Did you know that Thailand is gaining popularity as a medical tourism destination? The industry was valued at USD 3 billion in 2024 and is projected to grow 11% by 2034. If you want to capitalize on the market as a foreign investor, you need to understand the country’s foreign ownership laws, medical facility and equipment regulations.
Because the medical industry directly affects the health and well-being of your customers, any business that enters the market is heavily scrutinized by the government. To help you navigate these requisites, we will cover Thailand’s most popular medical tourism sectors, foreign ownership regulations, as well as licenses you need to legally operate a medical business.
Business Sectors You Can Enter as a Foreign Investor
Thailand’s medical industry features JCI-accredited hospitals with advanced medical technology, highly skilled English-speaking doctors, and a focus on patient-centered care. Additionally, Thailand provides a holistic approach to healthcare, merging a traditional preventative approach with modern medical practices.
Due to the versatility of the medical tourism industry in Thailand, there are several common business ventures for foreign investors and entrepreneurs. Below you will find an overview of the most popular industries for foreign company registration in Thailand:
Private Hospitals and Specialist Clinics
Operating a full hospital is the highest-barrier-to-entry option, but it's also the most rewarding in terms of revenue potential. Private hospitals in Thailand serve both local patients and international medical tourists. If you want to operate a hospital, you need a hospital license issued by the Ministry of Public Health under the Hospital Act, and the facility must meet strict infrastructure, staffing, and equipment standards.
Specialist clinics are a more accessible entry point. Clinics focused on cosmetic surgery, dental care, fertility treatments, orthopedics, and oncology attract significant numbers of medical tourists. A clinic license is required for any outpatient treatment facility, and it's issued by the Department of Health Service Support (DHSS) under the Ministry of Public Health.
The types of treatments driving the most patient inflows currently include cardiovascular care, cosmetic and aesthetic surgery, dental procedures, fertility and IVF treatments, gender-affirming care, and cancer treatment. These are the specialty areas where investor interest is most concentrated.
Wellness Retreats and Rehabilitation Centers
Thailand's wellness sector is one of the strongest in Asia, and it fits naturally alongside medical tourism. Wellness retreats offer a blend of preventive healthcare, traditional Thai medicine, spa treatments, and post-surgery recovery programs. Southern Thailand, particularly Phuket, Koh Samui, and Krabi, holds about 10% of the country's medical tourism market share largely because of this wellness-and-recovery combination.
From an investment standpoint, a wellness retreat is often less regulated than a clinical facility, though any component that involves actual medical treatment will still require proper licensing. Many investors choose to combine accommodation with wellness programming, which is a practical way to generate multiple revenue streams from a single asset.
Medical Device and Pharmaceutical Distribution
There is strong demand in Thailand for medical devices and pharmaceutical products, both from public hospitals and the expanding private sector. The Thai government actively encourages investment in this area and has extended incentives through the Board of Investment (BOI) for qualifying projects.
If you're importing or distributing medical devices, you'll need to register your products with the Thai Food and Drug Administration (FDA) under the Medical Device Act. For pharmaceuticals, similar FDA registration requirements apply, and you'll need to meet Good Manufacturing Practice (GMP) standards if you're involved in production.
This sector requires less direct patient-facing infrastructure. This makes it appealing for investors who want exposure to the healthcare market without the complexity of running a clinical facility.
Medical Tourism Facilitation and Coordination
A growing sub-sector is the business of coordinating medical travel. This includes companies that act as intermediaries between international patients and Thai hospitals, handling everything from appointment scheduling and travel logistics to accommodation and post-treatment follow-up.
These businesses are not healthcare providers themselves, so they don't require clinical licenses. However, if they arrange travel and tours as part of their services, they may need a tour operator license from the Tourism Authority of Thailand. This is one of the lower-capital entry points into the medical tourism space and is well-suited for entrepreneurs with backgrounds in hospitality or healthcare administration.
Recovery and Post-Treatment Accommodation
The demand for high-quality accommodation near major hospitals has created a niche market for medically focused hotels and recovery residences. These are not hospitals or clinics, but they are designed specifically for patients who need a comfortable, managed environment during their recovery.
