In This Guide
Thailand is a beast of a tourism market. Forty million visitors a year—that's not a typo. From backpackers in Khao San Road to billionaires in Phuket villas, everyone comes to Thailand. And the domestic tourism market? Even bigger. Thai people love to travel within their own country.
Here's the thing though—Thailand's tourism infrastructure is incredibly mature. That's good and bad. Good because suppliers, systems, and customers are sophisticated. Bad because competition is fierce and margins on standard products are thin. The agencies making real money here are either doing massive volume or have found smart niches where they're not competing head-to-head with thousands of others.
The foreign ownership question is the elephant in the room. Thailand doesn't allow majority foreign ownership of travel agencies without special permission. You'll need a Thai partner or some creative structuring. I'll cover the options honestly, including the legally questionable ones that many foreigners actually use.
Thailand's Tourism Scale
40M+
International visitors/year
$85B
Tourism revenue annually
12%
Of GDP from tourism
20%
Corporate tax rate
Where Thailand really shines:
- Inbound tourism: Endless demand from China, India, Europe, Middle East, and everywhere else. Beach resorts, cultural tours, nightlife, medical tourism—Thailand has it all.
- Medical tourism: Bangkok's hospitals are world-class. Combine medical procedures with recovery holidays. Growing 15-20% annually.
- MICE: Bangkok is a major conference destination. Regional headquarters, international events, corporate retreats.
- Wellness & retreats: Yoga retreats, detox programs, meditation centers. Especially popular with Western markets.
The Foreign Ownership Situation
Let's address this head-on because it's the biggest consideration for foreign entrepreneurs.
Thai law restricts foreign ownership of companies in most service sectors to 49%. Tourism/travel is on that restricted list. You cannot, as a foreigner, simply register a company with yourself as 100% owner and get a travel agency license.
Legal Options
Option 1: Thai Partnership
Partner with Thai nationals who own 51%. You own 49%. The Thai partners have majority control on paper.
Reality: This works if you actually trust your partners. Many successful foreign operators use this model with genuine business partners who add value.
Risk level: Low if partner is trustworthy
Option 2: BOI Promotion
Board of Investment offers incentives for qualifying businesses including permission for majority foreign ownership. Requires minimum investment and job creation.
Reality: Works for larger operations. Minimum investment typically THB 1-3 million. Takes 3-6 months to get approval.
Risk level: Low, but requires substantial capital
The Nominee Structure (Gray Area)
Many foreigners use "nominee" Thai shareholders who hold shares on paper but sign undated share transfers or side agreements. This is technically illegal under Thai law and has led to prosecutions. However, it remains common practice. If you go this route, understand you have no legal recourse if things go wrong. I can't recommend it, but I'd be lying if I said people don't do it.
My honest advice: If you're serious about Thailand long-term, find a genuine Thai partner who brings something to the table—local knowledge, connections, or capital. Or plan for BOI if you have the resources. The nominee route works until it doesn't.
Registering Your Thai Company
Assuming you've sorted the ownership structure, company registration is fairly straightforward:
Thai Company Limited (บริษัทจำกัด)
- Reserve company name: At Department of Business Development. Takes 1-3 days.
- Prepare memorandum of association: Includes objectives, registered capital, shareholder details.
- Hold statutory meeting: Shareholders approve articles of association.
- File registration: Submit to DBD with registration fee.
- Register for tax: Get tax ID, VAT registration if applicable.
Capital requirements:
- Minimum 3 shareholders (can be 2 Thai nationals + 1 foreigner)
- For work permit: THB 2 million registered capital per foreign employee
- For TAT license: minimum THB 50,000 registered capital (but more is better for credibility)
Cost: THB 20,000-50,000 total including government fees and legal assistance.
Timeline: 2-3 weeks for straightforward registration.
TAT Travel Agency License
The Tourism Authority of Thailand (TAT) regulates travel agencies. You need their license to operate legally.
License Categories
- Inbound (รับนักท่องเที่ยวต่างชาติ): For bringing foreign tourists to Thailand
- Outbound (ส่งคนไทยไปต่างประเทศ): For sending Thais abroad
- Domestic (ในประเทศ): For domestic Thai tourism only
- General: All of the above
Requirements
- Registered Thai company with travel/tourism as stated objective
- THB 200,000 guarantee: Bank guarantee or insurance bond (refunded if you close properly)
- Physical office: Must be in Thailand with proper signage
- Qualified manager: Thai national with tourism qualifications or experience
- Application fee: Around THB 2,000
Process
- Gather all documents (company registration, office lease, guarantee letter, manager credentials)
- Submit application at TAT regional office or Bangkok headquarters
- Office inspection by TAT officials
- Wait for approval (6-10 weeks typically)
- Receive license certificate
The guarantee: THB 200,000 sounds like a lot but it's held as security, not spent. You get it back if you ever close the business properly. Most agencies use insurance bonds (premium around THB 10,000-15,000/year) rather than tying up cash in bank guarantee.
Realistic Startup Costs
| Item | One-Time | Monthly |
|---|---|---|
| Company registration | THB 30,000-50,000 | - |
| TAT license application | THB 2,000 | - |
| Guarantee bond premium | - | THB 10,000-15,000/year |
| Office setup (Bangkok, modest) | THB 50,000-100,000 | THB 20,000-40,000 rent |
| Work permit (for foreigner) | THB 5,000-10,000 | - |
| Technology & website | THB 30,000-80,000 | THB 5,000-10,000 |
| Staff (2-3 people) | - | THB 60,000-100,000 |
| Working capital (6 months) | THB 200,000-400,000 | - |
| TOTAL | THB 350,000-700,000 | THB 95,000-165,000 |
In USD terms: roughly $10,000-20,000 one-time plus $2,500-4,500 monthly. Thailand sits in the middle ground—not as cheap as India, not as expensive as Singapore.
Where to Focus
Medical Tourism
Package hospital appointments with recovery holidays. Bangkok and Phuket hospitals are excellent. High-value customers, good margins, repeat business from satisfied patients.
Diving & Adventure
Thailand has world-class dive sites. Combine liveaboards, dive courses, island hopping. Specialized knowledge creates barriers competitors can't easily cross.
Wellness Retreats
Yoga, detox, meditation, spa packages. Growing demand from stressed Western professionals. Premium pricing accepted for genuine wellness experiences.
Golf Tourism
Thailand has 250+ golf courses. Package tee times, accommodation, transport for golf groups. Loyal customer base that travels repeatedly.
Avoid unless you have massive volume: Generic beach packages to Phuket/Pattaya, standard Bangkok city tours, backpacker hostels. Too competitive, too thin margins.
Frequently Asked Questions
Foreigners can own up to 49% of a Thai travel agency. The majority 51% must be Thai-owned. Exceptions: BOI-promoted companies can have higher foreign ownership. Many foreigners partner with trusted Thai business partners or apply for BOI promotion if they have sufficient capital.
THB 500,000-1,000,000 (USD 15,000-30,000) is realistic for a proper setup including company registration, TAT license, office, basic staff, and working capital. You could do barebones for THB 300,000 but that leaves little margin for error. The THB 200,000 guarantee is held as security, not spent.
TAT license takes 6-10 weeks from complete application. Add 2-3 weeks for company registration before you can apply. Total timeline: about 3-4 months from start to licensed operation. Having all documents properly prepared accelerates the process significantly.
Yes, TAT requires a physical office address with proper signage. Virtual offices don't qualify. The office will be inspected during the license application process. This adds to costs but is non-negotiable. Some operators rent small spaces in commercial buildings to meet requirements while actually working from elsewhere day-to-day.
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