Thai company laws
Foreign business in Thailand
Most business activities in Thailand are prohibited or restricted for foreigners and fall within the scope of one or more laws or regulations which require approval (licensing) (e.g. a foreign business license under the Foreign Business Act) or permission by the Board of Investment. Foreigners who want to operate restricted businesses can in some cases have a foreign business license or permit granted in accordance with the Investment Promotion Act (Board of Investment of Thailand), the Foreign Business Act (Department of Business), a treaty or other laws. Companies granted permission can be 100% foreign owned and will operate in Thailand as a foreign company.
These companies do not have the problem of Thai nominee shareholders (they can be 100% foreign owned).
Nominee shareholding structures are used by foreigners who operate a restricted or prohibited business for foreigners through a majority Thai owned but foreign controlled Thai limited company. The nominee shareholding structure in a Thai company is commonly used by foreigners to circumvent the restrictions under the Foreign Business Act.
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