Updated on Tuesday 20th September 2016
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A lot of foreign investors prefer to set up a company in Thailand owned in majority (more than 50% of the shares) by Thai shareholders because in this way, the business will be able to operate in certain sectors which are otherwise restricted to aliens. In order to register a business owned in majority by Thai shareholders, there is a smaller capital and paperwork which are required compared to setting up a foreign owned company. It is important to note also that a company owned in majority by Thai shareholders can acquire land in the country.
What are the obligations of the Thai shareholders?
The Thai shareholders or business partners have to abide by the Business Registration Rules at opening a business in Thailand which involves shares owned by a foreign investor. When doing so, they have to prove that they themselves are financing to hold the shares (including bank statements and other documentations).
Can Thai shareholders own less than 50% of the shares in a business?
In Thailand, there are certain business sectors in which a foreign investor is allowed to own the majority of the company’s shares. Our company formation advisors in Thailand can provide more details on this matter.
Conditions for opening a company with Thai shareholders
Opening a limited company in Thailand is a method used by foreign investors who wish to operate a business in the country, as the local legislation does not allow to own entirely a business as a private individual.
The limited company in Thailand must have at least three shareholders and a director. The Thai shareholders should own at least 51% of the company’s shares. With this type of company, though, the foreign investor can be the only director, this way being able to manage and run the business with the sole-decision power. A limited company does not need a Foreign business license in order to operate, which takes time and it quite expensive, allowing the foreigner to maintain the entire control over the Thai company and possessing the majority of voting rights and sole directorship.
Our company registration professionals in Thailand can assist you with the entire procedure of opening a company with Thai shareholders; please get in touch with us.