Step-by-Step Guide: Setting Up a 100% Foreign-Owned Company

A common misconception is that foreigners must have a Thai partner (holding 51%) to do business in Thailand. While this is the default under the Foreign Business Act (FBA) for service companies, exceptions exist that allow for 100% foreign ownership.

The 3 Golden Pathways

1. Board of Investment (BOI) Promotion

• Best for: Manufacturing, Tech, Digital Services, R&D.
• Benefit: 100% ownership + Tax Holidays + Land Ownership rights.
• Process: rigorous application (3-6 months).

2. Foreign Business License (FBL)

• Best for: Unique service businesses not competing with locals.
• Benefit: 100% ownership.
• Process: Ministry of Commerce approval (4-6 months, harder to get).

3. US-Thai Treaty of Amity

• Best for: American citizens and US-owned corporations.
• Benefit: 100% national treatment (same rights as Thai companies).
• Process: Certification via US Commercial Service + DBD registration (1-2 months).

The Risks of Nominees

Choosing to bypass these legitimate routes by using "fake" Thai shareholders is illegal. The Department of Business Development (DBD) has strict protocols to identify nominee structures, investigating the source of funds of Thai shareholders.

Recommendation: always start with a BOI feasibility study. It is the most secure and beneficial route for long-term investors.