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ResourcesCorporate and Tax AdvisoryThailand Corporate LawCould an Offshore Company Own a Thai Company?

Could an Offshore Company Own a Thai Company?

Transcript of the above video:

As the title of this video suggests, we are discussing whether or not an offshore company can own a company here in Thailand; so offshore is a non-Thai Corporate entity having an ownership interest in a Thai Corporate entity. Long story short is yes this is possible. Now that stated, depending on what the onshore corporation is looking to do would probably dictate the ownership interest the foreign corporation could have.

As we have discussed in other videos on this channel, it is possible for American corporations to do business here in Thailand pursuant to the provisions of the US-Thai Treaty of Amity. We have discussed this at length in other videos including one I made contemporaneously with this one. Setting that aside, the Foreign Business Act requires many business operations here in Thailand which have foreign interests must be 51% Thai-owned to a minority 49% foreign earned. So in many circumstances where non-American corporations are involved, you are going to be looking at a situation where yes the offshore company can own an interest but it may not be a controlling interest or a majority interest here in Thailand notwithstanding the fact that it can have an interest in that company.  

Again it is going to be very circumstantially dependent. Things like BOI Certification may change this analysis as well. I have made other videos on this channel on that topic but long story short, yes it is possible but depending on the type of business activity it may not be possible for that offshore entity to own a majority of an onshore Thai Company.