International Headquarters and International Trade Centers

Siam Legal has extensive experience in working with foreign investors to help them establish their business operations in Thailand. For the convenience of our foreign clients, we prepare brief translations and synopses of Thai government announcements that directly or indirectly affect them. Recently, on January 15, 2015, the Department of Business Development issued an announcement regarding the processing times to issue a Foreign Business Certificate or a Foreign Business License for foreigners that wish to establish International Headquarters (IHQ) or International Trade Centers (ITC) in Thailand. Both types of business operations are considered “service businesses” according to the Foreign Business Act of 1999 and foreigners require permission before they may set up such operations. A summarized translation is as a follows:

• According to a resolution of the Cabinet to promote the establishment of International Headquarters and International Trade Centers in Thailand, in order for Thailand to become a center for trade and investment in the region, the Department of Business Development hereby issues the following announcement:
• The issuance of a Foreign Business Certificate according to Section 12 of the Foreign Business Act in the case of Board of Investment promotion for the establishment of an IHQ or ITC shall be within 15 days from the date that notification of Board of Investment promotion is received.
• The rules and procedure regarding the issuance of Foreign Business Certificates shall be in accordance with the Announcement of the Department of Business Development issued on 17 June 2003 and the Announcement of the Department of Business Development issued on 29 December 2011.
• The issuance of a Foreign Business License according to Section 17 of the Foreign Business Act for the establishment of an IHQ or ITC shall be considered and a decision made within 30 days after the application is submitted.
• The rules and procedures regarding the issuance of a Foreign Business License shall be according to the Ministerial Regulation issued on 1 May 2003 and the Announcement of the Ministry of Commerce issued on 1 December 2011.

It should be noted that U.S. investors who wish to set up IHQs or ITCs under the Thai-U.S. Treaty of Amity must also apply for a Foreign Business Certificate, but under Section 11 of the Foreign Business Act. In this case, U.S. investors under the Thai-U.S. Treaty of Amity are subject to the normal time period specified by the Foreign Business Act, which is within 30 days. Foreign Investment laws in Thailand are complex. Investors are advised to consult with competent legal counsel.

 

Category: Business in Thailand, Company Law, Company Registration