Set up a Company & Operate in Thailand — Clear and Compliant

Legal Unit helps foreign founders choose the right path (BOI, FBL, Treaty of Amity, Rep/Branch), then execute company registration, visas & work permits, banking, tax, payroll, and ongoing compliance.

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A Critical Warning: The High Risk of Using "Nominee" Shareholders

For decades, some foreigners have been advised to use a "nominee" structure to bypass the 51% Thai ownership requirement under the Foreign Business Act. This illegal practice involves a Thai national holding shares "in name only" while the foreign investor provides all the capital and retains control.

What was once treated as a "grey area" is now a primary enforcement target for the Thai government. This is not a low-risk strategy; it is a high-risk liability.

How Authorities Are Cracking Down

Thai authorities are no longer just "stricter"; they are more technologically advanced.

The Department of Business Development (DBD) now utilizes its Intelligence Business Analytics System (IBAS). This system actively cross-checks your company's data with the Revenue Department (e.g., personal tax filings) and the Land Office to identify suspicious structures.

An investigation will be triggered if they find red flags, such as:

  • Financial Means: Does the Thai shareholder have the provable income or financial standing to have afforded their shares?

  • Real Involvement: Is the nominee genuinely participating in the business? Are they attending shareholder meetings and receiving dividends, or are they just a name on a paper?

Real Penalties and Active Enforcement

These are not empty threats. The government is actively pursuing and prosecuting these cases, with a recent focus on high-profile tourism and real estate sectors.

  • As reported by Khaosod English, authorities have recently targeted hundreds of businesses on Koh Samui and Koh Phangan suspected of operating with nominees.

  • The Bangkok Post has also highlighted stern warnings from the government, signaling a clear and ongoing commitment to ending this practice.

The penalties for violating the Foreign Business Act are severe and apply to both the foreign investor and the Thai nominee:

  • Imprisonment for up to 3 years.

  • Fines ranging from 100,000 to 1,000,000 THB.

  • Forced Dissolution of the company and a court order to cease all business operations.

The Legitimate & Sustainable Path to Success in Thailand

Beyond the risks of non-compliance, Thailand offers a secure, stable, and highly profitable environment for foreign investors who follow the correct legal pathways. The country is not only open for business—it is actively competing to attract high-value foreign enterprises.

Why Thailand? The Strategic Advantage

Before exploring the specific legal structures, it's important to understand why Thailand is consistently a top choice for foreign direct investment.

  • Strategic Gateway to Asia: Located in the heart of mainland Southeast Asia, Thailand offers unmatched access to the 660-million-consumer ASEAN market. It serves as a natural logistics hub for trading with China, India, and the entire Greater Mekong Sub-region.

  • Robust Infrastructure: The country boasts world-class international airports, deep-sea ports, and a modern road network. Its digital infrastructure, with widespread 5G and high-speed internet, is also a key government priority.

  • Skilled & Cost-Effective Workforce: Thailand offers a highly-skilled, educated, and cost-effective labor force, particularly in manufacturing, engineering, and services. Labor costs are significantly more competitive than in China and other regional hubs.

  • Favorable Business Environment: With a stable economy, pro-investment government policies, and a vast network of Free Trade Agreements (FTAs), Thailand has established itself as a reliable and business-friendly jurisdiction.

A Nation Eager for Your Expertise: Thailand's Promoted Industries

The Thai government is actively encouraging investment in specific, high-value sectors that align with its "Thailand 4.0" development plan. If your business operates in one of these fields, you are not just allowed to be here—you are wanted.

Key promoted industries include:

  1. Digital & Data: Data Centers, AI development, Cloud Services, and other advanced digital technologies.

  2. Electric Vehicles (EVs): Manufacturing of EVs, batteries, charging components, and the entire EV supply chain.

  3. Advanced Agriculture & Food-Tech: Precision farming, bio-food products, and sustainable food technology.

  4. High-Value Medical & Wellness: Advanced medical tourism, wellness centers, and medical device manufacturing.

  5. Green & Bio-Industries: Renewable energy, waste-to-energy solutions, and businesses aligned with the Bio-Circular-Green (BCG) economic model.

For businesses, especially those in these promoted fields, Thailand provides powerful legal tools to bypass many of the usual restrictions. This opens the door to incentives like 100% foreign ownership, extensive corporate tax holidays, and simplified visas for your entire team of experts.

What About Other Businesses?

Even if your business is not on the high-priority list, Thailand remains an excellent and viable choice.

Most foreign-owned businesses in Thailand—such as restaurants, consulting firms, service providers, and import/export operations—are not eligible for BOI promotion. However, they operate successfully and legally every day through other well-established structures.

