Question 1

What does the Foreign Business Act restrict?

Accepted Answer

The Foreign Business Act B.E. 2542 groups restricted activities into three lists. List One is closed to foreigners for special reasons, including newspapers, farming and trading in land. List Two concerns national security, arts and culture and needs Cabinet-level approval. List Three covers businesses in which Thai nationals are considered not yet ready to compete and captures most service activities; it requires a Foreign Business Licence from the Director-General of the Department of Business Development with the approval of the Foreign Business Committee. Ask our Thai corporate team to review your structure by phone, LINE or email before you file.

Question 2

Who counts as a foreigner under the Act?

Accepted Answer

Section 4 defines a foreigner as a natural person without Thai nationality, a juristic person registered abroad, or a juristic person registered in Thailand in which half or more of the capital shares are held by foreigners. The test looks at shareholding, not at the nationality of the directors. A company with forty-nine percent foreign shareholding is therefore not a foreigner — but if the Thai shares are held on a foreigner's behalf, section 36 applies and both the nominee and the foreigner face imprisonment of up to three years and a fine of 100,000 to 1,000,000 baht. Ask our Thai corporate team to review your structure by phone, LINE or email before you file.

Question 3

Can Americans own 100 percent of a Thai company?

Accepted Answer

In most sectors yes, under the Treaty of Amity and Economic Relations between Thailand and the United States of 1966, certified by the Department of Business Development on the strength of a nationality certification from the US Embassy. The treaty still reserves communications, transport, fiduciary functions, banking involving depository functions, exploitation of land or other natural resources, and domestic trade in indigenous agricultural products. Amity status does not by itself grant a work permit or land ownership, and it lapses if the American shareholding falls below the required level. Ask our Thai corporate team to review your structure by phone, LINE or email before you file.

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Foreign Business Act, FBL & the US-Thai Amity Treaty

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