Can A Foreigner Own A Business In Thailand
If not then that company is considered foreign according to the Foreign Business Law. One way for foreigners to own a business in Thailand 100 is to get an investment promotion by the Board of Investment BOI Thailand.
In the vast majority of cases the company must be majority owned by Thais in terms of shareholders.
Can a foreigner own a business in thailand. Thai companies are legally allowed to own houses and lands in Thailand. The Investment Promotion Act grant sincentives to the business not the individual but under the BOI scheme a foreigner may control their Thai business something which can not be done with a conventional Thai Company Ltd. The majority of shares in a Thai company must be owned by a Thai citizen unless it is part of a special Board of Investment BOI program.
However you need to be aware that as a foreigner you can legally own a maximum of 49 of the shares in the company the other 51 must be owned by Thai nationals. The 49 limit for certain business activities can be exceeded or exempted if a Foreign Business License is granted. While there are ways to structure the company so that you retain control of the company as a foreigner its nonetheless an added cost and hassle.
In most cases its 49 foreign owned. The laws in Thailand are pretty nationalistic. Although starting business in Thailand only allows you to own 49 of the company shares as a foreigner and the other 51 must be Thai owned we can help you to control the authority by other different ways such as setting up a Priority of Shareholders to get a majority vote in the company for example.
Its important to hire an assistant or a lawyer with a lot of experience in creating a business in Thailand. Generally foreigners are not allowed to directly purchase land in Thailand. Under normal circumstances comparing to Western standards however a foreigner cannot truly own a business in Thailand to a 100 extent.
The most common option is to set up your own Thai Company to own the land on your behalf or enter a leasehold ownership with the Land Owner. Majority-Thai private limited company as a baseline of doing business in Thailand. They will set up a company here in Thailand.
You may purchase the property but the Thai laws prohibit foreigners from owning land in their own name. Fear not though there are many exceptions and possibilities in order for a foreigner to fulfill their dream of living and working in Thailand. As a general rule a Thai limited company limits foreign business ownership to a maximum of 49 meaning foreigners can hold no more than 49 of the shares.
Any foreigner wishing to promote a business or invest in Thailand may be granted specific privileges like the permission to own land. The process involved in establishing a business in Thailand can seem as quite complicated. In Thailand a startup indeed any business is classified as a foreign entity if more than 50 of its shares or partner capital are foreign owned.
If your company is Thai majority owned you can do almost any kind of legal business. A limited company registered in Thailand is considered a Thai company only if the majority of the shares are owned by Thais. But your company can own land in Thailand if it has a BOI promotion.
Sometimes it is a maximum of 39 foreign ownership and occasionally even less. According to the Investment Promotion Act Year 1977 Section 27 BOI promoted companies are allowed to own land to run promoted businesses deemed necessary by the BOI. Land Ownership You cant own land as a foreigner in Thailand under Thai law.
The most important thing to note is that Thai companies cannot be more than 49 foreign-owned. Inexperienced or misinformed investors may try to get over this obstacle by engaging Thai nominee shareholders to hold a 51. This will help you a lot and it.
Thailand forbids foreigners to own actual land so therefore it is easier for a foreigner to enlist in the help of a law firm and set up a Thai Company Ltd. However you cannot apply for Thailand BOI promotion for a bakery business because it is not one of business activities that we need to promote for foreign investment or expertise at the present. The company must generate revenue and also have a list of Thai shareholders.
As you can see a foreigner can own a company in Thailand but there are some very specific requirements to keep in mind. The most popular way for a foreigner to buy property in Thailand is to set up a company and then buy the land through it. This means that the company can be no more that 49 foreign owned.
However its important that the company is a legitimate business. This can only be done however if the company is at least 51 Thai-owned as most foreigners are not allowed to own more than 49 of a Thai company. This means that foreigners can only own up to 49 of a Thai company.
This means that you must have a Thai business partner or several who own more than 51 of the company. This rule often leads people to believe their only option is to form a company with majority Thai ownership to ensure their business.