These legitimate options, which we will detail in the following sections, include:

  • Forming a legitimate Thai Limited Company (the 51/49 structure) with a bona fide Thai partner.

  • Applying for a Foreign Business License (FBL) for specific activities.

  • Utilizing special treaties, such as the U.S. Treaty of Amity for American citizens.

Thailand Entry Options

Route Best for Foreign ownership License/Exemption Visas & Work Permits Typical timeline Pros Considerations
BOI Company Tech, manufacturing, R&D, promoted services Up to 100% BOI Promotion BOI-facilitated ~8–16 weeks (varies by activity) Tax & non-tax incentives; faster immigration; bankable Eligibility & post-approval conditions apply
FBL (Foreign Business License) Restricted service businesses selling into TH market Up to 100% (if granted) FBL under FBA Standard (ratios may apply) ~10–16 weeks Allows operation in restricted areas Case-by-case discretion; compliance duties
Treaty of Amity (U.S.) U.S. majority-owned service businesses Up to 100% (exceptions apply) Foreign Business Certificate Standard/streamlined ~4–10 weeks National treatment for most services Ownership chain proof; sector exceptions
Representative Office Pre-sales support, QA, sourcing (no revenue) 100% Rep Office notification Limited; tied to RO ~4–8 weeks Low tax exposure; test market No income; limited scope
Branch Office Delivering foreign HQ services in TH 100% Branch registration + license Standard ~8–14 weeks Direct control by HQ Taxable presence; compliance load

Note: Timelines are indicative; exact durations depend on activity, documentation quality, and examiner review.

The Ultimate Solution: 100% Foreign Ownership with BOI Promotion

For many foreign investors, Thailand's Board of Investment (BOI) is the single most powerful tool for establishing a successful and secure business. It is the government's primary mechanism for attracting high-value investment and is the key to bypassing many of the standard restrictions of the Foreign Business Act.

What is the Board of Investment (BOI)?

In practice, the BOI is a government program that grants a wide range of tax and non-tax incentives to businesses whose activities align with Thailand's national development goals.

Legally, the BOI is a state agency operating under the Investment Promotion Act B.E. 2520 (1977). It has the authority to issue a "Promotion Certificate" to an approved company. This certificate grants specific legal rights and privileges, including the right to 100% foreign ownership within the scope of the promoted activity.

This is not a niche program. Investor confidence in Thailand is at a peak. In just the first nine months of 2025, the BOI approved applications for over 2,400 projects, demonstrating continued momentum and a high level of trust from the global investment community.

Key Benefits of BOI Promotion

While the specific incentives depend on the business activity and its merits, the key benefits of a BOI promotion are unmatched:

  • 100% Foreign Ownership: The most significant advantage. A BOI-promoted company can be 100% foreign-owned, even in business sectors normally restricted by the Foreign Business Act.

  • Corporate Tax Holidays: A complete exemption from corporate income tax for a period of up to 13 years, depending on the industry and its qualifications.

  • Import Duty Exemptions: Significant cost savings, including exemptions or reductions on import duties for machinery, raw materials, and other items used in the promoted activity.

  • Permission to Own Land: A BOI-promoted company can be granted the right to own land for its operations, a privilege normally forbidden to foreign-majority companies.

  • Facilitated Visas & Work Permits: The BOI provides a streamlined, one-stop service for obtaining visas and work permits for foreign experts, technicians, and their families, often with reduced staffing-ratio requirements.

  • Streamlined Permits: The BOI can help coordinate and expedite various permits and licenses required from other government agencies.

Who is Eligible?

BOI promotion is specifically designed to attract businesses that bring innovation, technology, and high-value services to Thailand. Key promoted sectors include:

  • Digital Services: AI, Data Centers, Cloud Services, and Software Development

  • Advanced Manufacturing: Electric Vehicles (EVs) and their supply chain, electronics, and robotics

  • Medical & Healthcare: Medical device manufacturing and advanced wellness tourism

  • Green & Bio-Industries: Renewable energy, waste treatment, and advanced agriculture

  • Research & Development (R&D)

The Application Process: A Summary

While the benefits are substantial, the application is a detailed legal and business undertaking. A typical promotion is secured through the following steps:

  1. Eligibility & Structuring: We first analyze your business plan to confirm it aligns with a promoted activity and advise on the optimal corporate structure.

  2. Application Dossier: We prepare and submit a comprehensive application, which includes your business plan, financial models, technology descriptions, and human resource plans.

  3. BOI Hearing: We prepare you for the interview and Q&A session with BOI officials, where you will present the merits of your project.

  4. Approval & Certificate: Upon approval, the BOI issues a Promotion Certificate outlining your specific rights and conditions.

