🇹🇭 Thailand · reviewed 2026-10-09
Can foreigners own a business or franchise in Thailand?
A foreign franchisor can license a Thai company without setting up in Thailand. Running the restaurants itself is another matter: food service is a restricted business under the Foreign Business Act, and retail is exempt only at capital levels most brands will not reach.
Franchising without a Thai entity
- There is generally no specific reason for an overseas franchisor to set up a Thai entity to sign a franchise agreement with a Thai franchisee. Direct cross-border franchising, or master franchising to a majority-Thai company, is common. Secondary · Tilleke & Gibbins, ICLG Franchise 2025: Thailand, 2024-11-01
The Foreign Business Act
- Sale of food and beverages is a List 3 business (item 19) under the Foreign Business Act 1999. A foreign-majority company needs a Foreign Business Licence to run restaurants, or a Foreign Business Certificate if it has Board of Investment promotion. Official · Department of Business Development, via BOI
- Retail sale of goods is on List 3 (item 14) when total minimum capital is below THB 100 million or below THB 20 million per store. Above those thresholds, with capital fully paid up, a foreign retailer needs no licence. Official · BOI One Start One Stop, retail capital FAQ
- A foreigner must bring in minimum capital of at least THB 2 million, and at least THB 3 million per business for businesses that need a licence under the lists. Official · Foreign Business Act 1999 s.14, BOI translation
Structures franchisors use
- Master or unit franchise to a majority-Thai company: no Foreign Business Licence is needed by the franchisor, and the operator is not a foreign business.
- Foreign-majority operator with a Foreign Business Licence, or a Foreign Business Certificate under Board of Investment promotion, for company-owned stores.
- Retail-led formats above the THB 100 million / THB 20 million per store threshold, where the capital plan already supports it.
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