Foreign Ownership in Thai Companies
The percentage of foreign ownership in a Thai company depends on the type of business and relevant regulations, primarily governed by the Foreign Business Act B.E. 2542 (1999) (FBA).
Foreign Shareholding Limits in Thai Companies
🔹 General Companies:
• Foreigners can hold up to 49% of shares.
• Thai nationals must hold at least 51% for the company to be classified as a “Thai entity.”
🔹 If Foreigners Hold More than 49%:
• The company must obtain a Foreign Business License (FBL) from the Ministry of Commerce.
• Alternatively, they may qualify for exemptions under special agreements or investment incentives, such as:
• Thailand-U.S. Amity Treaty → Allows U.S. citizens to hold 100% ownership in certain businesses.
• Board of Investment (BOI) or Eastern Economic Corridor (EEC) incentives → Certain businesses may be allowed 100% foreign ownership.
🔹 Businesses Restricted to a Maximum of 49% Foreign Ownership (Require an FBL):
• General service businesses (e.g., consulting, legal, accounting)
• Retail and wholesale businesses below the minimum capital threshold
• Real estate businesses (except in specific cases)
🔹 Businesses Where Foreigners Can Own 100% Without an FBL:
• Manufacturing for export
• Hotel operations (excluding land ownership)
• Certain software, technology, and innovation-related industries
📌 Summary:
✅ If foreigners hold 49% or less, the company can operate normally.
✅ If foreigners hold more than 49%, an FBL or special investment privileges (such as BOI incentives) may be required.
For specific business cases, consulting a lawyer or an expert in Thai business law is recommended.