  5. Implementation & Compliance: We assist with the company setup and ensure you meet all ongoing compliance requirements (e.g., milestone reporting) to maintain your promoted status.

Legal Unit’s Services

Navigating the BOI process requires precise legal and business planning. Our service is designed to manage the entire lifecycle of your application, from strategy to compliance. Our deliverables include:

  • Initial Eligibility Assessment & Memo

  • Complete Application Pack & Business Plan Review

  • Interview Coaching & Representation

  • Post-Approval Implementation Checklist

  • Long-Term Compliance Calendar & Support

The Foreign Business License (FBL): The Path for Non-BOI Businesses

What if your business—such as consulting, a restaurant, or a retail operation—is not eligible for BOI promotion, but you still require majority foreign ownership?

The primary legal pathway in this scenario is the Foreign Business License (FBL).

This is the official permit issued by the Department of Business Development (DBD) that allows a foreign-majority-owned company to engage in activities restricted under List 3 of the Foreign Business Act.

However, unlike an automatic registration, the FBL is a discretionary license that must be applied for and approved by a government committee.

How to Qualify: What Examiners Look For

Approval for an FBL is not guaranteed. The committee evaluates applications based on a "net benefit" to Thailand. Your application must provide a compelling case demonstrating:

  • Economic & Social Contribution: A clear plan for job creation, contribution to the local economy, and other positive impacts.

  • Technology Transfer & Innovation: The ability to transfer valuable technology, specialized skills, or new management techniques to Thai employees.

  • Capitalization & Financials: A detailed, realistic business plan and proof of sufficient capitalization (minimum THB 3 million for most List 3 businesses).

  • Necessity & Capability: A strong justification for why a foreign-owned company is necessary to perform this activity, backed by your company's proven experience.

  • Public Interest: Evidence that your business will not negatively impact public order, consumer safety, or existing local enterprises in a protected field.

The Process & Realistic Timeline

Obtaining an FBL is a detailed, multi-step process.

  1. Pre-Assessment: We provide a frank analysis of your eligibility and the likelihood of success before you commit.

  2. Application Dossier: We prepare the comprehensive application, business plan, and all required supporting documents.

  3. Submission & Committee Review: The application is submitted to the DBD and forwarded to the Foreign Business Committee for consideration.

  4. Clarifications: We manage all requests for additional information or clarification from the officials.

  5. Decision & Issuance: Upon approval, the license is issued, and your business can legally operate.

A note on timing: While the law specifies a 60-day consideration period for the committee, the entire end-to-end process is longer. Based on recent data, applicants should plan for a total timeline of 3 to 6 months from submission to a final decision.

Transparent Pricing & Engagement Models

We believe in clear, transparent, and fair pricing. Because every business has unique needs, our fees are tailored to your specific situation and complexity.

After our initial consultation, we will provide you with a detailed proposal for the services you require.

Below are our most common service packages.

Starter Incorporation Pack

Our foundational package is designed to get your business legally established and operational as quickly and efficiently as possible.

  • Company Registration (Thai Limited Company)

  • VAT & Corporate Tax Registration

  • Assistance with Opening a Corporate Bank Account

  • Initial Guidance on Work Permit & Visa Requirements

BOI Full-Stack Application

A comprehensive, end-to-end service that manages the entire Board of Investment promotion process, from initial strategy to final implementation.

  • Eligibility: In-depth assessment of your business plan to confirm eligibility and identify the best incentives.

  • Application: Preparation of the complete application dossier, business plan, and financial projections.

  • Approval: Management of all communications and the official hearing with BOI officials.

  • Implementation: Assistance with post-approval company setup and meeting all BOI conditions.

Foreign Business License (FBL) / Treaty of Amity Application

A specialized service focused on securing 100% foreign ownership for businesses that do not qualify for BOI.

  • Strategy: Deep-dive analysis of your business to build the strongest possible legal case for the committee.

  • Filing: Meticulous preparation and submission of the complex legal application.

  • Decision: Proactive management of all government communications and requests for information until a final decision is rendered.

Monthly Legal / Compliance Retainer

Our "peace of mind" package ensures your business remains 100% compliant with all local regulations, allowing you to focus on growth. This service is governed by a clear Service Level Agreement (SLA).

  • Monthly Accounting & Bookkeeping

  • Tax Filings (VAT, Withholding Tax, etc.)

  • Payroll & Social Security Management

  • Corporate Secretarial Services (e.g., preparing for Annual General Meetings)

Get Your Custom Quote

To receive a detailed proposal for any of these services, please contact us to schedule a free session, no-obligation consultation. We will be happy to learn about your business and tailor a solution for you.

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