Minimum Capital for Company Registration in Thailand (2026)

Updated: 18 July 2026

How much capital is required to register a company in Thailand?

For an ordinary Thai private limited company, there is no single commercially meaningful capital figure that is correct for every business. Thai company law sets rules for the value of shares and the initial payment on those shares, but the appropriate registered capital depends on what the company will actually do after incorporation.

A company that will begin with a small consulting operation may not need the same capital as a company that will employ foreign staff, import products, apply for a regulated licence or operate under the Foreign Business Act. The useful question is therefore not only, “What is the lowest amount that can be registered?” It is also, “What amount will allow the company to carry out its intended plans without an avoidable capital increase or structural amendment shortly afterwards?”

Registered Capital and Paid-Up Capital Are Not the Same

These terms are related, but they describe different things.

Under the Civil and Commercial Code, the par value of each share cannot be less than THB 5. Before registration, the directors must cause at least 25% of the value of each share payable in money to be paid. A company may choose to call and pay a higher proportion, including full payment, where that is appropriate for its plans.

The capital figure should not be treated as a decorative number. Share subscriptions and payments should be recorded properly, and the company’s corporate and accounting records should remain consistent with what has actually occurred.

Why the Lowest Possible Figure Is Rarely the Best Starting Point

A very small capital figure can appear attractive because it reduces the amount initially committed. It may nevertheless be unsuitable if the company will immediately need funds for premises, equipment, salaries, professional costs, inventory or marketing.

The amount selected should be considered against the first stage of the business plan. Relevant questions include:

• What will the company need to spend before it begins earning revenue?
• Will it employ Thai or foreign personnel?
• Will it require a physical office, shop, restaurant, warehouse or licensed premises?
• Will it import goods, hold inventory or enter into material supplier contracts?
• Will a regulator require a particular level of capital, equity or financial standing?
• Will the initial funds be contributed as share capital, shareholder loans or a combination of both?

Registering more capital than the business needs is not automatically better. Registering too little can also create unnecessary work if the company must increase its capital soon after incorporation. The objective is a figure that can be explained by the business plan and coordinated with the company’s ownership, funding and regulatory position.

Is THB 2 Million Required to Register a Thai Company?

No. THB 2 million is not a universal incorporation requirement for every Thai private limited company.

The figure is commonly encountered when a non-BOI company plans to support a work permit for a foreign employee. It is often used as a planning benchmark for each foreign employee, but it should not be read as an automatic entitlement or as the only requirement.

Depending on the route and the facts of the application, the authorities may also consider the company’s paid-up position, source and evidence of funds, business operations, office, Thai staffing and Social Security records, together with the foreign applicant’s role, qualifications and immigration status. Different rules or concessions may apply to BOI-promoted companies, treaty-based structures and certain family circumstances.

If a foreign shareholder or director expects to work for the company, capital and work authorisation should be planned together before incorporation. Further information is available on our Thailand work permit service page.

Do Not Confuse Company Capital with Foreign Business Act Minimum Capital

Registered capital under the company’s corporate documents and “minimum capital” under the Foreign Business Act are related concepts, but they are not interchangeable.

If a company is treated as a foreigner under the Foreign Business Act and intends to conduct a restricted activity, it may require a Foreign Business Licence or another lawful route. A separate minimum-capital rule may then apply. For many activities conducted under a Foreign Business Licence, the applicable minimum begins at THB 3 million, although the required amount can depend on the activity, projected expenditure and the legal route used.

This is one reason the business activity should be settled before the capital figure. A description such as “consulting,” “trading” or “online services” may be too broad to determine the foreign ownership and licensing position. The actual products, services, customers and flow of revenue must be understood first.

For a focused explanation of this separate issue, see our guide to the Foreign Business Licence and foreign-owned companies in Thailand.

Does VAT Registration Require a Particular Amount of Capital?

There is no single registered-capital figure that, by itself, determines whether every company can or must register for VAT.

VAT obligations generally depend on the company’s activities and revenue. A business that is subject to VAT and has annual turnover exceeding THB 1.8 million is generally required to register, subject to the applicable rules and exemptions. A business may also need or wish to register earlier, particularly where its operations and supporting evidence are already in place.

In practice, the Revenue Department may review the company’s premises, business activity and supporting documents. Capital may form part of the overall picture, but increasing the registered capital does not replace the need for a suitable address, coherent business evidence and complete registration documents.

Does Higher Capital Make It Easier to Open a Bank Account?

A sensible capital figure can help the company present a coherent business profile, but no amount guarantees that a bank will open an account.

Thai banks apply their own customer due diligence and compliance procedures. They may review the company’s business, shareholders, directors, expected transactions, source of funds, office and supporting contracts. An authorised director or signatory will normally need to attend in person, and requirements can differ between banks and branches.

