Legal & Contracting in Thailand

Essentials guide · Source-checked research71% of statements checked against a source36 checked against an official source0 checked against a secondary sourceChecked 2026-10-193 held back until checked against an official source8 topics include AI-written statements, not source-checkedNot yet professionally reviewed

• Under the Foreign Business Act B.E. 2542 (1999), a company in which foreigners hold half or more of the shares is treated as a foreigner and may not carry on activities in the Act's three restricted lists without a Foreign Business Licence or certificate.

  List 1 activities are closed to foreigners; Lists 2 and 3 need permission. Many service activities fall under List 3.Thailand Board of Investment (BOI), unofficial translation · checked 2026-10-19

• A foreigner whose List Two or List Three business is promoted by the Board of Investment can obtain a Foreign Business Certificate for that business, which is one route to more than 49 percent foreign ownership.

  Applies only to the promoted activity and subject to BOI conditions; industrial estate and export permissions follow the same certificate route.Thailand Board of Investment (BOI), unofficial translation · checked 2026-10-19

• US investors can use the Treaty of Amity between Thailand and the United States as one of the routes to more than 49 percent foreign ownership.

  US investors only; the activities excluded from treaty protection were not confirmed.Thailand Board of Investment (BOI) · checked 2026-10-19

• A Thai private limited company can be formed by a minimum of two founders, who sign the memorandum of association before the company is registered.

  The memorandum is filed within 30 days of name approval and registration applied for within three months of the statutory meeting. Public limited companies follow separate legislation.Thailand Board of Investment (BOI) · checked 2026-10-19

• Under the Foreign Business Act, a foreign company's minimum capital may not be less than THB 2 million, or THB 3 million for businesses that need permission under the Act's lists.

  Ministerial regulations can set higher amounts; BOI-promoted companies and some activities follow different rules.Thailand Board of Investment (BOI), unofficial translation · checked 2026-10-19

• A foreign company can operate a representative office in Thailand with the permission of the Director-General of the Department of Business Development, and receipts from the head office are not treated as revenue for income tax.

  Representative offices do not earn income in Thailand; they still need a tax ID and must file returns.Thailand Board of Investment (BOI) · checked 2026-10-19

• The Trade Competition Act B.E. 2560 (2017) is enforced by the Trade Competition Commission (TCC), supported by an independent state agency, the Trade Competition Commission of Thailand (TCCT).

  Department of Trade Negotiations, Thailand (WTO Trade Policy Review report by Thailand) · checked 2026-10-19

• Mergers that may result in a monopoly or dominant position need approval before completion, and other mergers covered by the Act must be notified after completion.

  The prior-permission test refers to businesses with sales of THB 1,000 million or more; notification is due within seven days of the merger.Trade Competition Commission of Thailand (TCCT) · checked 2026-10-19

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