Understanding Your Options
for Doing Business in Thailand
Thailand restricts foreign ownership in most business sectors under the Foreign Business Act B.E. 2542. Several legal pathways exist for foreign investors to operate here — each with distinct eligibility criteria, ownership limits, and obligations. This page sets out the key structures plainly.
Speak to Our TeamThe Foreign Business Act and What It Means
Under the Foreign Business Act (FBA), a company is considered “foreign” if 50% or more of its shares are held by non-Thai nationals. Most service, retail, and professional businesses fall under the FBA’s restricted lists, meaning a foreign-majority company cannot simply register and trade without additional approval or an exemption.
The structures below are the primary legal routes that allow foreign nationals or foreign-controlled entities to operate in Thailand. Some provide full or majority foreign ownership outright. Others limit revenue or activities. The right choice depends on your business model, sector, capitalization, and long-term plans.
If you want a guided walkthrough to find the right fit, our Best Foreign-Owned Structure tool walks through the key decision points step by step.
Foreign Ownership Structures at a Glance
The Treaty of Amity between Thailand and the United States (1966) allows US citizens and US-incorporated companies to own 100% of a Thai company and operate in most business sectors on the same footing as Thai nationals — without a Foreign Business License.
Exemptions include certain reserved sectors (land ownership, communications, transport, fiduciary services). Amity status must be formally registered and maintained. Note that even a US shareholder can hold shares as a nominee for a non-US beneficial owner — Amity does not cure underlying nominee arrangements.
A Foreign Business License issued by the Department of Business Development allows a foreign-majority company to operate in sectors on the FBA’s restricted lists. It is the standard route for non-US investors who require majority foreign ownership and intend to earn revenue in Thailand.
FBL applications require a detailed business plan, evidence of benefit to Thailand, and substantial capitalization. Approval timelines vary and are not guaranteed. An FBL does not grant land ownership rights.
The Board of Investment promotes targeted industries — manufacturing, technology, agriculture, medical, logistics, and others — by granting promoted companies the right to hold majority or full foreign ownership, corporate income tax exemptions or reductions, and in some cases the right to own land for business use (factory, hotel, staff accommodation — not residential land for shareholders).
BOI promotion requires an application, business plan, and commitment to minimum investment thresholds. Promoted activities must be maintained to retain benefits. BOI status can be applied for after company incorporation. SILQ assists with both the company formation and the BOI application.
The EEC is a special economic zone covering three Eastern provinces with enhanced incentives beyond standard BOI promotion — extended tax holidays, infrastructure support, expedited permitting, and dedicated one-stop service. It targets 12 “S-curve” industries including robotics, aviation, biofuels, digital, and medical hubs.
EEC investment provides full foreign ownership rights within the zone. Companies locating operations in the EEC should assess whether their activity qualifies under the target industry list before committing to the structure.
A Representative Office allows a foreign parent company to maintain a presence in Thailand for non-revenue activities: market research, sourcing, quality control, liaison with local suppliers, and promotion of the parent’s goods or services. It cannot sign contracts, accept orders, or generate any income in Thailand.
All operating costs must be funded by remittances from the parent company. Rep Offices are suitable for companies assessing the Thai market or supporting procurement operations without yet committing to full incorporation.
A Trade and Investment Support Office (TISO) is a BOI-approved structure that allows a foreign entity to establish an office in Thailand focused on facilitating investment and trade between Thailand and overseas counterparts. Like a Rep Office, a TISO cannot earn revenue in Thailand.
The key distinction from a Rep Office is purpose: a TISO is oriented toward connecting overseas investors and Thai businesses — it is more commonly used by trade promotion organizations, investment facilitators, and sector-focused intermediaries rather than individual operating companies.
An import/export company registered in Thailand under the FBA requires Thai-majority ownership (at least 51%) unless the company holds an FBL, BOI promotion, or Amity status. For foreign investors who accept a minority stake and partner with a Thai business, this is a straightforward route to participate in trade activity.
Alternatively, foreign investors seeking full or majority control of a trading company should pursue one of the pathways above. The appropriate structure depends on the product, sector, and the investor’s willingness to take on Thai partners with genuine economic interests.
Still Not Sure Which Structure Fits?
Our interactive decision tool walks you through the key questions — revenue, nationality, location, BOI eligibility, land needs — and points you toward the right structure for your situation. It takes about two minutes and is for guidance only.
Use the Structure FinderSpeak to Our Team
We advise on the full range of foreign investment structures. Send us a message and we will be in touch shortly.