Exempts certain business activities from the requirement to obtain a license under the Foreign Business Act

On 9 June 2017, the Ministry of Commerce has issued a regulation exempting certain business activities from the requirement of obtaining a foreign business license. The exempted businesses can be divided into two groups. Group 1 includes businesses governed by the laws on financial institutions while Group 2 covers businesses under other specific laws such as representative offices, regional offices and business operators who are contracted to provide services to government agencies or state-owned enterprises. However, exempted businesses will still be subject to licensing requirements and foreign shareholding limits under specific regulations, particularly for those operating businesses under Group 1. Foreign companies operating in Group 2 need to obtain a registration number and notify the authority of the place where they are operating the businesses in Thailand, in order to comply with the requirements for preparation and filing of accounts under the Accounting Act.

• Type:

  • Entry and establishment (Approval and admission)
  • Promotion and facilitation (Investment facilitation )

• Industry:

  • Services (Financial and insurance activities)
  • Services (Financial and insurance activities)

• Sources:

  • Baker McKenzie, Restrictions Eased for Foreign Investors in Certain Businesses, http://www.bakermckenzie.com/en/insight/publications/2017/06/restrictions-eased-for-foreign-investors, 14 Jun 2017
  • Rödl & Partner , Thailand: Eased Foreign Business Restrictions in Certain Sectors, http://www.roedl.com/locations/asiapacific/thailand/thailand_eased_foreign_business_restrictions_in_certain_sectors.html, 09 Jun 2017
  • Deloitte (legal alert), Business activities that will be exempt from the requirement to obtain a license under the Foreign Business Act B.E. 2542, https://www2.deloitte.com/content/dam/Deloitte/th/Documents/legal/th-legal-alert-en-210617.pdf, 09 Jun 2017