What
types of business entities may be registered in Thailand?
Businesses can be registered as sole proprietorships,
limited and unlimited partnerships, limited companies,
public companies, branch offices, or representative and
regional offices.
What
is the most common type of business designation for foreign
ownership?
A Private Limited Company is the most frequently registered
type of business.
Can
foreigners hold 100% ownership of a business in Thailand?
The Foreign Business Act 1999, formerly known as The Alien
Business Law, restricts business activity of non-Thai
"aliens" by classifying businesses into three
categories: Businesses in list one are generally closed
to foreigners. Businesses in lists two and three generally
require an Alien Business License for a foreigner to own
and operate them.
Is
it ever possible for foreigners to own other types of
businesses?
The Board of Investment (BOI) has the authority to grant
promotional privileges to foreign businesses so that they
may engage in otherwise prohibited commercial ventures.
Similarly, foreigners who have been granted permission
by the Thai Government or by agreement with the Thai and
a foreign government may be exempt from the Alien Business
Law. Also it is possible for certain otherwise restricted
businesses to obtain an Alien Business License from the
Ministry of Commerce. In addition, American Citizens are
exempt from many restrictions as a result of theU.S.-Thai
Treaty of Amity and Economic Relations of 1966 ("Amity
Treaty").
What
is the Amity Treaty?
The Amity Treaty applies to American citizens and provides
certain exemptions from the Foreign Business Act allowing
American individuals special rights in doing business
in Thailand. For American companies this means that they
may retain a majority shareholding in otherwise restricted
businesses registered in Thailand. Businesses registering
through the Treaty of Amity do not have to receive approval
from the BOI but it may be advisable that they do so in
order to attain some of the other benefits available from
the BOI. Nonetheless, certain businesses, such as those
in List One and the liberal professions, are still prohibited
even to American companies. Read more about the Amity Treaty.
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