Thai Cabinet backs bill to ease startup fundraising

Thailand’s Cabinet has approved in principle a bill that would ease fundraising and shareholding restrictions for startups and give eligible companies five years of rights and benefits.

Ekkaphop Phianphiset, spokesman for the Prime Minister’s Office, said the draft Startup Business Promotion Act would be reviewed by the Office of the Council of State after the Cabinet's approval.

The Cabinet also instructed the Department of Business Development to revise provisions of the Civil and Commercial Code governing limited companies, along with related legislation, to accommodate modern business models and fundraising practices.

Deputy Prime Minister Phiphat Ratchakitprakarn chaired the meeting at 10am on Tuesday (September 8, 2026) in Committee Room CB 406 on the fourth floor of the Parliament building on Samsen Road in Bangkok’s Dusit district.

Eligibility based on company age, revenue and ownership

The proposed framework would be voluntary, allowing businesses to choose whether to use its rights and benefits rather than requiring all startups to participate.

To qualify, a business would have to be a limited company that:

• Is no more than 10 years old.
• Has average annual revenue over the preceding three years of no more than 300 million baht.
• Has never paid dividends.
• Is not controlled by another company.

Eligible businesses could submit an electronic self-certification to the National Innovation Agency (Public Organization), or NIA.

Startups using deep technology in agriculture or other designated fields could receive benefits for longer than the standard five-year period, up to a maximum of 10 years, the spokesman added.

Public share offers and more flexible equity arrangements

The bill would give participating startups greater flexibility in raising capital and managing their shareholding structures.

Subject to prescribed rules and conditions, the proposed rights would include:

• Offering shares to the public and issuing debentures.
• Converting debt into equity.
• Converting preference shares into ordinary shares.
• Introducing share vesting arrangements.
• Holding their own shares for allocation to directors, employees or investors under employee stock ownership plans (ESOPs) and investment agreements.

NIA to provide funding and coordinate benefits

NIA would be authorised to support startups through loans, equity holdings and co-investment.

It would also act as a one-stop service agency, coordinating with relevant authorities on immigration and work privileges for foreign nationals, intellectual property, taxation, procurement and other benefits.

The government said the legislation was intended to remove legal barriers, improve access to funding and knowledge, and create an environment in which Thai startups could innovate, grow and compete internationally. Those objectives would also support economic development and strengthen national competitiveness.

The draft would establish a Startup Business Promotion Committee responsible for setting policies, strategies and plans for promoting and developing startup businesses.