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Download the Procedures_FDL_FBA.pdf
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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:
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).
Foreigners as described above shall be prohibited from operating the following businesses (enumerated in List One, annexed to the FBA):
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:
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.