Property Education · Visas & Business

Starting a business in Thailand as a foreigner: the company, the 51/49 rule, and the legal routes to majority ownership.

The default vehicle is a Thai Limited Company, and for most activities the Foreign Business Act caps foreign ownership at 49% — a Thai majority of 51% is required. But that’s the starting point, not the ceiling: a Foreign Business License, BOI promotion, or the US-Thai Amity Treaty can lawfully take you to majority or 100% foreign ownership. Here’s the plain-English version — the structures, the capital, how registration ties to your Non-B visa and work permit, realistic costs and timeline, and the nominee-shareholder trap to avoid. Unbiased, never paid placement.

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By Kirby Scofield
Founder of BAANLYY · International real estate broker, investor & relocation specialist
Last updated 6 July 2026 · Last reviewed 1 July 2026

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The one-line version

Most foreigners register a Thai Limited Company, where the default rule caps them at 49% with a 51% Thai majority. To own more, use a lawful route — Foreign Business License, BOI promotion, or the Amity Treaty (Americans, up to 100%). Plan 2–3M THB capital per foreign work permit, build the 4-Thai-staff payroll, then sponsor your own Non-B visa and work permit. Never use fake Thai nominee shareholders — it’s illegal.

Living Summary

Starting a Business in Thailand — living summary

Editorial analysis compiled and periodically refreshed by BAANLYY’s research team — not a live data feed.

Analysis last reviewed 2026-07-06.

Growth Trajectory

How Foreign Business Registration Has Changed

  1. Jul 2025
    Top-tier provincial minimum wage rises to 400 THB/day
    A nationwide wage revision effective 1 July 2025 sets Bangkok, Phuket, Chonburi, Rayong and Koh Samui (Surat Thani) at the top 400 THB daily rate, relevant to the four-Thai-staff-per-foreigner sponsorship math on this page.
  2. Jan 2026
    DBD Biz Regist launches; BOI minimum salary rule begins
    Online-only registration begins phasing in for new partnerships and limited companies via the DBD's Biz Regist platform, while BOI Announcement Por.8/2568 introduces mandatory minimum salary thresholds for BOI-promoted work permits.
  3. Apr 2026
    DBD Order No. 1/2569 tightens foreign-participation filings
    Registrars must now obtain a Written Confirmation of Investment and three months of Thai shareholders' bank statements evidencing real capital, backed by a new DBD–Central Investigation Bureau data-sharing MOU targeting nominee structures.
  4. 2026
    About 10 activities delisted from the FBA restricted lists
    Non-facility telecom services, treasury-centre business, software development and intra-group management services are removed from Lists 2/3, allowing 100% foreign ownership without an FBL; a narrower professional-services delisting (legal, accounting, consultancy for affiliated companies only) is drafted.
  5. Jul 2026
    DBD Biz Regist becomes the sole registration channel
    As of 1 July 2026, new partnership and private limited company registrations run through a single 100% online channel — paper-based and walk-in filing is fully retired.
01

What “starting a business” legally means here

In Thailand, doing business as a foreigner is governed primarily by the Foreign Business Act (FBA), which defines who counts as “foreign” (broadly, a company with 50%+ foreign shareholding) and which activities are restricted to them. The practical takeaway is that your business activity — not your nationality alone — decides what structure you must use and how much you can own. A restaurant, a consultancy, a software firm, a manufacturer and an export trader can all face very different ownership rules. So the first step is never “register a company”; it’s “classify the activity,” then pick the structure that lawfully fits. Get that order wrong and you either over-pay for protection you don’t need or build something that can’t legally operate.

02

The Thai Limited Company: the default vehicle

The workhorse structure is the Thai Limited Company (Co., Ltd.) — the equivalent of a private limited company, with shareholders, directors and limited liability. It can be registered relatively quickly, suits almost any trade or service business, and is what the vast majority of foreign-involved ventures use. A company needs a minimum of two or three shareholders (the statutory minimum has been reduced over time, so confirm the current figure), at least one director, a registered office address, and a memorandum of association filed with the Department of Business Development (DBD) at the Ministry of Commerce. Most foreigners hold their permitted share, take a director role, and combine it with a work permit to run the company day-to-day. Other vehicles exist — representative offices, branch offices, partnerships — but they’re narrower in use.

03

The 51/49 foreign ownership rule

The ownership maths most people miss
  • Default cap — foreigners may hold up to 49%; Thai nationals must hold at least 51% in a restricted-activity company.
  • It’s a floor, not a wall — full or majority foreign ownership is available through an FBL, BOI, or the Amity Treaty.
  • Some activities are exempt — manufacturing and export, and BOI-promoted sectors, are treated far more liberally.
  • Nominees are illegal — you cannot lawfully use proxy Thai shareholders to hide foreign control of the 51%.

