Content Guide for this page

#1 - What is FBL?

#2 - Businesses that can have majortiy Foreign Ownership and is exempted from applying for FBL

#3 - Businesses that MAY have majority Foreign Ownership if it is able to obtain FBL

#4 - Overview of FBL Application process and the Requirements

#5 - Post-Licensing (FBL) Compliance

#6 - Benefits of FBL and Alternative ways to have 100% Foreign Ownership of a Business in Thailand

What is a Foreign Business License (FBL)

Foreign Business License in Thailand (FBL) allows foreign investors to own the 100% of shares of a Thai Limited Company, in exception of usual law imposing that the company must have at least 51% Thai shareholders. If your company can obtain a FBL, it means that your company can be majority owned by foreigner.

Businesses that may be majority owned by Foreigner or Foreign entity without FBL


Category 1.

Securities Business and Other Businesses Under the Law on Securities and Securities Exchange


  • Securities trading
  • Acting as an investment or financial consultant
  • Mutual or private fund management
  • Granting loans for a securities business
  • Acting as a private fund custodian

    • Category 2.

    Derivatives Business Under the Law on Derivatives


  • Acting as a derivatives dealer, advisor, or fund manager

    • Category 3.

    Acting as a Trustee Under the Law on Trust for Transactions in the Capital Market


    Category 4.

    Financial Institution Business


  • Commercial banking business
  • Bank representative office service business
  • Financial institution agent
  • Acting as a derivatives dealer, advisor, or fund manager
  • Purchase or assignment of loan debts
  • Acting as a derivatives dealer, advisor, or fund manager
  • Debt collection
  • Hire purchase and leasing

    • Category 5.

    Life Insurance Business


  • Still subject to the permission under the Life Insurance Act

    • Category 6.

    Non-Life Insurance Business


  • Still subject to the permission under the Non-Life Insurance Act

    • Category 7.

    Asset Management Business


  • Purchase or acceptance of transfer of non-performing assets from a financial institution
  • Management service of non-performing assets
  • Consulting service for debtors, financial institutions, or financial business providers in debt restructuring

    • Category 8.

    Representative Office of Foreign Juristic Person for International Trading Service

    Category 9.

    Regional Office of Foreign Juristic Person for International Trading Service

    Category 10.

    Service Business to Which a Government Agency Under the Law on Budgetary Procedures Is a Party

    Category 11.

    Service Business to Which a State Enterprise Under the Law on Budgetary Procedures Is a Party

    Category 12.

    Service Businesses Provided to Affiliated Companies


  • Providing loans to affiliates in Thailand
  • Renting out office space, including public utilities
  • Providing consultation services relating to: Administrative management, Marketing, Human resources, Information technology


    • Businesses that MAY BE GRANTED FBL therefore foreigner can have majority stake in the company

  • Rice milling and production of flour from rice and economic plants;
  • Fishery only in respect of the hatching and raising of aquatic animals;
  • Forestry from a grown forest;
  • Production of plywood, veneer wood, chipboards or hardboards;
  • Production of lime;
  • Provision of accounting services;
  • Provision of legal services;
  • Provision of architectural services;
  • Provision of engineering services;

  • Construction, with the exception of:
    - - Construction of structures for delivery of infrastructure public services in the sphere of public utilities or transportation requiring the use of special apparatuses, machines, technology or expertise, with the minimum capital of five hundred million baht or upwards from foreigners;
    - - Construction of other types as prescribed in the Ministerial Regulation

  • Brokerage or agency businesses, with the exception of:
    - - being a broker or an agent in the sale or purchase of securities or in services related to futures trading of agricultural commodities or financing instruments or securities;
    - - being a broker or an agent in the sale, purchase or procurement of goods or services necessary for the production or the provision of services amongst affiliated enterprises;
    - - being a broker or an agent in the sale or purchase, procurement, distribution or acquisition of domestic and foreign markets for the distribution of domestically manufactured or imported goods, which is in character the operation of international trade, with the minimum capital of one hundred million baht or upwards from foreigners
    - - being a broker or an agent of other types as prescribed in the Ministerial Regulation

  • Sale by auction, with the exception of: - - sale by auction which, in character, involves international bidding of items other than antiques, objects of antiquity or artistic objects that are artistic works or handicrafts or objects of antiquity of Thailand or of historical value of the country;
    - - sales by auction of other types as prescribed in the Ministerial Regulation 20


  • Internal trade related to traditional agricultural products or produce not yet prohibited by law;
  • Retail sale of goods of all types with the total minimum capital in the amount lower than one hundred million Baht or with the minimum capital of each store in the amount lower than twenty million baht;
  • Wholesale of all types with the minimum capital of each store in the amount lower than one hundred million baht;
  • Advertising business;
  • Hotel business, with the exception of the hotel management service;
  • Guided touring;
  • Sale of food and beverages;
  • Cultivation, propagation or development of plant varieties;
  • Other service businesses, with the exception of service businesses as prescribed in the Ministerial Regulation.

    • Businesses that Foreigner CANNOT have majority stake in it

  • The press, radio broadcasting station or radio and television station business;
  • Rice farming, plantation or crop growing;
  • Livestock farming;
  • Forestry and timber processing from a natural forest;
  • Fishery, only in respect of the catchment of aquatic animals in Thai waters and specific economic zones of Thailand;
  • Extraction of Thai medicinal herbs;
  • Trading and auction sale objects or objects of the historical value of Thailand;
  • Making or casting Buddha images and monk alms-bowls; and
  • Land trading.

