
- Dried Spices (lemongrass, galangal, kaffir lime leaves)
- Rice Noodles
- Instant curry paste
- Coconut Milk Powder
- Thai tea mix
- Processed fruit snacks (dried mangoes, jackfruit chips, banana slices)
Nevertheless, the Thai Customs Department prohibits the export of narcotics, fake currency, counterfeit goods, along reserved wildlife.
Tips For Choosing The Right Niche
Thailand has been a global leading exporter of canned products and agricultural products like rubber and rice. The 3 ways to choose the right niche for exports are:
- Sell the unique product
- Target the less common importers with low trade tariffs
- A high product differentiation with quality-certified standards
Challenges & Tips for Running a Successful Export Business
A successful idea requires a lot of trials! Despite business benefits, foreigners may face struggles in exporting from Thailand if regulations are not followed.
Common obstacles for foreigners in Thailand
- Company ownership for foreigners is limited to 49% of shareholding rights
- Without a work permit, business activities are not allowed to operate
- Restrictions on hiring foreign workers
- Under the Foreign Business Act of 1999, Thai law prohibits foreigners from exporting certain goods:
- Livestock
- Rice farming
- Fishery
- Radio and Television broadcasting
- Newspapers
- Trading in Thai antique properties
- Manufacturing of Buddhist images and bowls
Strategies for smooth business operations
- Ensuring Thai shareholders are entitled to the majority of shares in the business
- Obtaining a Foreign Business License under List 1, List 2, and List 3 of business activities
- Applying for the BOI promotion to reduce the corporate income tax rate
- Acquiring ISO 9000 or ISO 14000 certification if the project has an investment capital of THB 10 million
- Recruiting the majority of Thai staff members at a ratio of 4:1 within the team
- Securing a valid work permit from the Labor Department
Conclusion
Finally, the landscape for export business in Thailand for foreigners is protected under export license requirements. Moreover, a free trade agreement like EFTA-Thailand strengthens Thailand’s bilateral relations by reducing non-tariff barriers. From Thai company registration to conducting high-demand exports, you need to register as a limited company.
At Konrad Legal, we specialize in setting up export companies in compliance with Thai import-export regulations. From business registration to applying for work permits, our team assists you in launching your business with confidence. Also, you get 3x better end-to-end documentation support in Thailand.
