Finding a Thai Shareholder: Do's and Don'ts

If your business doesn't qualify for BOI or Treaty of Amity, you'll need Thai shareholders for the 51% majority. Here's how to do it right.

 

Types of Thai Shareholders

1. Spouse or Family

Pros: Trust, aligned interests Cons: Personal relationship complications, divorce risk

 

2. Professional Business Partner

Pros: Brings local knowledge, networks Cons: Partnership disputes, profit-sharing

 

3. Thai Employee

Pros: Aligned with company success Cons: Employment/ownership conflicts

 

4. Professional Investor

Pros: Clear business terms, professional relationship Cons: Expensive (typically want 15-25% of profits)

 

Due Diligence Checklist

Before committing to any Thai shareholder:

✅ Criminal background check (Thailand Crime Bureau) ✅ Credit history verification ✅ Previous business experience review ✅ Tax compliance confirmation ✅ Reference checks ✅ Alignment on business vision

 

Red Flags to Avoid

🚩 Unwilling to provide documents 🚩 Requests advance payments 🚩 No stable address or contact 🚩 Vague about past experience 🚩 Pressures for quick decisions 🚩 Offers to "handle everything" 🚩 History of business failures

 

Critical Reminder

Real shareholders, not nominees. Your Thai shareholders must have:

• Real capital contribution
• Genuine involvement in decisions
• Actual profit participation

Otherwise, you're creating a nominee arrangement—which is illegal.

 

Better Alternative

If finding the right Thai partner is challenging, consider whether BOI promotion might eliminate the need entirely.

 

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Related Service: Company Registration & Legal Services — We help you find and vet legitimate Thai partners.