Foreign Business License Application
Under the Foreign Business Act of 1999 (B.E. 2542), foreign involvement in business activities in Thailand is limited. Meaning to say, companies with shares that are majority foreign-owned can be classified as foreign business entities thus the need for them to secure the foreign business license first before they can operate in Thai soil. On the contrary, companies with less than 49% foreign ownership can operate without the need to obtain a foreign business license as they are classified as Thai companies. However, foreign business entities wishing to invest in Thailand and are looking forward to obtain the foreign business license must first make sure that the type of activity they will indulge in the Kingdom belongs to either:
- List 2 – these are businesses permitted to foreigners but on certain conditions and these foreign companies need to obtain permission from the Cabinet first.
- List 3 – these are businesses that are not yet permitted to foreign companies but maybe allowed if permission has been handed by the Director-General of the Commercial Registration Department (CRD).
License ApplicationObtaining the foreign business license practically involves two steps:
- The acceptance of an official of the Ministry of Commerce of the official company documents and application for committee review and;
- The committee’s actual review of the application.
- list of company shareholders,
- amount of paid-up capital,
- business location,
- list of directors and authorized company signatories and
- other details that include evidences of the official company representative is qualified to act in such capacity.
- The advantage and disadvantage it will cause to the country’s safety and security.
- Economic and social development.
- Public order, good morals, art, culture and traditions of the Thailand.
- Natural resources conservation, energy and environment, consumer protection, company size and employment.
- Technology transfer and research and development.