Category: Company Law
Service Businesses Which Foreigners May Operate Without A Foreign Business License
According the Foreign Business Act of 1999, foreigners are required to obtain a Foreign Business License before they may operate “other types of service businesses, except for those specified by Ministerial Regulations”. This provision in the law has generally restricted foreigners in Thailand from operating all types of service businesses except for those that are […]
Restricting Foreign Ownership: Amendments to the FBA
The Thai government has recently announced plans to make Thailand the financial capital of Southeast Asia. This was later followed up with an announcement that the Ministry of Commerce is reviewing whether to further tighten the definition of a foreign owned business in the Foreign Business Act. This set off alarms among many Thai-Foreign joint […]
Export and Import Licenses in Thailand
The import/export business appeals to many foreign entrepreneurs in Thailand because it is a line of business that is not restricted by the Foreign Business Act of 1999. This means that a foreigner can engage in an import/export business without a 51% Thai shareholder or without having to apply for permission from the Thai government. […]
Establishing a Food Production Plant in Thailand
Under the Food Act of 1979, no one is allowed to establish a food production plant in Thailand, unless they have received a license from the proper authorities. The licensing process has two main parts: (1) the preparation and submission of the application and (2) the preparation of the food production site. The application must […]
DBD Regulations for Company Registrations
The Department of Business Development (DBD) has issued an order promulgating additional rules and documents necessary for the registration of partnerships and companies with a capitalization of over 5,000,000 Baht or for the registration of an increase in capitalization of a partnership or company of to an amount over 5,000,000 Baht. Generally, applicants are required […]
Foreign Business License: Regional Office
Foreign multinational companies with business operations in the ASEAN region or Asia may consider setting up a regional office in Thailand as a support hub for their corporate network in the region. Nevertheless, the regional office is considered a “service” business within the definition of category (21) of List Three annexed to the Foreign Business […]
BOI and the Foreign Business Act
Foreign-owned companies that are registered in Thailand are eligible for promotion under the Board of Investment (BOI) Thailand. Furthermore, once BOI promotion has been granted, the promoted company may apply for a “Foreign Business Certificate” under Section 12, which allows majority foreign ownership specifically for companies promoted under the BOI. Nevertheless, the Foreign Business Certificate […]
Section 10 of the Foreign Business Act
Foreigners who operate a business in Thailand under a treaty to which Thailand is bound, such as Americans who open a company under the Thai-U.S. Treaty of Amity have their rights to operate business confirmed under Section 10 paragraph two of the Foreign Business Act of 1999 which states as follows: “Foreigners operating businesses specified […]
Withholding Tax for Sale of Property with Co-Owners
According to Thai Revenue Department regulations1, when the immovable property, such as land, with co-owners is sold, then payment of withholding tax when the transaction is registered at the Land Office shall apply as if the co-owners are engaged in an ordinary partnership according to Section 1012 of the Civil and Commercial Code2; in other […]
Operating as a Foreign Business in Thailand: Pros and Cons
When doing business in Thailand, one has the option of operating in a joint-venture with majority Thai ownership or as majority or solely foreign-owned firm. Although Thai law is restrictive of how foreigners are able to operate the business, it nevertheless does allow majority foreign ownership of the business and foreign entrepreneurs to engage in […]
