Established in 1999, the Foreign Business Act ("FBA") forbids foreigners from

being involved in many business and economic categories in Thailand unless they

obtain the foreign business license.

 

    The FBA also prevents foreigners from owning shares exceeding 49% in a company in Thailand unless a foreign business license is granted.

One of the main purposes of the FBA is to ensure that foreign-owned businesses do not compete with Thai businesses and disadvantage Thai people through this process.

 

Business categories in the EBA

The FBA generally separates businesses into the following 3 categories:

    ㆍ List 1: This includes businesses that foreigners are restricted from operating

due to different reasons and cannot get the FBL for ("Stricto Sensu");

    ㆍ List 2: This includes businesses that concern national security and identity

or businesses that have an impact on arts, culture, traditions, customs,

folklore, handicrafts, natural resources or the environment. Foreigners can

operate these if the Minister of the Ministry of Commerce and the Cabinet

have authorized them; and

    ㆍList 3: This includes businesses in areas of which Thai nationals are not yet

ready to compete with foreigners. Foreigners can operate these businesses if

they have obtained the Foreign Business Certificate ("FBC").

 

In addition, there are other ways to grant the permission for operating the business in

Thailand by means of Treaty of Amity, or Board of Investment approval.

 

Written by Thanatchanan Marktavee | Phubordee Saengfuang

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