Integrity Legal - Law Firm in Bangkok | Bangkok Lawyer | Legal Services Thailand Back to
Integrity Legal

Legal.co.th - Resources 

Research & gain insights into Thai, American, and International Law.

 

Contact us: +66 2-266 3698

info@integrity-legal.com

ResourcesCorporate and Tax AdvisoryThailand Corporate LawForeign Company in Thailand: Is 100% Ownership Possible?

Foreign Company in Thailand: Is 100% Ownership Possible?

Transcript of the above video:

As the title of this video suggests, we are discussing Thai Corporate Law; specifically we are discussing foreigners owning companies here in Thailand.

A question that oftentimes comes up is "can I own 100% of a company here in Thailand?" Well the answer to that, not trying to be overly vague is, "that depends on the circumstances". Depending on the underlying activity of the company, it may be possible to have 100% foreign ownership. Not all business activities are covered under the Foreign Business Act and therefore it may be possible, if one's proposed business activity lies outside of those restricted businesses it may be possible to have 100% foreign ownership. Also it may be possible to obtain a Foreign Business License for a type of business which is restricted by the Foreign Business Act and once obtained, that license will provide the company the ability to do business in much the same way a Thai majority company can do business here in the Kingdom.

Those who are American citizens may avail themselves of the US-Thai Treaty of Amity here in Thailand.  The Amity Treaty allows companies in Thailand with a majority ownership of Americans or it could be a 100% American owned, those types of companies, so long as they are certified in compliance with the Treaty and other relevant Thai Law are able to operate with was called "National Treatment" and do business in much the same way that a Thai counterpart can do business here in the Kingdom. 

Finally there is the Thai Board of Investment. In Thailand the Board of Investment is tasked with encouraging foreign investment in Thailand especially in certain industries for example the tech industry, biomedical industries, these type of industries are currently sort of for lack of better term "en vogue" at the moment and the Board of Investment is tasked with providing those companies should they fit the relevant criteria, providing those companies with certain benefits including but not limited to Foreign Business Certification to allow them to do business notwithstanding 100% foreign ownership. So the Thai BOI may be an avenue by which a foreigner can get their company 100% in their name or in an offshore entity's name and proceed to do business here in the Kingdom. 

So while Thailand does have some restrictions with respect to foreigners doing business, there are mechanisms for overcoming these restrictions and those who are looking into doing business in the Kingdom of Thailand are well advised to seek professional legal advice in order to ascertain what their options are for doing business notwithstanding the provisions of the Thai Foreign Business Act.