Thailand is having a moment. While everyone fixates on Singapore and Hong Kong, savvy entrepreneurs are quietly building empires in Bangkok and Phuket. This Southeast Asian powerhouse offers a vibrant tech ecosystem, a thriving tourism sector, and strategic access to the entire ASEAN market.
But here is what most guides won’t tell you upfront: achieving 100% foreign ownership in Thailand isn’t automatic. It requires navigating a licensing landscape that can either fast-track your success or leave you stuck in regulatory limbo for over a year.
The good news? Once you understand the system, Thailand becomes an attractive market in the region for foreign entrepreneurs. Let’s break down two of the typical pathways to foreign ownership, what actually matters in company setup, and the timelines you should genuinely plan for.
Two routes to 100% foreign ownership
Most entrepreneurs become confused about foreign ownership in Thailand because they are unaware of the two distinct routes, each with completely different advantages. You can pursue Board of Investment (BOI) approval or obtain a Foreign Business License (FBL). Both deliver 100% foreign ownership, but the requirements and benefits couldn’t be more different.
The BOI route
The Board of Investment path is Thailand’s red carpet for substantial foreign ventures. You get 100% ownership plus tax holidays that can extend up to eight years, import duty exemptions on machinery, and enhanced operational flexibility that smaller companies don’t enjoy.
The catch? You need a minimum paid-up capital of 10 million baht (approximately $280,000), must hire at least 10 Thai employees, and the approval process takes between seven and twelve months. BOI specifically targets priority sectors like technology development, renewable energy, advanced manufacturing, and automation.
Here’s a lesser-known advantage: BOI-approved companies can own land in Thailand, a privilege typically restricted to foreign entities. If your business model involves significant physical infrastructure, this alone can justify the BOI route.
The FBL alternative
The Foreign Business License offers an entirely different value proposition. You get 100% foreign ownership without tax incentives or extensive hiring mandates, making it ideal for service businesses, digital ventures, and operations that don’t require massive upfront investment.
The capital requirement drops to just 3 million baht (approximately $85,000), and processing typically takes four to seven months, although the official timeline extends to ten months. For consulting firms, digital agencies, trading companies, and professional services, FBL provides faster market entry at a fraction of the cost.
What most guides miss is that FBL applications have become increasingly streamlined in 2024 and 2025. The Department of Business Development has digitised significant portions of the process, reducing the documentation burden compared to even two years ago.
What Thai authorities evaluate
Regardless of which route you choose, Thai authorities scrutinise specific elements of your application. Understanding what matters helps you prepare properly, rather than scrambling in the middle of the process.
Thai authorities want a comprehensive three-year business plan with detailed financial projections, including itemised expenses, expected revenue streams, and specific recruitment plans. They’re assessing whether you’ll genuinely contribute to Thailand’s economy or extract value from it.
The key insight? Your business shouldn’t directly compete with established local companies in protected sectors. Thailand maintains a “Reserved List” of activities exclusively for Thai nationals. Your venture needs to either serve a different market segment, introduce new technology, or demonstrate a clear economic contribution beyond what local businesses currently provide.
Physical presence requirements
You need actual office space in Thailand, not just a virtual address. A business centre works perfectly fine, and in Bangkok, expect around 17,000 baht monthly (roughly $475) for suitable space in areas like Sukhumvit or Silom.
Authorities now verify physical presence more strictly than before. They may conduct site visits during the application process, so your office needs to be functional and accessible, not just a mailing address.
Setting up your Thai limited company
Every foreign-owned business operates through a Thai private limited company (LLC), regardless of your ownership structure. The setup process has specific requirements that trip up even experienced entrepreneurs.
The Director’s dilemma
Thai LLCs require a minimum of two shareholders and at least one director. In Thailand, several day-to-day processes still require physical presence; therefore, for practical reasons, at least one of the directors should reside in Thailand at all times. To fulfil this, our foreign directors can apply for a work permit or hire a local or resident director in their place.
The banking process
Opening corporate bank accounts in Thailand is quicker than in other countries in Southeast Asia. Bangkok Bank and Kasikorn Bank are well-suited for foreign-owned businesses.
Your foreign bank signatory needs a work permit to open the account. As always, there’s a workaround. An in-person meeting is usually required for the one-day process of opening a bank account. The account opens immediately, but online banking access takes one to two weeks to activate. Plan accordingly.
The work permit process
Here’s what catches entrepreneurs off guard: you cannot apply for a foreign work permit until your company has hired four Thai employees who’ve been on payroll for three months. Your local director (if any) counts toward this minimum, but you still need three additional employees with documented salary payments.
The work permit process involves two distinct stages. First, obtain an e-visa from a Thai embassy outside Thailand (you can’t do this while in Thailand on a tourist visa). Second, enter Thailand to convert your e-visa to a Thai work permit. The total timeline runs approximately two months.
Once granted, you don’t need to travel constantly to maintain your status, although authorities expect you to be present in Thailand at least annually. The work permit typically links to your company, meaning changing employers requires a new application.
How C2Z Advisory can assist businesses expanding into Thailand
Setting up a company in Thailand without local expertise can transform an eight-month process into an eighteen-month ordeal, filled with rejected applications, miscommunication with authorities, and costly restructuring.
At C2Z Advisory, we manage the entire incorporation process from entity selection to bank account opening. We guide you through the BOI versus FBL assessment based on your specific business model, handle visa and work permit applications with Thai immigration, and structure your shareholding for maximum operational flexibility.
We help you avoid common pitfalls that delay timelines, stay ahead of regulatory changes that most online guides overlook, and build a business structure that supports ambitious growth beyond minimum compliance.