For this reason, capital should reflect the intended business and funding plan rather than being increased only to create an impression. A clear and consistent explanation of the company is usually more useful than a large figure that does not match the surrounding documents.

What If One Investor Provides Most of the Initial Funding?

The fact that one investor provides most of the initial money does not, by itself, determine the correct registered capital or the parties’ legal rights.

The funding may be contributed through subscribed shares, a properly documented shareholder loan or another appropriate arrangement. The suitable method depends on the ownership structure, commercial understanding between the parties, accounting treatment and future plans for repayment or return on investment.

Funding, shareholding, director authority and decision-making rights should therefore be reviewed together. This is particularly important where the shareholders contribute different amounts, perform different roles or expect different rights in the business. Clear corporate records and, where appropriate, a shareholders’ agreement can reduce uncertainty later without making the initial registration unnecessarily complicated.

A Practical Way to Select the Capital Figure

Instead of beginning with a standard number, work through the following sequence:

1. Define the activity. Identify precisely what the company will sell or provide, and to whom.
2. Confirm the ownership route. Consider the nationality and actual role of each shareholder and whether foreign ownership restrictions apply.
3. Estimate the initial funding. Calculate the expected costs until the business can support itself.
4. Review the next applications. Check work permit, VAT, licence, import and premises requirements before incorporation.
5. Decide how funds will enter the company. Separate share-capital contributions from loans or other funding and document them correctly.
6. Allow for a realistic first phase. Select a figure that supports the plan without registering capital merely for appearance.

This sequence helps prevent a common problem: completing the company registration first and discovering soon afterwards that the capital, objectives, ownership or office does not support the next step.

Common Misunderstandings About Thai Company Capital

“Every foreign-owned SME needs THB 2 million.”

Not necessarily. The appropriate amount depends on the ownership route, business activity and future applications. THB 2 million is commonly relevant to standard work permit planning, not every incorporation.

“Registered capital must remain untouched in the bank.”

Capital contributed to the company is company money. It may generally be used for legitimate company expenses, subject to proper authority, records, accounting and any requirements relevant to a pending application. It should not be treated as the personal money of a shareholder or director.

“A large registered capital guarantees approval.”

No. Government agencies and banks consider the complete application and the underlying facts. Capital cannot correct an unsuitable business activity, address, ownership arrangement or incomplete supporting evidence.

“The capital can always be fixed later without consequence.”

A capital increase is possible, but it requires corporate approvals, updated documents, shareholder subscriptions and registration. Planning the first phase before incorporation can avoid additional time and professional cost.

Frequently Asked Questions

What is the legal minimum capital for a Thai private limited company?

Thai company law does not give every private limited company one standard operating-capital figure. It does provide that the par value of a share may not be less than THB 5 and that at least 25% of the value of each cash-paid share must be paid before registration. Other laws and applications may make a higher amount necessary.

Must the registered capital be fully paid at incorporation?

Not in every ordinary incorporation. The statutory initial payment is at least 25% of the value of each share payable in money. The company may choose or be required by its circumstances to pay more. Work permits, licences, foreign business rules and other applications may require a different paid-up position.

Is THB 2 million enough for one foreign work permit?

It is a commonly used planning benchmark for a standard non-BOI company, but it is not a guarantee. The company and the applicant must satisfy the other applicable employment, immigration, documentary and operational requirements.

Can a company increase its registered capital later?

Yes. The company can increase its capital through the required shareholder resolutions, share subscriptions, document updates and DBD registration. Whether this is preferable to registering an appropriate amount at the outset depends on the business plan.

Does registered capital determine ownership or control?

Capital is divided into shares and therefore relates to shareholding, but the complete position also includes voting rights, director authority, authorised signing conditions, the articles of association and any shareholders’ agreement. Capital alone does not answer every control question.

Does a company need THB 2 million to register for VAT or open a bank account?

There is no universal THB 2 million rule for either step. VAT depends principally on the company’s activities, revenue and supporting position. Bank-account approval is subject to the selected bank’s compliance review and internal policy.

Before You Finalise the Capital

The most useful time to review registered capital is before the incorporation documents are prepared. At that point, the capital can be considered together with the proposed activity, shareholders, source of funds, director authority, office, licences and work permit plans.

If you are still deciding the broader structure, our main page on company registration in Thailand explains how these matters fit together.

Initial enquiries are handled by email so that our legal team can review the relevant information before recommending the appropriate course of action. You may provide a brief outline at the first stage and add further information where required.

This article provides general information as at the date stated above. It is not a substitute for legal, tax or accounting advice on a particular company, transaction or application.