Can Foreigners Own A Thai Company?

A foreign individual or company can own 100% of a Thai company where the business activity is not on the restricted lists in the Foreign Business Act. Manufacturing, export, many professional services, and most digital and technology businesses are open to full foreign ownership without any special approval.

The restricted lists cover businesses reserved for Thai nationals, including certain retail, agriculture, and service activities. Where the intended business falls on a list, full foreign ownership is not available without an exemption.

For restricted activities, two main routes exist. A Board of Investment promotion can grant foreign majority or full ownership for qualifying promoted activities, along with tax incentives. For US-owned companies, the Treaty of Amity allows majority ownership in certain service sectors that would otherwise be restricted.

Nominee structures, where Thai shareholders hold shares on behalf of foreigners, are unlawful. The authorities scrutinise company shareholding, particularly for land-holding companies, and a nominee structure can be unwound with serious consequences for the foreigner and the nominees.

The starting point is the activity, not the ownership. We check the intended business against the restricted lists before incorporation. If the activity is open, a standard Thai company with foreign shareholders is formed. If it is restricted, we assess whether BOI promotion or a treaty exemption is available, or whether the activity should be restructured to fall outside the restriction.

Registered capital is set with work permits in mind: the capital and the Thai-to-foreign employee ratio determine how many foreign staff can be sponsored. Getting the capital right at incorporation avoids a later capital increase and the filings it requires.

A foreign-owned company carries the same compliance as any Thai company: accounting, audited financial statements, corporate income tax, value-added tax where applicable, and social security for employees. Foreign directors and staff need work permits tied to their roles.

Compliance is not a one-off. Lapses in accounting or tax filings accumulate into penalties and, in serious cases, personal liability for directors. We set up the compliance calendar at incorporation so the obligations are met from the first month.