Registered capital is the total amount of capital declared when setting up a company in Thailand. It represents the company’s financial commitment and determines its ability to issue shares to shareholders. While it does not need to be fully paid up initially, it plays a crucial role in business operations, especially for obtaining work permits and ensuring credibility with clients and partners.

The required registered capital depends on the nature of the business and its ownership structure:

• Thai-Owned Companies: There is no minimum registered capital requirement unless specified by industry regulations.

• Foreign-Owned Companies: Typically, a minimum registered capital of 2 million THB per foreign director is required to qualify for a work permit.

• Board of Investment (BOI) Companies: The BOI may impose different capital requirements based on the promoted activity.

For businesses applying for Foreign Business Licenses (FBL), the capital requirement is usually at least 3 million THB per restricted business activity under the Foreign Business Act.

While registered capital is the total declared capital, paid-up capital refers to the actual amount deposited into the company’s bank account. For most Thai Limited Companies with foreign shareholders, only 25% of the registered capital needs to be paid up initially. 

The Thai Shareholder will need to prove 25% of their share value is in their bank account. For example:

Registered Capital x Thai Shareholders % share x 25%

2,000,000 x 51% x 25% = 255,000 baht

Selecting the right amount of registered capital depends on various factors, including:

• Business size and industry

• Plans for hiring foreign employees where each work permit requires 2 million baht registered capital

• Legal requirements for specific licenses

• Investor confidence and credibility

For Companies that are 100% Thai owned there is no need to show evidence of paid up capital.