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1. Title
Registration Of a Company in Thailand

2. Foreigners operating a business in Thailand
• When it comes to operate a business
as a foreigner in Thailand, approval
must be taken as per the Foreign
Business Act B.E. 2542 must be
complied with.
• Foreigners can be granted a foreign
business license for to perform or
operate certain business categories

3. Businesses Are Divided Into Three Categories As Per The
Foreign Business Act in Thailand
• Type 1: Businesses listed in type 1 are completely rectricted to foreigners
unless there is an exemption contained in a special law or treaty.
• Type 2: Businesses were granted to apply for a special business license and
to continue operation. Foreigners, however, are not permitted to start new
businesses listed in this category unless and unless they obtain special
permission from the Minister with the approval from Cabinet.
• Type 3 : Businesses that are treated in a manner similar to Type 2 except
that the power to grant an Alien Business License to foreigners who wish to
start a new business is vested with the Director General and a committee.

4. Thai Company Ownership Issue
• As per the Thai laws is the company must be "majority owned" by Thais, in
terms of shareholders.
• This means that the company can be no more that 49% foreign owned.
• Sometimes, it is a maximum of 39% foreign ownership, for practical
reasons. In most cases it's 49% foreign owned.
• A Thai company is not subject to the Alien Business Act and when a partly
foreign owned Thai company is structured as majority Thai owned it is
deemed that the business is operated by a Thai entity (not foreign/alien) and
the company will in principle be regarded as a Thai company and therefore,
as a Thai juristic person, the company will not be restricted by the Foreign
Business Act.

5. Restricted Things For Foreign Shareholders
• The use of preference shares issued to foreigners is allowed under the
current Foreign Business Act, however the use of nominees by foreigners is
always illegal.
• The government announced plans to close this loophole by amending the
Foreign Business Act.
• The amendments would mean that Thai companies (i.e. majority Thai
owned) controlled by foreigners would be deemed foreign companies and
must have a foreign business license or would need to restructure and limit
foreign control in the Thai company.
• The new law would not work retrospective but would affect existing
companies as under the Civil and Commercial Code company directors
must rotate yearly and must be re-elected. Under the new law, the company
would make itself foreign by re-electing a foreigner as managing director.

6. Getting In Touch With Us
• Lawyer at www.konradlegal.com is available to help you at
each step from starting a business to all the formalites of
running your business smoothly.
• Contact Us : +66 2626-0266
• Link Us at : https://www.facebook.com/konradLegalCompanyLtd
• Follow Us : at https://twitter.com/Konrad_Legal
• Rate Us at : https://plus.google.com/101256442438883405384/posts

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