Hor Jor Kor vs Bor Jor Kor: which Thai business entity should you register?

A "นิติบุคคล" (juristic entity) is the umbrella term for business structures the law treats as separate from their owners. Thailand's Department of Business Development (DBD) registers several types, including a registered ordinary partnership, a limited partnership (ห้างหุ้นส่วนจำกัด, Hor Jor Kor), a limited company (บริษัทจำกัด, Bor Jor Kor), and a public limited company. For small business owners and online sellers weighing a move from operating as an individual to incorporating, the two most commonly compared are Hor Jor Kor and Bor Jor Kor — both are straightforward to register, need few people, and suit small-to-mid-size businesses. This page compares the real differences: minimum partners or shareholders, liability, fees, auditor requirements, and tax rates, before you register at DBD. A limited partnership (ห้างหุ้นส่วนจำกัด, Hor Jor Kor) needs at least 2 partners: at least one managing partner with unlimited liability for the partnership's debts, and at least one limited partner whose liability is capped at their agreed capital contribution. The DBD registration fee is 1,000 baht regardless of registered capital. A small Hor Jor Kor — registered capital not exceeding 5 million baht, with total assets and revenue each not exceeding 30 million baht per year — can have its financial statements signed by a Tax Auditor (TA) instead of a Certified Public Accountant (CPA), which keeps early-stage accounting costs down. A limited company (บริษัทจำกัด, Bor Jor Kor, written "Co., Ltd." in English) needs at least 2 shareholders, down from the previous minimum of 3, effective 7 February 2023. Every shareholder's liability is capped at the unpaid value of their shares. The DBD registration fee is a flat 5,000 baht regardless of registered capital (since a 2018 ministerial regulation change), plus a 500-baht fee for the Memorandum of Association (หนังสือบริคณห์สนธิ) — roughly 5,500 baht total for a basic company. Confirm current fees at dbd.go.th before registering. Unlike a Hor Jor Kor, every Bor Jor Kor regardless of size must have its annual financial statements audited and signed by a CPA. Bor Jor Kor tends to suit businesses planning to grow the team, bring in more investors, or work with corporate partners more familiar with a company structure. There's no fixed rule for when to incorporate, but accountants commonly use this rough guide: once annual net profit approaches roughly 750,000 baht or more, the progressive personal income tax rate (up to 35%) starts running noticeably higher than the corporate income tax rate (a standard 20%, with reduced rates available for SMEs whose registered capital does not exceed 5 million baht). That's the point where incorporating starts paying off on both tax and credibility. This figure is only a rough starting point, not tax advice — calculate it against your real numbers with an accountant and check current rates at rd.go.th before deciding. For online sellers on Shopee, Lazada, TikTok Shop, or LINE MyShop whose profit has grown enough to consider a Hor Jor Kor or Bor Jor Kor, the bookkeeping load changes immediately after registering: monthly income-expense records, VAT registration once revenue passes 1.8 million baht a year, annual financial statements filed with DBD, and corporate income tax returns (PND50/51) instead of filing personal income tax once a year as an individual. MooMooNext helps organize sales data from marketplace reports, receipts and payment records, and VAT-related data into a form ready to hand to an accountant for review. MooMooNext does not register the entity or file tax returns on a user's behalf.