100% Foreign-Owned Export Company in Thailand: The 2026 Guide

A Bangkok-based entrepreneur agreed a deal with a factory in Rayong to ship latex gloves to Poland. The first Thai consultant he spoke to told him what almost everyone hears: no company registration without a Thai partner holding 51%. That consultant was wrong.

If a company sells exclusively outside Thailand and ships nothing to the domestic market, it can be 100% foreign owned. This is a direct carve-out under the Foreign Business Act (FBA, 1999): export activity simply does not appear on the restricted lists.

No Foreign Business License, no Thai shareholder, no special permits are required for this structure. What is required is discipline. A single domestic sale reclassifies the company as an FBA violator, carrying fines of 100,000 to 1,000,000 THB and up to three years' imprisonment for responsible officers.

Quick Answer

• 100% foreign ownership is available to an export company without a Foreign Business License, provided domestic Thai sales are zero.

• Minimum 2 shareholders (in effect since 7 February 2023, down from three previously). There is no 3 million THB minimum capital requirement that applies to licensed activities.

• Exports are zero-rated at 0% VAT, and the 7% input VAT paid on purchases from Thai manufacturers is refundable once the company registers as a VAT payer.

• A work visa and work permit are not part of the package: each foreign employee with a permit requires 2 million THB in registered capital and, typically, 4 Thai staff.

• Thailand's exports reached USD 339.6 billion in 2025, up 12.9% year on year, according to customs data.

• Annual audited financial statements are mandatory even with zero turnover.

Key Facts

• The FBA exemption follows the final destination principle: raw materials and semi-finished goods can be sourced or imported in Thailand, but finished products must leave the country.

• Corporate tax stands at 20%. Companies with paid-up capital under 5 million THB and annual revenue under 30 million THB benefit from a tiered rate: 0% on the first 300,000 THB of profit, 15% on 300,000 to 3,000,000 THB, and 20% above that.

• VAT registration is mandatory once turnover exceeds 1.8 million THB a year, but exporters should register from day one, otherwise input VAT becomes a sunk cost rather than a refund.

• Imported raw materials that are processed and re-exported within one year qualify for import duty drawback under Section 29 of the Customs Act (formerly Section 19 bis).

• Certificates of origin (Form D for ASEAN, Form E for China, RCEP form) are issued by the Department of Foreign Trade; without them, preferential tariffs simply do not apply for the buyer.

• Registration in the e-Customs system requires a digital certificate and typically takes one to two weeks for most companies.

A persistent myth about free trade agreements

Marketing materials often claim Thailand has an FTA with the European Union. It does not. Negotiations resumed in 2023 and remain unratified. In January 2025, Thailand signed an agreement with EFTA (Switzerland, Norway, Iceland, Liechtenstein), but signing and ratified entry into force are two different milestones.

What actually works today: the ASEAN Free Trade Area, agreements with China, Japan, Korea, India, Australia and New Zealand, Chile and Peru, plus RCEP, in force since 1 January 2022. For goods with Thai value-added content, this means zero or reduced tariffs entering 14 RCEP member states. If your main market is Germany or France, Thailand offers no tariff preference there, and the jurisdiction should be chosen for other reasons: factory access, logistics, and production cost.

Where the structure typically breaks

The most common failure isn't legal, it's cash flow. The Revenue Department scrutinizes a company's first-ever VAT refund claim closely: invoices, bills of lading, export declarations, and proof of payment from the overseas buyer are all requested. Practicing accountants report the first refunds typically arrive after three to six months, even with a flawless document package. Budget this into working capital, not into next quarter's profit forecast.

The second trap is the temptation to 'sell a little' locally. A batch that didn't fit in the container, a test shipment to a local distributor, samples sold to a Thai shop: any such transaction wipes out the basis for the FBA exemption entirely.

The third is nominee Thai shareholders. Holding 51% through Thai individuals who never contributed capital and take no part in management is a criminal offense for both the nominee and the foreign investor. DBD inspections targeting this exact structure have intensified noticeably in recent years, particularly in Phuket and Samui.

