3 Things Every Foreign Investor Gets Wrong in Thailand

After helping hundreds of foreign investors establish businesses in Thailand, we've seen the same mistakes repeated. Here are the three most costly errors you can avoid.

Mistake #1: Assuming 100% Ownership is Impossible

Many foreigners hear about the "49% rule" and assume they can never fully own a Thai company. This is false.

Several legal pathways exist for 100% foreign ownership:

• BOI Promotion (most common for tech/digital)
• Treaty of Amity (for US citizens)
• Foreign Business License (for specific activities)
• Export companies (80%+ exports)

The key is understanding which path fits your business.

Mistake #2: Using Nominee Shareholders

Some investors try to "work around" the rules by using Thai nominees who hold shares on their behalf. This is:

• Illegal under the Foreign Business Act
• Actively prosecuted (46,000+ companies under investigation)
• Grounds for deportation and asset seizure

The penalties are severe and enforcement is increasing every year.

Mistake #3: Ignoring the 4:1 Ratio

For work permits, non-BOI companies must hire 4 Thai employees per 1 foreigner. Many entrepreneurs don't budget for this, leading to:

• Delayed work permit approvals
• Rushed, poor-quality hires
• Cash flow problems

The Solution

Plan properly before you start. Understand the rules, choose the right structure, and build compliance into your business model from day one.

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Want to start right? Schedule a consultation with our legal team.