Is it possible to have a fully foreign owned company in Thailand ?

Unlike Singapore, Hong Kong etc , Thailand has few constraints for initial setup. For a normal Thai company, one needs to register the company with 51% Thai ownership and 49% foreign ownership More details about Company registration can be found at our website page https://startupinthailand.com/thailand-opportunities/registering-a-thai-company/

However, there are few options where one can have a company fully owned by foreigner specially suited for technology and manufacturing companies who are willing to put in large investments and looking at long term business. The companies would have to be granted by the license from Board of Investments. More details of that can be be found in this link https://startupinthailand.com/thailand-opportunities/thailand-board-of-investment/

As of my knowledge cutoff in September 2021, the laws governing foreign ownership of companies in Thailand are regulated by the Foreign Business Act (FBA). Generally, the FBA restricts certain business activities to Thai nationals or limits the percentage of foreign ownership in certain sectors. However, there are exceptions and conditions under which fully foreign-owned companies can operate in Thailand.

In some cases, foreign ownership is allowed through the Board of Investment (BOI) promotion, which encourages foreign investment in specific industries. The BOI provides various incentives and benefits to eligible foreign-owned companies, such as tax privileges, permission to own land, and relaxed foreign ownership restrictions.

Additionally, certain industries have specific regulations that permit full foreign ownership. These include export-oriented businesses, international trading companies, regional offices, and businesses within certain free trade zones.

In Thailand, there are certain restrictions on foreign ownership of companies, depending on the type of business activity. The Foreign Business Act (FBA) outlines regulations regarding foreign investment in various sectors. According to the FBA, some business activities are restricted or subject to conditions for foreign ownership, while others are prohibited altogether.

Certain business activities are classified as “List 1” activities, which are deemed to have significant impact on Thai national security, safety, or well-being. These activities typically require a Thai majority ownership or a specific ratio of Thai ownership, limiting foreign ownership to 49% or less. Examples of List 1 activities include transportation, communication, agriculture, and more.

Other business activities fall under “List 2,” which includes activities that have an impact on Thai national economic stability or cultural integrity. For List 2 activities, the FBA allows for up to 49% foreign ownership, subject to certain conditions and permissions.

It’s important to note that the regulations can change, and it’s advisable to consult with legal professionals or relevant government agencies to obtain the most up-to-date and accurate information. They can provide guidance specific to your intended business activities and help you navigate the legal requirements and procedures involved in establishing a foreign-owned company in Thailand.

It’s important to note that regulations and laws can change over time, and it’s advisable to consult with legal experts or professional services specializing in business incorporation in Thailand to obtain the most up-to-date and accurate information regarding foreign ownership of companies.

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