LIBERALIZATION OF LIST 3 TO FOREIGN BUSINESS ACT – MAJORITY FOREIGN OWNERSHIP IN CERTAIN BUSINESS ACTIVITIES NOW OPEN TO FOREIGNERS

31 May 2018

Under Thailand’s Foreign Business Act of 1999 (“FBA”), certain business activities of foreigners are prohibited. FBA categorizes prohibited businesses into 3 categories.  First category is strictly prohibited to foreigners whereas the second and third categories are restricted unless a foreign business license or foreign business certificate has been obtained from authorized government authorities.

On July 12, 2016, the Council of Ministers approved the Draft Ministerial Regulations (“Draft Regulations”) which liberalize the following 2 groups of business activities from “other service businesses” of category no. 21 of List 3. Foreigners wishing to engage in these liberalized businesses are not required to obtain a foreign business license or have minimum registered capital of Baht 3 million as required by the FBA.

Group 1: Businesses covered by specific laws and requested by authorities:

1.1) 12 businesses activities connected with commercial banking such as banking agent, private repurchase, hire purchase business, cash management and etc. 

1.2) Asset management business under the Asset Management Corporation Law

Group 2: Businesses with limited service scope and no effect on Thai national operators, i.e. representative offices, regional offices, state enterprises and operators who are contracted to provide services to government.

Currently, the Draft Regulations are in the process of being submitted to the Council of State for review after which it will be forwarded to the Minister of Commerce, before being officially issued in the government gazette.