International hospitals like Bumrungrad and Bangkok Hospital often have partner accommodation options nearby, and there is room in the market for more. You'll need a hotel license to operate this type of facility, and if any medical monitoring services are included, additional clinical licensing may apply.
Understanding Foreign Ownership Rules
Thailand's Foreign Business Act (FBA) of 1999 is the primary law governing what foreign-owned businesses can and cannot do. Under the FBA, a company is considered "foreign" if 50% or more of its shares are held by non-Thai nationals. As a general rule, foreigners cannot hold more than 49% of a Thai company operating in restricted sectors, which includes healthcare services.
That said, there are three pathways that can allow you to exceed that cap:
- Board of Investment (BOI) Promotion: The BOI is the most practical and commonly used route for healthcare investors. BOI-promoted companies in healthcare also benefit from corporate income tax exemptions for up to 13 years, import duty exemptions on machinery, the ability to own land, and easier work permit approvals for foreign staff. The BOI approval process typically takes three to four months.
- Foreign Business License (FBL): If your business falls under List 2 or List 3 of the FBA's restricted activities, you can apply for an FBL from the Ministry of Commerce. An FBL can grant up to 100% foreign ownership in approved activities, though the approval is subject to ministerial discretion and is not guaranteed.
- US-Thai Treaty of Amity: If you're an American investor or operating through a US-registered entity, the Treaty of Amity allows you to operate in most business sectors in Thailand with the same rights as a Thai national, including majority or full ownership. This does not cover all restricted sectors, but it's a strong option for American investors who qualify.
Warning: Nominee arrangements to circumvent the FBA are illegal in Thailand. Between late 2024 and 2025, authorities initiated legal proceedings in over 820 nominee-related cases across Thailand. The penalties include fines of up to THB 1 million and up to three years in prison for both the foreign investor and the Thai national involved.
Setting Up Your Legal Entity
The most common legal structure for foreign investors entering Thailand's medical tourism industry is the Thai Limited Liability Company (LLC). To incorporate this kind of business structure, you will need:
- Minimum of two shareholders. These can be individuals or corporations, and a mix of foreign and Thai nationals is allowed. Under the standard LLC structure, foreigners can hold up to 49% of shares. If you're pursuing BOI promotion or an FBL, that cap can be raised to 100%.
- Registered business address. Every company in Thailand must have a registered address at a commercial building within the country. This is required if you’re planning to start a medical facility. If you don't have a local office yet, virtual office services are available and widely used by foreign investors during the setup phase.
- Minimum paid-up capital. You need to declare a minimum of THB 3 million (approximately USD 60,000) in paid-up capital if you plan to enter the medical tourism industry. The amount may vary depending on your specific business activities and the type of license you're applying for. For certain BOI-promoted projects, higher capital thresholds (up to THB 30 million) may apply.
- Documentation. The core documents required for registration include the Memorandum of Association, a list of shareholders, and the company registration application. These are submitted to the Department of Business Development (DBD), which issues the Certificate of Company Registration upon approval.
The registration process itself typically takes two to three weeks from submission. Before registering, you'll need to reserve your company name with the DBD. Your proposed name should comply with Thai naming rules and is available for use. To double-check your company name, use our company name checker for free.
For BOI Promotion: If you’re pursuing a BOI Promotion, we recommend applying in parallel with your company registration rather than waiting until after. BOI approval takes four to 6 months on its own, and starting both processes together saves significant time. Once the BOI approves your project, you'll receive a Foreign Business Certificate (FBC) from the DBD, which formally confirms your operations fall within the approved scope.
Check out our comprehensive guide on how to set up a company in Thailand as a foreigner. You can also get in touch with our local compliance team in Thailand for a free first consultation.
How Emerhub Can Help You Enter Thailand's Medical Tourism Market
Emerhub can help you set up a medical tourism business in Thailand. We can help you navigate foreign ownership rules, and secure all the necessary licenses to legally operate in the medical tourism market.
Here’s what we can do:
- Company registration. We manage the entire incorporation process on your behalf, from reserving your company name with the DBD to preparing and submitting your Memorandum of Association and shareholder documentation. You don't need to be physically present in Thailand to get started.