One rarely spoken piece of advice: if your annual export volume from Thailand is under roughly USD 300,000, setting up a Thai company may not be worth it. Mandatory audits, monthly filings, accounting support, and banking requirements eat up 60,000 to 200,000 THB a year before the first shipment even leaves. It is often cheaper to buy on FOB terms through a Thai trading house and keep the contracting entity in Singapore or Hong Kong. A Thai company pays for itself where there is a steady container flow, VAT refunds, and local raw material processing.

For context on how foreign participation in Thai property and business is evolving, Phuket's residential market offers a useful parallel: recent project launches aimed specifically at foreign buyers, including a rollout involving roughly 200 agents across three projects, show how structured, compliance-first access points are becoming standard practice for international investors entering Thailand, whether in real estate or export manufacturing.

How to Start: Step by Step

1. Check your HS code classification. Certain categories require an export license from the Department of Foreign Trade: rice, sugar, some timber products, dual-use goods. Do this before registering the company, not after.

2. Reserve the company name via the DBD online system. Reservations last 30 days, are free, and are usually confirmed within one to three business days.

3. Keep the objectives in the Memorandum of Association (MOA) narrowly worded. Any mention of domestic wholesale or retail trade in the stated objectives is a red flag for banks and regulators, even if you never act on it.

4. Register the company: minimum two shareholders, MOA, shareholder list, and a registered office address with owner confirmation. DBD registration takes from three business days with a complete document set.

5. Obtain a tax ID and register for VAT with the Revenue Department within 60 days of starting operations.

6. Open a corporate bank account. The law does not require a Thai director, but banks in practice require the signatory's personal presence and often ask for a local contact representative. Plan a trip to coincide with the bank meeting and a factory visit, booking flights and accommodation early, since banks are difficult to reschedule once a date is set.

7. Register in the e-Customs system as an exporter: digital certificate, Customs Department registration, and a customs broker agreement if needed.

8. Secure access to certificates of origin through the Department of Foreign Trade if your buyer relies on preferential tariff rates.

9. Decide on your physical presence. Either manage remotely with a local accountant, or pursue a work permit: 2 million THB in capital per foreign employee plus staffing ratios. For manufacturing projects, BOI promotion is an alternative that removes some of these requirements but demands an investment plan.

10. Put bookkeeping on a monthly cycle from month one: PND.53, PP.30, employee contributions, and annual audit. Reconstructing records retroactively ahead of a VAT refund claim costs far more than maintaining them from the start.

FAQ

Can an export company sell anything at all inside Thailand?

No. The FBA exemption only applies if 100% of output leaves the country. Domestic sales require a separate structure with a license or Thai majority control, and the two cannot be combined in one legal entity.

What registered capital is required?

There is no statutory minimum for an export company with no foreign staff. The 2 million THB threshold applies per foreign employee holding a work permit. The 3 million THB requirement applies to licensed activities and does not apply to exporters.

Does 100% ownership come with a visa or work permit?

No. These are separate processes entirely. You can own the company while living anywhere in the world, but you cannot work in it, including signing contracts on Thai soil, without a work permit.

How fast is the VAT refund?

Market average is three to six months for the first claim, faster afterward if the Revenue Department has no questions about documentation. A complete package speeds things up: export declaration, bill of lading, invoice, proof of incoming foreign currency payment.

Is a Thai director required?

Not by law. In practice, banks treat companies with a single non-resident foreign director cautiously and may delay account opening or request additional documents.

Is an audit mandatory even with zero turnover?

Yes. Annual financial statements for any Thai company must be audited and filed with the DBD and Revenue Department regardless of activity levels.

Can I put 51% in a Thai nominee's name and trade domestically?

This is an FBA violation carrying criminal liability for both parties. Enforcement against nominee structures has intensified, and there is no protection available to the foreign investor in this configuration.

Which is better: a Thai company or a Singapore company?

Thai works best when you are buying from local factories, reclaiming VAT, processing imported raw materials, and using certificates of origin. Singapore or Hong Kong works better when you are simply reselling Thai-made goods and prioritize banking infrastructure and simpler reporting.

Source: Undersun Estate

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