100% foreign ownership is one of the key advantages granted by the BOI (Board of Investment) to business projects. Most approved projects benefit from this privilege. However, there are exceptions.
Criteria for foreign shareholding in BOI projects:
— For projects under List 1 of the Foreign Business Act, Thai individuals or legal entities must hold at least 51% of the registered capital.
— For projects under List 2 and List 3 of the Act, there are generally no restrictions on foreign shareholding, unless otherwise предусмотрено специальным законодательством.
— The BOI may, at its discretion, impose foreign ownership limits for specific projects.
What is included in List 1?
These are business activities prohibited for foreigners “for special reasons”:
- Newspaper publishing, radio broadcasting, or television businesses
- Rice farming, plantations, or crop production
- Livestock farming
- Forestry and processing of natural forest wood
- Fishing, specifically catching aquatic animals in Thai waters and designated economic zones
- Extraction of Thai medicinal herbs
- Trading and auctions of Thai antiques or objects of historical value
- Production or casting of Buddha images and monk alms bowls
- Land trading
Conclusion
Even if your project receives BOI incentives—both tax and non-tax—if it falls under one of the above restricted activities, Thai partners holding at least 51% of the company’s shares will still be required.
Author: Alexandra Agapitova.
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