Foreigners can own a business in Thailand, but certain restrictions apply under the Foreign Business Act (FBA). Some business activities are reserved for Thai nationals or require a majority Thai shareholder. However, there are several legal structures and options that allow foreigners to navigate these limitations and own a business in the country.
One common approach is to establish a Thai limited company, where the foreigner partners with Thai shareholders who hold at least 51% of the shares. This structure complies with Thai ownership regulations while allowing the foreigner to have a significant role in the management and operations.
Another option is obtaining a Foreign Business License (FBL), which permits foreigners to hold a majority of the shares in specific industries where foreign ownership is typically restricted. The FBL requires government approval and is granted for sectors that are considered beneficial for foreign investment.
Additionally, the Board of Investment (BOI) in Thailand offers various incentives, including tax exemptions and the possibility of 100% foreign ownership in certain promoted industries. This makes the BOI a valuable option for foreign investors looking to establish a business in Thailand.
For those with more specific needs, establishing a representative office or branch is another viable option. These entities are typically set up for non-commercial purposes such as market research and are not involved in direct trading or business transactions.
Brer Rabbit Legal provides expert guidance to foreign investors, helping them choose the best business structure that aligns with Thai laws while maximizing ownership and control. Whether considering a limited company, applying for an FBL, or seeking BOI promotion, Brer Rabbit Legal offers invaluable support to navigate the process successfully.