Why is Business Registration Necessary? Can You Operate Without Registering?
Business registration is the process by which a business operator or income earner from selling goods/services notifies the Commerce Office or local municipality of their business name and details, in order to obtain a “commercial registration,” which serves as official documentation confirming that the individual operates the business legally.
Who is required to register a business?
According to the Commercial Registration Act B.E. 2499 (1956) and its amendments, anyone engaging in commercial or service activities for income must register their business within 30 days from the start date of operations. The Department of Business Development, Ministry of Commerce, categorizes those required to register into five types as follows:
- A sole proprietor or business owned by a single individual.
- Limited companies or public limited companies.
- General partnerships.
- Registered ordinary partnerships or limited partnerships.
- Foreign juristic persons establishing branch offices in Thailand.
1. Businesses required to register for ordinary commercial registration (sole proprietorship).
This group consists of individuals conducting business in their own name without registering as a juristic person (such as a company or partnership).
Examples of businesses that fall into this category include:
- Grocery stores, retail and wholesale shops,
restaurants, coffee shops, and cafés. - Traditional Thai massage shops and beauty salons.
- Laundry and dry-cleaning shops.
Online businesses (Shopee, Facebook, Instagram, TikTok, etc.). - Website development, graphic design, and typing services.
- Freelancers with steady income or clearly established businesses.
Note: In the case of online sales, if the business is continuous, has regular income, and actively promotes itself, it must register for ordinary commercial registration according to the law.
2. Businesses required to register for juristic commercial registration (legal entities).
This group consists of businesses that have already registered as legal entities under the law and must additionally register for commercial registration to officially demonstrate that the business is actively operating.
Types of legal entities required to register:
- Limited Company (Ltd.)
- Limited Partnership (Ltd. Partnership). ข้อดี-ข้อเสียการจด หจก.
- Registered Ordinary Partnership.
- Joint Venture.
- Foreign companies registering as branch offices in Thailand.
Types of businesses for legal entities required to registerfor commercial registration
- Wholesale and retail trade.
- Construction contracting and manufacturing.
- Services such as consulting, engineering, and system design.
- Food processing and garment manufacturing factories.
- Transportation and logistics businesses.
- Technology businesses such as software, applications, platforms, etc.
Which types of businesses are exemptfrom commercial registration?
Certain types of businesses are not required to register commercially because their nature does not fall under “profit-seeking trade” like typical businesses, or they are regulated under other specific laws.
- Commercial activities conducted for religious support or charitable purposes.
- Itinerant trade or street vending businesses.
- Commercial activities conducted by government ministries, bureaus, or departments.
- Commercial activities conducted by foundations, associations, or cooperatives.
- Commercial activities of legal entities established by specific Acts or Royal Decrees.
- Commercial activities of farmer groups (registered under Ministerial Regulation No. 141 dated May 1, 1972).
Documents Required for Business Registration
Business registration can be completed within the same day if all required documents are properly prepared. The necessary documents to prepare include:
- Form Th.P. (obtained from the registration office).
- Copy of the operator’s national ID card.
- Copy of the operator’s household registration.
- Copy of the lease agreement or proof of ownership of the business premises.
- A map showing the location of the business premises.
- Power of attorney (if authorizing someone else to handle the registration).
- Photographs of the business premises (some offices may request additional photos).
In the case of foreigners, additional documents are required.
- Passport.
- and must apply for a work permit
- A valid legal visa.
Where to Submit Business Registration? Where Should You Register Your Business?
1. For business establishments located in Bangkok.
If your business establishment is located within Bangkok,
- go to the district office where your business is situated and submit your application to the “Commercial Registration Division” of that district office.
For example, if your shop is in Din Daeng district → submit at the Din Daeng District Office.
Important! You must submit your documents only at the district where your business is located. You cannot register your business in other districts.
2. For business establishmentslocated in provinces.
If your business establishment is in a province,
- go to the Provincial Commerce Office where your business is located.
For example, if your shop is in Chiang Mai Province → submit at the Chiang Mai Provincial Commerce Office.
Online submission method
You can submit your business registration application through the DBD e-Registration system of the Department of Business Development.
- Login : https://ereg.dbd.go.th/
- This service is available for certain types of businesses only (especially legal entities).
- Applicants must have a digital signature to verify their identity.
Key Compliance Requirements for Entrepreneurs
The Department of Business Development, Ministry of Commerce, has established requirements that entrepreneurs must comply with, which can be fulfilled through the following methods:
1. Business registration must be completed within 30 days from the date of starting the business, making changes to the registration details, or ceasing business operations.
2. The commercial registration certificate or its equivalent must be displayed prominently and visibly within the office premises.
3. In case the commercial registration certificate is lost or damaged, a new application must be submitted within 30 days from the date of loss or damage.
4. A business name sign must be installed within 30 days. The sign should display both the head office and any branch offices, with clear and legible Thai characters matching the registered business name. For branches, the word “ branch ” must also be clearly indicated on the sign.
5. In the event of an office inspection, the business owner must grant permission to the registrar or authorized officials to enter and inspect the premises.
Business registration is extremely important for entrepreneurs as it serves as legal proof that the business operates correctly and transparently. It enhances the credibility of the business with customers and partners, facilitates opening business bank accounts, applying for loans, or participating in government support programs. Additionally, it forms the essential basis for registering for Value Added Tax (VAT) (Form Por.Por.20) and for properly complying with tax regulations set by the Revenue Department. Having commercial registration allows the business to grow sustainably within the system, reduces legal risks in case of disputes, and serves as a key tool for accessing online markets and electronic payment systems. If you want your business operations to proceed smoothly, FDI offers services for submitting business registration documents, Por.Por.20 VAT registration, and other business license applications. Let us assist you in helping your business grow without interruption.
FDI provides comprehensive services for business registration, Por.Por. 20 (VAT registration), and other licenses.
At FDI, we are experts ready to provide consultation on company registration and offer services for registering licenses such as P.P.20, P.P.30, and all types of business licenses required to operate in Thailand.We deliver fast, legally compliant service with expert advice, managing every step thoroughly. Contact us to confidently start your business journey.
Contact Us
- Facebook : FDI Group – Business Consulting
- @fdigroup
- Phone : 02-642-6866, 02-642-6869, 02-642-6895
- E-mail : infojob@fdi.co.th
- Website : www.fdi.co.th
BlogArticles
How to set up a company for foreigners in Thailand
Thailand has high business potential. Attract investors from around the world With a stable economy...
Read Moreห้างหุ้นส่วนสามัญ คืออะไร? เข้าใจง่ายๆ ใน 5 นาที
ห้างหุ้นส่วนสามัญ เป็นรูปแบบหนึ่งของนิติบุคคลที่เกิดจากการรวมตัวกันของบุคคล 2...
Read MoreHow to register a company for foreigners! It's not as difficult as you think.
Thailand has high business potential. Attract investors from around the world With a stable economy...
Read More