# Thailand Set to Relax Rules on Foreign Business Ownership

- Link: https://www.thailand-business-news.com/asean/217091-thailand-set-to-relax-rules-on-foreign-business-ownership
- Published: 2025-05-12T09:27:00+07:00
- Author: ASEAN Briefing

**Thailand is revising its foreign investment laws to raise foreign equity thresholds.
The reform aims to improve transparency, attract sustainable investments, and position
Thailand as a hub for innovation-driven enterprises.**

**The changes are expected to foster a more competitive business environment, streamline
regulatory processes, and encourage the transfer of advanced technologies. By easing
restrictions on foreign ownership, Thailand seeks to strengthen its global economic
ties and create more opportunities for international investors. The government is
also focusing on sectors such as renewable energy, digital technology, and advanced
manufacturing to align with global trends and ensure long-term economic growth.**

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## Thailand’s Strategic Shift

Thailand is set to reform its foreign investment laws. On April 22, 2025, the Cabinet
approved urgent revisions to the Foreign Business Act B.E. 2542 (1999), instructing
the Ministry of Commerce to draft amendments. This decision reflects a strategic
shift towards a more open investment environment, aligning with Thailand’s broader
economic goals.

Thailand’s Foreign Business Act, introduced in 1999 to replace the Alien Business
Act of 1972, defines sectors where foreign ownership is restricted. These include
industries such as media, agriculture, retail, services, and natural resources. 
Under the current regulations, foreign ownership in these sectors is generally limited
to 49 percent unless a Foreign Business License is obtained—a process often criticized
for being ambiguous and burdened by bureaucracy.

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## Backing and Expectations

The outdated provisions form the core of the government’s revision plans. Supported
by key ministries, including Finance, Commerce, Interior, and Labor, alongside the
NESDC and BOI, the proposed reforms are significant. These amendments aim to modernize
the investment landscape and stimulate economic growth.

## What’s Changing?

A crucial change is the anticipated increase in the allowable foreign equity threshold,
currently capped at 49 percent in restricted sectors. If adopted, foreign investors
could gain majority control in previously closed industries. This reform is aimed
at increasing transparency and attracting long-term investments, enhancing Thailand’s
appeal for innovation-driven businesses.

If implemented, the reform would permit foreign investors to own larger stakes—or
even gain majority control—in industries that were previously restricted. This initiative
aims to minimize reliance on nominee arrangements and foster a more transparent 
legal framework. By enabling greater equity participation, Thailand seeks to draw
increased long-term investment and enhance its attractiveness as a hub for innovation-
driven enterprises.

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  |  This article was first published by _[ASEAN Briefing](https://www.aseanbriefing.com) _, which is produced by [Dezan Shira & Associates](https://www.dezshira.com/). The firm assists foreign investors throughout Asia from offices [across the world](https://www.dezshira.com/office), including in in [China](https://www.dezshira.com/office/china), [Hong Kong](https://www.dezshira.com/office/hong-kong.html), [Vietnam](https://www.dezshira.com/office/vietnam), [Singapore](https://www.dezshira.com/office/singapore.html), and [India](https://www.dezshira.com/office/india) . Readers may write to [info@dezshira.com](https://www.thailand-business-news.com/asean/info@dezshira.com) for more support. |

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