Starting a Hospitality Business in Thailand: Step 1 - Company Setup That De-Risks Everything Else

Launching a hospitality venture in Thailand is exciting—but the first step, company setup, determines how smooth (or painful) the rest of your journey will be. Get this wrong, and every downstream milestone—permits, construction, hotel licensing—becomes a compliance headache. Get it right, and you’ll unlock faster approvals, tax benefits, and investor confidence.

Here’s how to start strong with a structure that supports your long-term goals.

Why Company Setup Is the Foundation

Thailand’s hospitality sector is regulated by multiple authorities. Understanding the landscape is crucial for your long-term success. These authorities include:

• Department of Business Development (DBD) for incorporation

• Board of Investment (BOI) for foreign ownership and incentives

• Ministry of Commerce for Foreign Business Licenses (FBL)

• Revenue Department for tax and VAT

• Immigration & Labor for visas and work permits

  
  

Your incorporation choices ripple through all these regulations. That’s why we frame this as six critical decisions.

A lively street in Thailand showcasing hospitality businesses.

Decision 1: Ownership Path - Thai Ltd vs BOI vs FBL

Choosing the right ownership path is critical. Here are your primary options:

1. Thai Limited Company: This structure requires majority Thai shareholding (51%). It’s common for smaller projects or when local partners add value.

   
   

2. BOI Promotion: If eligible, you can own 100% foreign equity, enjoy tax holidays, and import duty exemptions. This structure is perfect for large-scale hospitality or mixed-use projects.

   
   

3. Foreign Business License (FBL): This is necessary if your activity falls under the Foreign Business Act, and you don’t have BOI promotion.

   
   

Pro tip: BOI promotion isn’t automatic—you must meet specific criteria (capital, job creation, sustainability). We prepare eligibility assessments and draft submissions for clients.

Decision 2: Activity Codes & Future Permits

Mapping your business objectives to the correct activity codes is essential for future compliance. Why? Your company’s registered objectives determine:

• Whether you need an FBL

• The permits you can apply for later (e.g., hotel license)

• Banking and tax compliance

  
  

For instance, if your primary goal is to develop a hotel, you need to ensure your activity codes reflect that to avoid complications in the approval process down the line.

A contemporary hotel reception ready to welcome guests.

Decision 3: Digital Incorporation via DBD Biz Regist

Thailand’s DBD Biz Regist platform now handles a range of administrative tasks online, including:

• Name reservation

• Memorandum of Association (MoA)

• Company registration

  
  

This expedites the process, particularly if your documents are clean and your objectives align with your future licensing path. E-signatures for directors further simplify this process.

Decision 4: Tax Profile - VAT & Compliance

When your annual revenue exceeds THB 1.8 million, VAT registration becomes mandatory. However, voluntary registration earlier can benefit your cash flow by allowing you to reclaim input VAT on construction and furniture, fixtures, and equipment (FF&E) purchases.

Setting up e-filing early helps avoid penalties that can disrupt your financial planning. Establishing a clear tax profile before you begin operations can significantly reduce compliance headaches later.

Decision 5: Banking & Capital Injection

When it comes to banking in Thailand, the requirements can be strict:

• Proof of your registered address

• Director/shareholder Know Your Customer (KYC) documentation

• Source of funds documentation

  
  

If you’re operating under BOI promotion, your promotion certificate simplifies foreign currency transactions, making it a practical choice for ventures that expect international dealings.

A luxurious resort pool designed for guest relaxation and comfort.

Decision 6: Visas & Work Permits

Navigating the visa and work permit landscape in Thailand is critical for your hospitality venture. The Long-Term Resident (LTR) Visa has emerged as the go-to option for founders and senior hires. This visa offers:

• 10-year renewable terms

• Digital work permits

• Fast-track processing via the Thailand Investment & Expat Services Center (TIESC)

  
  

Understanding the visa landscape early can prevent delays in hiring and operational readiness.

A Typical Timeline (30 Days)

Getting your business registered and operational in Thailand can be streamlined. A typical timeline looks like this:

1. Ownership path & eligibility check (BOI vs FBL vs Thai Ltd)

2. Name reservation & incorporation (DBD Biz Regist)

3. Tax ID & VAT registration

4. Bank account opening

5. Visa & work permit applications

   
   

Following this timeline can help you establish your business within a month, allowing you to focus on your hospitality concept.

Common Pitfalls to Avoid

Avoid these common pitfalls to ensure a smooth establishment of your hospitality business:

• Waiting too long to register VAT: Neglecting VAT registration can lead to cash flow pain during the fit-out process.

• Assuming “hotel license” is part of incorporation: Remember, obtaining a hotel license is a separate process entirely.

  
  

• Ignoring FBA reform: As regulations evolve, particularly with changes coming in 2025, staying updated is crucial for compliance.

  
  

How AD ASIA Consulting Helps

At AD ASIA Consulting, we deliver end-to-end setup solutions, allowing you to concentrate on your concept. Our services include:

• Legal & regulatory: Assistance with BOI/FBL strategy, incorporation, VAT registration, and contracts.

• Project & construction management: From design to handover, we have you covered.

• Pre-opening readiness: We help establish standard operating procedures (SOPs), staffing, and compliance with brand standards.

  
  

By working with us, you will have:

• A registered company within 30 days

• Tax compliance firmly in place

• A clear roadmap for permits and hotel licensing

  
  

Book a Consultation

Don’t miss the chance to get started on your hospitality journey in Thailand. Book a 45-minute consultation with us, and receive:

• A decision memo distinguishing between BOI vs FBL vs Thai Ltd

• A timelined checklist for incorporation and permits

• A cost and timeline estimate for your complete hospitality project

  
  

Our team specializes in project development, design & fit-outs, procurement, legal & regulatory services in Thailand and ASEAN. Let us help you make your hospitality venture a success.

Visit AD ASIA Consulting for more information.