    • Overview of the entire process to get the Foreign Business License in Thailand

  • Application Preparation: Compile all necessary documents, including the business plan, company registration, and financial statements.
  • Submission: Submit the application to the Department of Business Development (DBD) at the Ministry of Commerce.
  • Review by the Committee: The application is reviewed by the Foreign Business Committee, which evaluates the economic and social impact of the proposed business.
  • Additional Information / Appeal: The Committee may request additional information or documents to support the application.
  • Decision: The Committee makes a decision based on the provided information. If approved, the FBL is issued.
  • Notification: The applicant is notified of the decision and must pay the required fees to obtain the license.

    • Requirements for a Foreign Company Applying for FBL

  • Minimum Capital: The company must have a minimum registered capital of 2 million THB, or 3 million THB for certain restricted businesses. This ensures the company’s financial stability and commitment to long-term operations in Thailand. This money must be brought from overseas.
  • Transfer of “Know-How”: The company must demonstrate plans for transferring technology and knowledge to Thailand. This helps enhance local capabilities and promotes technological advancement within the country.
  • Advantage for Thailand: The business must show clear benefits to the Thai economy, such as job creation, technological innovation, and contributions to the local industry. This requirement ensures that foreign businesses positively impact Thailand’s economic development.
  • Employment of Foreign Staff: Every non-Thai employee must obtain a work permit to work legally in Thailand. Generally, the ratio between Thai and foreign employees must be 4:1, promoting local employment and ensuring that foreign businesses contribute to the development of the Thai workforce.
  • No Effect to Other Thai Companies: The foreign business must not negatively impact existing Thai companies. This ensures fair competition and protects local businesses from being adversely affected by foreign enterprises.

    • Key Considerations when preparing FBL Applications

  • National Security and Public Order: The business should not pose any threat to Thailand’s national security or public
    • order. This is particularly important for businesses involved in sectors related to defense, critical infrastructure, or public safety.
  • Economic and Social Contributions: The potential economic benefits of the business are carefully assessed. This includes job creation, contribution to GDP, and the development of local industries. Businesses that can demonstrate significant contributions to Thailand’s economic and social development are more likely to receive approval.
  • Technology Transfer and Innovation: The Thai government places a strong emphasis on technology transfer and the introduction of new skills and expertise. Applications that include plans for research and development (R&D), collaboration with local universities, or the training of Thai nationals are viewed favorably.
  • Environmental Impact and Sustainability: The environmental impact of the business is another critical factor. Businesses that engage in environmentally sustainable practices or contribute to the conservation of natural resources are preferred.
  • Cultural and Ethical Considerations: The business must respect and support Thailand’s cultural heritage, traditions, and social norms. Businesses that align with Thailand’s values and contribute positively to the cultural landscape are more likely to be approved.

    • Speak to a UnionSPACE representative to better understand FBL conditions
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      Post-Licensing Compliance: Ensuring Long-Term Success

    • Equity-to-Debt Ratio The FBL may stipulate a specific equity-to-debt ratio that the business must maintain. This ratio ensures the financial stability of the business and protects against excessive leverage.
    • Director Residency Requirements The license may require that a certain number of foreign directors reside in Thailand. This condition is intended to ensure that the business remains engaged with the local market and is responsive to Thai regulatory requirements.
    • Capital Maintenance Businesses are required to maintain the minimum capital specified in the FBL. This capital must remain within the country to ensure the business can meet its financial obligations.
    • Ongoing Reporting and Compliance Licensed businesses must regularly report to the Ministry of Commerce and other relevant authorities. These reports typically include financial statements, updates on business activities, and proof of compliance with FBL conditions.

    Penalties for Unobservance of FBL According to Chapter 36 of the FBL

  • Fines: Monetary fines ranging from 100,000 to 1,000,000 THB, depending on the severity of the violation.
  • Imprisonment: Imprisonment for a term not exceeding three years for serious violations.
  • Business Closure: Authorities may order the closure of the business if it continues to operate illegally.
  • Asset Seizure: Seizure of assets if the business fails to comply with the regulations.

    • How can UnionSPACE assist you to setup a Foreign Owned Company in Thailand?

    Speak with one of our Company Formation & FBL Expert

    Check out US Treaty of Amity Company

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    Explore BOI Promoted Companies

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    Unfortunately, we do not have fix price FBL Company Set Up package due to changing regulation and gov't fee. Please contact us for a No Obligation consultation and quote.

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    FAQ: on Living & Working in Thailand

    • Why so many foreigner fall in love in our country?

      Thai people are generally nice and kind and our food, proximity to many other countries and healthcare are the top reason why foreigner choose Thailand as their second home

    • Is Thailand a rewarding country to start a business?

      We definitely think so. Thailand has a strong domestic purchasing power and the high number of tourist arrivals can be a great addition to your business too

    • Is it true that 51% of my company has to be owned by a Thai person or entity?

      If you are referring to a normal Company Limited, yes, that is correct. There are exemption and other company structure that will allow the foreigner to own all the company shares as well.

    • Is Virtual Office legal?

      Definitely, Virtual Office a a DBD, RD, SSO approved alternative office in Thailand

    • Can you help with to hire 4 Thais as we we need the headcount to apply for my Visa and Work Permit?

      Yes, we can and in fact we have helped many clients with it. Speak to us for more infomration.

    • What is the difference between a Branch Office and a Representative Office in Thailand?

      A Representative Office is a non-income-generating entity that serves as a liaison for the parent company, while a Branch Office can undertake income-related activities on behalf of the parent company in Thailand. Both company structure can be 100% foreign owned however the ultimate entity responsible for both offices business in Thailand will be the Foreigner HQ (Mother) Company.

    • Can a foreigner buy and operate a Franchise in Thailand?

      Yes, foreigners can buy a franchise in Thailand. Franchising in Thailand is regulated by the Thai Franchise Act, and certain requirements must be met.

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