Outsiders are disallowed from working explicit organizations in Thailand that are set out underneath in three records from the Unfamiliar Business Act (FBA). An unfamiliar permit to operate can be gotten to work organizations under Records Two and Three. The cycle to get an unfamiliar permit to operate in Thailand is long and costly with no assurance of positive outcomes.
Most unfamiliar possessed organizations in Thailand are organized utilizing a Thai larger part investor or Leading group of Venture (BOI) honors to stay away from use of the Unfamiliar Business Act. The main sorts of organizations the outsiders can claim 100% percent in Thailand without a permit are makers and exporters. For the most part, we wouldn't prescribe to apply for an unfamiliar permit to operate in Thailand with the exception of huge notable worldwide organizations contributing enormous amounts of capital and making various positions for Thai residents.
The Thai legislator annexed a Third List to the FBA, listing all businesses in which Thai nationals are not ready to compete unless permitted by the Director-General with the approval of the Committee. Do note that this permission will most probably be subjected to certain conditions. The activities mentioned in List three concern amongst others:
Rice milling and flour production from rice and farm produce
Fishery, specifically marine animal culture
Forestry from forestation
Production of plywood, veneer board, chip board or hardboard
Production of lime
Accounting or service business
Legal service business
Architecture service business
Engineering service business
Construction, except for:
Construction rendering basic services to the public in public utilities or transport requiring special tools, machinery, technology or construction expertise having the foreigner’s minimum capital of 500M THB or more
Other categories of construction as prescribed by the ministerial regulations
Broker or agent business, except:
Being a broker or agent for underwriting securities or services connected with future trading of commodities or financing instruments or securities
Being broker or agent for trading or procuring goods or services necessary for production or rendering services amongst affiliated enterprises
Being a broker or agent for trading, purchasing or distributing or seeking both domestic and foreign markets for selling domestically manufactured or imported goods in the manner of international business operations having the foreigners’ minimum capital 100M THB or more
Being broker or agent of other category as prescribed by the ministerial regulations
Auction in the manner of international bidding not being the auction of antiques, historical artefacts or art objects which are Thai works of art, handicraft or antiques having the historical value
Other categories of auction as prescribed by the ministerial regulations
Internal trade connected with native products or production not yet prohibited by law
Retailing all categories of goods having the total minimum capital less than 100M THB or having the minimum capital of each shop less than 20M THB
Wholesaling all categories of goods having minimum capital of each shop less than 100M THB
Hotel business, except for hotel management service
Selling food or beverages
Plant cultivation and propagation business
Other categories of service business except that prescribed in the Ministerial regulations
The list is not only long. A carryall clause has been inserted as well: ‘other categories of service business except that prescribed in the ministerial regulations’. This clause gives the Director-General extensive powers; every activity can be subjected to his approval, except for those expressly authorised (e.g. hotel management service).
License Absolute prohibition
Foreigners as described above shall be prohibited from operating the following businesses (enumerated in List One, annexed to the FBA):
Newspaper business, radio broadcasting or television station business
Rice farming, farming or gardening
Forestry and wood fabrication from natural forest
Fishery for marine animals in Thai waters and within Thailand specific economic zones
Extraction of Thai herbs
Trading and auctioning Thai antiques or national historical object
Making or casting Buddha images and monks alms bowls
Given the fact that these activities touch the very essence of Thai economic culture, it seems understandable that these activities cannot be conducted by foreigners.
List two and three give an overview of the activities that can be conducted by foreigners, but only if they have received special permission to do so. It concerns two groups of businesses, subdivided based upon what is protected. First of all, national safety and security, art and culture, tradition and folk handicraft and natural resources or environment are safeguarded. A foreigner cannot start up a business affecting these areas, unless permitted by the Minister of Commerce with the approval of the Cabinet. It concerns:
Group 1: Businesses related to the national safety or security
Production, selling and maintenance of:
Firearms, ammunition, gun powder, explosives
Accessories of firearms, ammunitions and explosives
Armaments, ships, air-crafts or military vehicles
Equipment or components, all categories of war materials
Domestic land, waterway or air transportation, including domestic airline business
Group 2: The businesses affecting arts and culture, traditional and folk handicraft
Trading antiques or art objects being Thai arts or handicraft
Production of carved wood
Silkworm farming, production of Thai silk yarn, weaving Thai silk or Thai silk printing
Production of Thai musical instruments
Production of gold ware, silverware, nielloware, bronze ware or lacquerware
Production of crockery of Thai arts and culture
Group 3: The businesses affecting natural resources or environment
Manufacturing sugar from sugarcane
Salt farming, including underground salt
Rock salt mining
Mining, including rock blasting or crushing
Wood fabrication for furniture and utensil production
In order to conduct a business of List two, at least 40% of the capital has to be held by Thai nationals or juristic persons that are not foreigners under the FBA. The FBA also states that unless there is a reasonable cause, the Minister (with the approval of the Cabinet) may reduce the proportion requirement but it shall not be less than 25 percent and the number of Thai directors shall not be less than two-fifths of the total number of directors.
Our Foreign Business License - FBL application service includes the following:
Advise client on all required information and documents to apply for a foreign business license.
Prepare a foreign business application with the assistance of the client.
Filing the application with the MOC.
Assist in communicating with the MOC.
Accompanying the representatives of the client in meetings with the MOC if necessary.
Make presentations to the MOC in regards to the business plan.
Follow up the application with the MOC officers.
Submit any additional information or documents required by the MOC with the assistance of the client.
Receive the foreign business license.
Provide an English translation of the foreign business license.
Correspondence by email, telephone and in person meetings when necessary.
Your most asked queries
are answered by Our Experts
Our staff is ready to discuss your business needs, and answer any questions you may have.