For many foreign entrepreneurs looking to establish a business in Thailand, the question of ownership arises very early in the process. Some investors hear about so-called “nominee shareholder” arrangements, whereby Thai nationals hold shares on behalf of a foreign investor in order to comply, at least on paper, with foreign ownership restrictions.
These arrangements are often presented as common market practice, or as a practical solution for businesses that do not qualify for BOI promotion. Their widespread use, however, should not be confused with legality. Under Thai law, nominee structures are prohibited and can expose both the foreign investor and the Thai shareholder to significant legal consequences.