Starting a Business - Thailand

Under the Foreign Business Act, any entity where 50% or more of shares are held by non-Thais is classified as 'foreign' and restricted to 49% equity in List 2 and List 3 sectors. Full foreign ownership in restricted sectors requires a Foreign Business Licence (List 3) or Cabinet approval (List 2), both of which are complex and not guaranteed.

List 1 (e.g., land trading, domestic broadcasting) is wholly closed to foreigners. List 2 (national security/natural resources) requires Cabinet approval plus a Foreign Business Licence. List 3 (e.g., retail, accounting, legal services) requires a Foreign Business Licence only. Many common service sectors fall under List 3.

From 1 January 2026, all private limited company and partnership registrations must be submitted exclusively through the DBD Biz Regist online platform; physical filings are no longer accepted. Foreign shareholders and directors can now complete the entire process remotely using electronic signatures via the DBD e-Service portal.

Effective 1 January 2026, Thai shareholders in companies with foreign participation must produce three months of bank statements proving that funds withdrawn match the exact amount and date of their share subscription payment. This measure targets nominee arrangements and adds due-diligence burden to formation.

There is no statutory minimum for a standard Thai private limited company, but the Foreign Business Act mandates at least THB 2 million paid-up capital for businesses requiring a Foreign Business Licence, and at least THB 3 million for certain special-permission activities. Separately, THB 2 million registered capital is required per foreign work permit holder.

The Cabinet approved FBA amendment in principle on 22 April 2025, and on 12 May 2026 approved draft instruments to remove Foreign Business Licence requirements for nine business categories. The DBD confirmed ten candidate sectors at a seminar on 29 January 2026. Full legislative implementation is expected mid-to-late 2026; until enacted, existing restrictions remain in force.