Thailand is moving to ease restrictions on foreign business ownership by amending its Foreign Business Act (FBA), a significant step aimed at attracting international investment and modernizing its economic framework.
On April 22, 2025, the Thai Cabinet approved in principle a proposal to amend the FBA. The Ministry of Commerce has been tasked with drafting the amendments, focusing on reducing regulatory barriers that hinder economic development, particularly in sectors like technology and startups.
The proposed amendments aim to align the law with contemporary economic conditions and technological advancements, thereby enhancing Thailand’s competitiveness.
The reforms are expected to benefit sectors that require significant foreign investment and expertise, such as software development, telecommunications, and other service industries. This move is seen as a way to foster innovation and economic growth.
Nominee Shareholder Crackdown: Concurrently, Thai authorities are intensifying efforts to eliminate the use of nominee shareholders—Thai nationals holding shares on behalf of foreigners to circumvent ownership restrictions. This practice is illegal under Thai law, and the government is reinforcing its commitment to enforce compliance.
Implications for Foreign Investors
These proposed changes signal Thailand’s intent to create a more inviting environment for foreign investors by reducing bureaucratic hurdles and offering greater ownership opportunities. However, the specifics of the amendments, including which industries will be affected and the extent of ownership allowed, are still under development.