The 51/49 rule scares people more than it should. For genuinely Thai-partnered ventures it’s fine; for everything else there is almost always a legitimate path to the ownership you need — you just have to use the right one.

04

Foreign Business License & the restricted lists

When you need majority-foreign ownership in a restricted activity, the formal permission is a Foreign Business License (FBL), issued by the Ministry of Commerce. Restricted activities sit in three schedules: List 1 is closed to foreigners entirely (e.g. land trading, newspapers, farming); List 2 is allowed only with Cabinet-level approval (certain natural resources, security-sensitive work); and List 3 — which captures most service businesses — is open to foreigners who obtain an FBL or qualify for an exemption. The FBL review weighs the benefit to Thailand, technology and knowledge transfer, and Thai employment, and can take several months with no guarantee of approval. For that reason many foreigners aiming at full ownership go the BOI or Amity route instead, which can deliver the same result faster.

05

BOI promotion & the US-Thai Amity Treaty: the exceptions

Two routes let foreigners skip the 49% cap. BOI promotion — the Board of Investment promotes targeted industries (tech, manufacturing, regional HQs, certain services) and grants promoted companies major perks: up to 100% foreign ownership, tax holidays, relaxed work-permit ratios, and fast-tracked visas and permits through the One-Stop Service Center. If your business is in a promoted sector, BOI is often the single best structure. The US-Thai Amity Treaty — American citizens and US-majority companies can register for Amity Treaty protection, allowing up to 100% American ownership in most (not all) sectors, treating the company largely as if it were Thai for ownership purposes. Both routes are the lawful answer to “how do I own more than 49%?” — and both are far cleaner than any nominee scheme.

06

Capital requirements & the work-permit linkage

Two numbers govern most foreign setups. Capital: a Thai-majority company can register with modest capital, but you need 2 million THB of registered capital per foreign work permit you want to sponsor — 3 million THB if the company is majority-foreign under an FBL, and often halved if a foreign owner is married to a Thai national. Staffing: broadly four Thai employees on payroll (with social security) per foreigner sponsored. Crucially, owning shares does not let you work — to legally work in your own company you still need a Non-B visa plus a work permit, sponsored by the company once it meets the capital and headcount rules. So the real sequence is: register company → capitalise and staff it → sponsor your own Non-B and work permit. See the working in Thailand guide for the employment side.

07

Costs, steps & realistic timeline

A clean Thai Limited Company is usually a matter of weeks, not months, once paperwork is ready. The standard path:

Professional fees for a straightforward Thai-majority company commonly range from the low tens of thousands of baht into six figures depending on complexity; adding an FBL pushes the timeline to several months and the cost higher. Any single quoted figure is indicative only — shop and compare licensed firms. Budget the running costs realistically with the cost-of-living calculator.

08

The nominee trap & other mistakes

Don’t…
  • use fake Thai nominee shareholders to disguise foreign control — it’s illegal and prosecuted, with fines, jail and forced dissolution
  • assume owning shares lets you live or work here — you still need a Non-B visa and work permit
  • register a company purely to hold property — that’s exactly the structure authorities scrutinise
  • pick a structure before classifying the activity against the FBA lists
  • under-capitalise — too little registered capital blocks your work-permit sponsorship
  • rely on one law firm’s quote as the market — fees vary widely

The single biggest avoidable error is the nominee shortcut. If you need majority-foreign ownership, you almost certainly qualify for a lawful route — FBL, BOI or Amity — so use it. Structure for the ownership you’re genuinely entitled to and keep the paperwork real.

09

The housing & office side: where you'll base yourself

Running a Thai company usually means you’re here long-term on a renewable one-year stay — so rent like a resident, not a tourist. A standard 6–12 month lease on a condo near the BTS/MRT beats serviced apartments on cost, and landlords readily accept a Non-B/work-permit holder. You’ll also need a registered office address for the company and, if VAT-registered, a real workplace the labour office can map — many founders separate the registered office from their home. Whatever you choose, your address feeds TM30 and 90-day reporting, so keep the lease and house registration documents handy. If your goal is property rather than trade, read foreign condo ownership before forming any company.

Related reading: work permits in Thailand, working in Thailand, tax for expats, and the Visa Knowledge Center.

