If you’re considering relocating to Thailand or investing in Phuket real estate, starting a business may be a smart move to complement your lifestyle and residency goals. Many foreign buyers purchasing villas or condos in Phuket also look at local business opportunities — whether in hospitality, tourism, wellness, or e-commerce — as part of their long-term plans.

Understanding Foreign Business Ownership in Thailand

Thailand has laws that limit the participation of foreigners in certain industries. The Foreign Business Act (FBA) restricts foreign ownership in many sectors. In most cases, foreigners are only allowed to own up to 49% of a Thai company, with the remaining 51% owned by Thai nationals.

To maintain control of a company, foreign investors typically use two strategies:

  1. Forming a Thai Limited Company – where trusted Thai shareholders hold 51% of shares.
  2. Obtaining a Foreign Business License (FBL) – which grants permission to operate with majority or full foreign ownership, though it’s difficult to obtain.

The BOI (Board of Investment)

An alternative to the FBL is registering your company with the Board of Investment. The BOI promotes certain business activities and allows foreigners 100% ownership in specific industries, such as technology, manufacturing, and education.

If you plan to invest in Phuket property alongside launching a business, a BOI promotion may allow you to structure your real estate and business investment legally and efficiently.

Minimum Capital Requirements

To register a company in Thailand, foreigners must meet specific capital requirements:

  • Minimum registered capital of 2 million THB if work permits are required.
  • 3 million THB per foreign worker for companies employing expatriates.

This is important to consider if you’re combining business operations with a property investment in Phuket, as proper structuring is essential.

Taxation in Thailand

Business tax rates vary depending on your revenue and company structure:

  • Corporate tax for Thai companies ranges from 15% to 20%.
  • VAT is 7% on most goods and services.
  • Withholding tax may apply on dividends or fees paid to foreign entities.

It’s essential to consult an accountant or legal advisor to ensure proper compliance, especially if your property or rental income is managed through your business.

Taxes and Accounting for Foreign Thai Businesses

Types of Business Visas and Work Permits

If you’re planning to both live and work in Thailand, you’ll need:

  • A Non-Immigrant “B” Visa to start the process.
  • A Work Permit after your company is formed.

Those looking to live in Phuket long-term often explore combining a business setup with a property purchase and residency strategy.

Can You Use a Business Structure to Buy Property in Thailand?

While foreigners cannot own land directly, a Thai company can. However, the Thai government has increased scrutiny on nominee structures.

You should never use a company solely to acquire property if it has no business activity. This could be flagged as illegal. But if you’re legitimately operating a business in Phuket, and the property is part of your business or commercial strategy (e.g., office, guesthouse, or shop house), then it can be structured legally.

If you’re buying real estate in Phuket and also starting a business, it’s critical to seek legal guidance to ensure compliance with Thai laws.

Legal Advice Is Essential

Before investing in a Phuket villa, condo, or business, consult with:

  • A licensed property lawyer
  • A certified accountant familiar with Thai corporate tax
  • A local business consultant or BOI representative

Phuket remains one of the most attractive locations in Southeast Asia for combining lifestyle with investment, especially for entrepreneurs seeking a warm climate, growing tourism market, and stable property sector.

Conclusion

Starting a business in Thailand can open many doors, including smoother visa pathways and strategic property investment structures. With careful planning and legal compliance, you can enjoy the benefits of living, working, and owning real estate in Phuket.

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