The advice from the Department of Business Development and Foreign Business Administration Bureau as follows;

Case 1:Thai Company means Thai hold the majority of shares from 51% or more.

Case 2:Foreign Company means foreigner hold the shares of larger than 49%.

In case foreigner want to set up the company with foreign shareholding ratio of larger than 49%, then the company is classified as the foreign company. Thus, you are required to concern whether your business activity is specified in the prohibit lists according to Foreign Business Act, B.E.2542 (1999) or not.

If your business activity (foreign company) is in the list ;

• List 1: To operate the business activities under list 1, the company is required to be Thai company only.
• List 2: see section 15 (Foreign Business Act, B.E.2542 (1999) about rule/regulation regarding to company’s shareholding ratio.
• List 3: The foreigner is able to hold the share up to 100%

Remark:Any foreign company who is willing to operate the business under list 2 or list 3 is required to obtain "Foreign Business License”.

For more information regarding to Foreign Business Act, B.E.2542 (1999). Please see documents as follows.

Applying for a permission to operate a business under the Foreign Business Act BE. 2542 (1999):https://www.dbd.go.th/dbdweb_en/download/article/article_20131219100443.pdf

For more information, please contact:

• Bureau of Foreign Business Administration at 02 547 4425
• e-mail: foreign@boi.go.th Or
• Tel. +66 2 547 4425-26
• Email: pavanah@dbd.go.th

Address:Department of Business Development,

Ministry of Commerce8th floor,

Bureau of Foreign Business Administration 44/100

• Nonthaburi 1 Road, BangkrasorA.Muang, Nonthaburi, 11000THAILAND
• Tel: +66 2 547 4419-20 or +66 2 547 4425-26

Source: Department of Business Development, Ministry of Commerce:www.dbd.go.th

Information as of September 2014