10

Frequently asked

Can a foreigner own a business in Thailand?Yes, but how much you can own depends on the activity. The default vehicle is a Thai Limited Company, and for most business activities the Foreign Business Act caps foreign ownership at 49% — a Thai majority (51%) is required. There are well-defined ways to legally own more or all of a business: obtaining a Foreign Business License (FBL), securing BOI (Board of Investment) promotion, or — for Americans — registering under the US-Thai Amity Treaty, which allows up to 100% American ownership in most sectors. Some activities are open to majority-foreign ownership outright, and manufacturing/export is treated more liberally. The right structure depends entirely on what your company will actually do, so map the activity to the rule before you register anything.
What is the 51/49 rule?The 51/49 rule is shorthand for the Foreign Business Act's default ownership limit: in a standard Thai Limited Company doing a 'restricted' activity, foreigners may hold up to 49% of the shares and Thai nationals must hold at least 51%. It exists to keep majority control of many service and trade businesses in Thai hands. The crucial point is that 51/49 is the DEFAULT, not the only option — if your activity needs full foreign ownership, you use a Foreign Business License, BOI promotion, or the Amity Treaty instead of trying to force a workaround. Using fake Thai 'nominee' shareholders to disguise foreign control of the 51% is illegal and carries serious penalties.
What is a Foreign Business License (FBL)?A Foreign Business License is the formal permission that lets a majority-foreign-owned company operate in an activity otherwise restricted under the Foreign Business Act. Restricted activities are grouped in three lists: List 1 (strictly prohibited to foreigners, e.g. land trading, media), List 2 (allowed only with Cabinet approval, e.g. certain resources and security-related work) and List 3 (most service businesses — allowed with an FBL or other exemption). Getting an FBL involves an application to the Ministry of Commerce and a review that weighs benefits to Thailand, technology transfer and employment; it can take several months and is not guaranteed. BOI promotion and the Amity Treaty are often faster routes to the same majority-foreign outcome.
How much registered capital do I need?It depends on the structure and whether foreigners will work in the company. A purely Thai-majority limited company can be registered with modest capital, but the practical figures most foreigners care about are: 2 million THB of registered (paid-up) capital per foreign work permit you want to sponsor, rising to 3 million THB if the company is majority-foreign-owned and operating under an FBL. If a foreign owner is married to a Thai national, the work-permit capital requirement is often halved. BOI-promoted companies follow the BOI's own capital rules. Capital can be paid in over time in many cases, but you must be able to evidence it, so plan the number around how many foreign staff and work permits you'll need.
How does company registration connect to my visa and work permit?Owning shares in a Thai company does NOT by itself give you the right to live or work in Thailand — those are separate permissions. To work in your own company you need a Non-Immigrant B visa and a work permit, and the company must meet the sponsorship rules: broadly four Thai employees on payroll per foreigner and 2 million THB capital per work permit (reductions apply for BOI firms and Thai-married owners). So the sequence is: register the company, build the required Thai payroll and capital, then sponsor your own Non-B and work permit. Many first-timers register a company and are surprised they still can't legally work in it until the employment paperwork is complete. See our work permits guide for the detail.
What does it cost and how long does it take?A straightforward Thai Limited Company can typically be registered in a few weeks once names, shareholders and documents are ready — company name reservation, drafting the memorandum of association, the statutory meeting, registration at the Ministry of Commerce (DBD), VAT/tax registration and opening a corporate bank account. Professional/legal fees for a clean Thai-majority company commonly run from the low tens of thousands of baht into six figures depending on complexity. Adding a Foreign Business License extends the timeline to several months and raises cost. BOI promotion has its own application cycle but then accelerates visas and work permits. Treat any single quoted figure as indicative — fees vary widely by law firm, structure and activity.
What is the nominee-shareholder trap?A nominee arrangement is using Thai individuals to hold the 51% on paper while the foreigner secretly controls the shares and profits. It is a common 'shortcut' that is explicitly illegal under the Foreign Business Act — authorities can and do investigate the source of Thai shareholders' funds, and penalties include fines, imprisonment and forced dissolution of the company. If you genuinely need majority-foreign ownership, the lawful routes are an FBL, BOI promotion or the Amity Treaty. The safe mindset: structure for the ownership you're actually entitled to, document real Thai shareholders' capital, and never paper over foreign control with proxies.
Should I register a company just to buy property?Usually no. Foreigners sometimes hear that a Thai company can 'own' land or a house, but registering a company purely to hold property you don't operate a real business from is exactly the nominee structure authorities scrutinise, and it carries legal and tax risk. For most foreigners the cleaner routes are direct freehold condo ownership (foreigners can own condos outright within the building's 49% foreign quota) or a registered long-lease — both covered in our ownership guides. Form a company to run a genuine business, not as a property-holding workaround. If property is the goal, start with the foreign condo ownership guide instead.
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Sources & References

Sources & References

Primary and official sources are cited above. Government rules, fees and procedures in Thailand change over time and vary by office; always confirm current requirements with the relevant authority before relying on them. BAANLYY never takes paid placement in editorial content.

General information only — not legal, tax, immigration or financial advice. Thailand’s Foreign Business Act, ownership caps, restricted-activity lists, capital and headcount rules, FBL/BOI/Amity procedures, fees and timelines change and are applied case by case by the Ministry of Commerce (DBD), the BOI and other authorities; confirm current details with the DBD, the BOI, an official Thai government source, or a licensed Thai lawyer before relying on anything here. BAANLYY never takes paid placement.