Is using nominee shareholders legal in Thailand?

Detailed Answer

Nominee shareholders and Thai law: **What is prohibited:** Using Thai nationals as 'nominee' shareholders — people who hold shares on behalf of a foreigner to make the company appear Thai-majority and avoid Foreign Business Act restrictions. **Legal provisions:** - Section 36 of the Foreign Business Act: fine up to THB 1 million and/or 3 years imprisonment - Section 17: the company can be ordered to cease operations - The Department of Business Development (DBD) can investigate shareholder structures **Red flags the DBD looks for:** 1. Thai shareholders with no visible income to justify their investment 2. All operational control held by the foreign minority shareholder 3. Loan agreements where Thai shareholders borrowed money from the foreigner to buy shares 4. Thai shareholders who are employees of the foreign shareholder **Legal alternatives:** BOI promotion (100% foreign ownership), Foreign Business License, Treaty of Amity (US citizens), or genuinely partnering with Thai investors who provide real capital and involvement.

Foreign Business Act

Company Structure

DBD Investigation

Do I need a work permit for remote work in Thailand?

Strictly yes — Thai law requires a work permit for any 'work' performed in Thailand regardless of employer location. The DTV (Destination Thailand Visa) is the primary legal option for remote workers.

How do I start a company in Thailand as a foreigner?

Most common structure: Thai Limited Company with minimum 2 shareholders (reduced from 3 by Civil and Commercial Code Amendment Act No. 23 B.E. 2566 (2023), effective 7 February 2023). Foreign majority ownership requires a Foreign Business License unless in promoted activities or BOI-approved.

What are my rights if I'm fired in Thailand?

Employees are entitled to advance notice (or pay in lieu), severance pay based on years of service (30-400 days), and accumulated benefits. Unfair dismissal can be challenged at the Labour Court.

What jobs are prohibited for foreigners in Thailand?

The Alien Occupation Act lists 39 occupations prohibited for foreigners, including manual labor, driving, accounting for Thai firms, hairdressing, and street vending.

What is the minimum wage in Thailand?

Thailand's minimum wage runs from about THB 337 to THB 400 per day depending on the province and sector, with Bangkok at THB 400 (rates revised effective 1 July 2025). Confirm the current rate for a specific province with the Ministry of Labour.

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