Thai senator proposes 100% foreign business ownership to fix the nominee problem

A Thai senator has proposed allowing 100% foreign ownership in Thailand as a way to end the country's long-running nominee problem. Speaking in a Senate meeting on 1 September 2026, Senator Prathum Wongsawat argued that letting foreigners own a business in proportion to the money they actually invest would remove the incentive for the fake shareholding arrangements that currently sit in a legal grey zone. It is an eye-catching idea, and for the many foreigners who run or want to run a business here it is worth understanding exactly what was said, what it would change, and how far it is from becoming law.

What the senator actually proposed

The core of the proposal is simple. Instead of the current cap that limits foreign investors to a 49% stake, foreigners would be allowed to own up to 100% of a business, matched to the share of the capital they put in. Alongside that, Wongsawat suggested setting clear, published investment thresholds that would qualify an investor for residency and, at higher levels, for Thai citizenship.

Her framing was that this would convert what she called "grey capital" into "white capital". In other words, money that is already in the country but routed through workarounds would instead flow in openly, be properly recorded, and be taxed transparently. She drew on her own experience investing in Russia, where, she said, ownership simply reflects how much each party has invested.

It is important to be precise here: this was a proposal raised by one senator in a debate, not a bill, a cabinet decision, or a change to the law. Nothing about how foreigners register or run a company has changed as a result.

Why the 51/49 rule pushes people toward nominees

Under the Foreign Business Act, most limited companies in restricted sectors must be majority Thai-owned, meaning Thai nationals hold at least 51% and the foreign investor is capped at 49%. For a foreigner who is funding the whole venture, handing formal control to Thai shareholders they may barely know is uncomfortable, so a workaround industry has grown up around it.

Wongsawat pointed to the familiar mechanics of that workaround: Thai nominee shareholders who hold shares on paper only, false identities and addresses, and arrangements structured mainly to look compliant. A nominee setup is illegal, and periodic crackdowns are exactly why so many owners feel exposed. If you are weighing any of this, our guide on how to start a business in Thailand walks through the legal structures, and the work permit and Non-B visa guide covers the paperwork that goes with actually working in your own company.

The corruption angle behind "grey capital"

The senator's sharpest point was about why crackdowns keep failing. Her argument is that an investor who has provided all the capital is never realistically going to give up control, so the gap between the law on paper and the reality on the ground creates a permanent opening. That gap, she said, is where officials can demand illicit payments, and where tax is quietly avoided rather than collected.

Legalising full ownership, on this view, is not a giveaway to foreigners. It is a way of closing the space where extortion and lost tax revenue live, and bringing the money onto the books. Whether or not you agree, it is a notably different diagnosis from "enforce harder", and it lands during a wider push against nominee businesses. If you ever find yourself dealing with officials directly, it is worth knowing your rights if the police search you in Thailand.

What it would mean for foreigners in Phuket

For the business owners, remote workers, and would-be investors around Phuket, the practical appeal is obvious. Full ownership matched to investment would remove the need for nominee arrangements, make banking and accounting cleaner, and give a clearer path from investing to staying long term. The residency and citizenship thresholds she floated would sit alongside existing investment-linked routes such as the Thailand LTR visa and the Thailand Privilege visa.

It would not touch every restriction overnight. Foreigners still cannot own land outright, so property questions like buying a condo in Thailand would stay governed by their own rules. Tax would still matter too, and anyone bringing money in should read up on Thailand's foreign income tax and how to open a bank account in Thailand. For now, the safest reading is that day-to-day life for digital nomads in Phuket and the wider expat communities in Thailand is unchanged, and there is plenty of coworking space in Phuket to keep working from in the meantime.

Is this law yet, and what happens next?

No. A proposal in a Senate meeting is the very start of a long process, not the end of one. For an idea like this to change anything, it would need to be worked into a formal bill, survive committee scrutiny, pass both chambers, and be signed into law, and reforms touching foreign ownership are historically slow and politically sensitive. It may go nowhere, or it may resurface in a watered-down form.

What it does show is that the debate has shifted. When a sitting senator argues publicly that the 49% cap itself is the root cause of the nominee problem, rather than a rule that just needs firmer enforcement, that is a signal worth watching. We will update this article if a concrete bill follows.

This article summarises a news report and is for general information only. It is not legal advice. If you are structuring a business or investment in Thailand, take advice from a qualified Thai lawyer.

Frequently asked questions

Can foreigners own 100% of a business in Thailand now?

No. Under the current Foreign Business Act, most companies in restricted sectors must be at least 51% Thai-owned, so a foreign investor is generally capped at 49%. The 100% idea is a senator's proposal, not the current law.

Who proposed 100% foreign ownership in Thailand?

Senator Prathum Wongsawat raised it during a Senate meeting on 1 September 2026. She argued that ownership should be proportional to the capital invested and that clear investment thresholds should unlock residency and citizenship.

What is a nominee business in Thailand?

A nominee arrangement is where Thai nationals hold shares on paper to satisfy the 51% Thai-ownership rule while a foreigner actually controls and funds the company. It is illegal, and it is exactly the practice this proposal is meant to make unnecessary.

Does this proposal change anything for me right now?

No. Nothing about how you register or run a company has changed. It is a proposal in debate, not a bill or a new regulation, so existing rules and structures still apply.

Would this let foreigners buy land in Thailand?

The proposal is about business ownership, not land. Foreigners still cannot own land outright, and property purchases such as condos would continue under their own separate rules.

Sources

The Thaiger: Thai senator suggests 100% foreign ownership to fix nominee problem