Date: August 12, 2026

Do I really need a Thai partner holding 51% of my company?

Not always. Whether you need a Thai majority shareholder depends on the type of business you want to operate. Some businesses, such as manufacturing and export, can be 100% foreign owned, while others may qualify for BOI promotion or another exemption. However, many business activities are restricted under the Foreign Business Act, so a Thai partner will be needed.

What We See In Practice

WHAT CLIENTS ASK US

“I’ve been told I need a Thai partner to start a business in Thailand. Is that true?” We hear this question all the time. Foreign investors sometimes wrongly assume that every company in Thailand must be majority Thai owned. This isn’t the case. Some businesses can be 100% foreign owned due to their activities (manufacturing and export) not being restricted by the Foreign Business Act, while others may be eligible for a BOI promotion or a Foreign Business Licence. That said, many popular business activities are restricted under the Foreign Business Act, so a Thai partner may still be needed.

There is no rule that says every foreign owned business must have a Thai partner holding 51% of the company or at all. It all depends on the type of business you plan to operate. Some activities, including manufacturing and export, are unrestricted and can be 100% foreign owned. Others are restricted under Thailand’s Foreign Business Act, but full foreign ownership may still be possible through BOI promotion, a Foreign Business Licence, or, for eligible US citizens and businesses, the US-Thailand Treaty of Amity.

If your business does need a Thai majority shareholder, it is important that the ownership reflects what is actually happening in the business. The Thai authorities have stepped up enforcement against nominee shareholder arrangements, so using Thai shareholders simply to meet the legal requirements and avoid the restrictions of the Foreign Business Act can lead to serious problems. Before setting up your company, it is worth checking whether your business can be 100% foreign owned and, if not, whether it qualifies for BOI promotion.

Author: Vincent Birot

Vincent Birot is a French-trained international business lawyer based in Bangkok. He holds a Master’s degree in International Business Law from La Sorbonne and an LL.M in International Commercial Law from the University of Exeter (UK), and has passed the Paris Bar examination. He is the Founder of Belaws, a one-stop platform for legal and corporate matters, facilitating access to trusted legal and business professionals who deliver compliant, practical solutions aligned with local laws and on-the-ground realities. He has advised foreign investors for over 10 years on corporate structuring, BOI promotion, cross-border tax, and regulatory compliance in Thailand. He previously served as Vice President of the Franco-Thai Chamber of Commerce and is a founding member of French Tech Bangkok.