Starting a new business
Compare Business Entities
There are various types of business in Thailand which can be owned by an individual or jointly invested with other people as a group. As a guide, we’ve compared common business entities & listed their key pros and cons below.
Naga Business Consulting can help you decide on the right legal entity to grow your business and protect your legal liability!
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Business Entity
Sole Proprietorship
Commonly used for
A business owned by an individual who has exclusive control and manages the business
Advantages
Easily established with a small investment
Disadvantages
If the business is operating at a loss, the business owner is solely responsible for all liabilities
Status under thai law
Natural Person
Business Entity
Partnership
Commonly used for
A business formed by at least two individuals who have agreed to make a joint investment and share ownership
Advantages
More stable and reliable than a sole proprietorship
Disadvantages
Each partner has unlimited liability for all the obligations of the partnership
Status under thai law
Juristic Person
Business Entity
Limited Company
Commonly used for
A business formed by at least three individuals with capital divided into equal shares
Advantages
The liability of the shareholder is limited to the amount unpaid on the shares held by each shareholder
Disadvantages
LCs have specific rules and requirements imposed under Thai Law
Status under thai law
Juristic Person
Business Entity
Application for Foreign Business Certificate
under the Treaty of Amity between Thailand and the USA
Commonly used for
A business formed with a US Citizen as the majority shareholder
Advantages
Treaty of Amity companies do not require FBL approval, & their set up times are normal
Disadvantages
LCs have specific rules and requirements imposed under Thai Law
Status under thai law
Juristic Person
Business Entity
Foreign Business License (FBL)
Commonly used for
A business formed by having the majority of shares owned by foreigners
Advantages
Majority shareholders are Non-Thai nationals
Disadvantages
FBL approval takes time, and only specific types of businesses are eligible
Status under thai law
Juristic Person
Business Entity
Application for Investment Promotion Certificate
Commonly used for
A business which has been granted investment promotion status from the government of Thailand
Advantages
The business will be granted numerous privileges and incentives
Disadvantages
The business must have an investment promotion objective and be in a location prescribed by the Thailand Board of Investment
Status under thai law
Juristic Person