The Foreign Business Act's 49% cap, and routes to full foreign ownership
The Foreign Business Act, B.E. 2542 (1999) restricts most business activities to a maximum of 49%
foreign shareholding in a standard Thai Limited Company, unless an exemption, Foreign Business License
(FBL), Board of Investment (BOI) promotion, or treaty protection applies. BOI-promoted companies in
strategic sectors -- agriculture, light industry, electronics, chemicals, targeted services, electric
vehicles, biotech, digital services, and others -- can be 100% foreign-owned, with added tax and
import-duty benefits. This platform explicitly flags that the separate US-Thailand Treaty of Amity, which
allows US nationals and companies a distinct 100%-ownership route, does NOT apply to Indian nationals --
an important distinction so readers don't assume Amity Treaty benefits are available to them. A
foreign-majority company generally needs registered capital exceeding THB 3 million and is prohibited from
owning land.
Visa categories relevant to an Indian entrepreneur or investor
The Non-Immigrant “B” Visa is the standard route for business or employment, typically
paired with a Thai work permit. The Thailand Privilege Visa (formerly “Thailand Elite”), a
non-work residency-by-investment program, and the LTR (Long-Term Resident) Visa -- a renewable 10-year
visa with sub-categories including Wealthy Global Citizens, Wealthy Pensioners, Work-from-Thailand
Professionals, and Highly-Skilled Professionals -- are both longer-stay options, with the LTR's
Highly-Skilled Professional category offering a flat 17% personal income tax rate against Thailand's
standard progressive rates of up to 35%. This platform sourced specific LTR fee figures from a visa-agency
site rather than the Thai Board of Investment directly and recommends confirming current figures at
boi.go.th.
Deepening India-Thailand bilateral ties
During Prime Minister Modi's visit to Thailand for the 6th BIMSTEC Summit on 3-4 April 2025, India and
Thailand elevated bilateral relations to a “Strategic Partnership,” covering
defence/security cooperation, trade and investment (including exploring a local-currency trade settlement
mechanism), connectivity (fast-tracking the India-Myanmar-Thailand Trilateral Highway), and cultural
exchange. Bilateral trade reached a record USD 20.93 billion in 2025 per the Embassy of India, Bangkok, up
from USD 16.51 billion in 2024. The India-Thailand Free Trade Agreement (Early Harvest Scheme), covering
83 products, has been operational since September 2004, under the broader India-Thailand Comprehensive
Economic Cooperation Agreement.
Common mistakes NRIs and Indian businesses make when entering Thailand:
- Assuming the US-Thailand Treaty of Amity's 100%-ownership route is available to Indian
nationals, when it is not.
- Underestimating the Foreign Business Act's 49% cap and not planning for a BOI promotion or FBL
route where full foreign ownership is needed.
- Confusing the Thailand Privilege Visa (non-work) with the LTR Visa's work-eligible
sub-categories and additional tax benefits.