- BOI promotion application. If your project qualifies for BOI promotion, we'll prepare and submit your application, coordinate your meeting with the BOI case officer, and manage follow-ups through to approval. We handle this in parallel with your company registration so you're not losing months waiting for one before starting the other.
- Business licenses and permits. Our team will guide you through securing the specific licenses your business needs, whether that's a clinic license, a medical device registration, an FDA import license, or a tour operator license for your medical tourism facilitation services.
- Virtual office. If you don't have a physical office in Thailand yet, we can provide a registered virtual office address that meets the DBD's requirements, so you can complete your company registration without needing to commit to a lease upfront.
- Tax and accounting compliance. From day one, our team ensures your bookkeeping, payroll, and tax filings are processed correctly and in line with Thai law.
- Work permits and visas. We handle work permit applications for foreign employees and can assist with business visas and relocation for you and your team.
If you're ready to explore entering Thailand's medical tourism market, get in touch with one of our local consultants. We'll assess your business model, walk you through the right ownership structure, and map out a clear path to getting your operations legally set up and running.
Frequently asked questions
Can a foreigner own 100% of a medical tourism business in Thailand?
The standard rule under the Foreign Business Act limits foreign ownership to 49% in most healthcare-related businesses. However, if your project receives Board of Investment (BOI) promotion, you can own 100% of the company. American investors can also explore the US-Thai Treaty of Amity, which provides majority or full ownership rights in most sectors. Without one of these pathways, you'll need Thai partners holding at least 51% of the shares.
Do foreign doctors need a Thai medical license to practice in Thailand?
All medical professionals practicing in Thailand must hold a valid license issued by the Medical Council of Thailand. This applies to foreign doctors as well. While foreign qualifications may be considered during the review process, they do not automatically qualify a foreign doctor to practice. Crucially, the mandatory national licensing examination includes a clinical skills assessment conducted entirely in the Thai language. Because candidates must demonstrate fluent command of complex Thai medical and therapeutic terminology, securing a full license is an exceptionally high barrier that very few non-Thai nationals ever pass. As a result, it’s more common for foreign investors to design their business models around staffing their facilities with locally licensed Thai physicians rather than relying on relocating foreign medical staff.
What is the difference between a hospital license and a clinic license in Thailand?
A hospital license is required for facilities that provide both inpatient and outpatient services, meaning they admit and house patients overnight. A clinic license covers outpatient services only, where patients come in for treatment but are not admitted. Clinic licenses are governed by the Health Facility Act and issued by the Department of Health Service Support under the Ministry of Public Health. Surgical clinics face additional regulatory requirements compared to general outpatient clinics.
How long does it take to set up a medical clinic in Thailand as a foreign investor?
From company registration to receiving all the operating licenses, the typical timeline is four to nine months. Company registration itself takes two to three weeks. The clinic license application, medical device registrations, and any FDA-related approvals add significant time on top of that. If you're applying for BOI promotion as well, add another three to four months for the approval process. Planning your timeline around this is important, especially if you have lease obligations or staff commitments lined up.
Is the medical tourism market in Thailand open to small and medium-sized investors, or is it only viable for large corporations?
Both ends of the market have opportunities. Medical tourism facilitation companies and coordination services, wellness retreats, and post-treatment recovery accommodation are all business models that can be launched with moderate capital. Specialist clinics targeting niche procedures are another viable mid-market entry point. Full hospitals and large-scale medical centers require significantly more investment and are typically the domain of institutional investors or large corporate groups. The key is matching your business model to your capital capacity and making sure your ownership and licensing structure is correctly set up from the start.
What happens if a foreign investor uses nominee shareholders to bypass ownership restrictions?
Using Thai nominees to hold shares on behalf of a foreign investor is illegal and treated as a serious offense under Thai law. Enforcement of this has increased significantly, with over 820 cases investigated in late 2024 and 2025 alone. Penalties for both the foreign investor and the Thai nominee include fines of up to THB 1 million and imprisonment of up to three years. Beyond the legal penalties, companies found to be using nominee structures can be ordered to dissolve. Investors should only work with genuine Thai business partners who have real capital contributions and actual roles in the business.