Angelo Vertti, 18 de setembro de 2022

The minimum capital to be used by a foreigner for the commencement of the operation of a business in Thailand shall not be less than that prescribed in the Ministerial Regulation, provided that it shall not be less than two million Baht. Foreign Business Act of 1999 and Activities Restricted to Thai Nationals Thai law regulates the activities in which the companies designated as "foreigner" may engage in. Any foreigner who operates a business in violation of section 6, section 7 or section 8 shall be liable to imprisonment for a term not exceeding three years or to a fine of one hundred thousand Baht to one million Baht or to both, and the Court shall order the cessation of the business operation or the cessation of the undertaking or order the cessation of shareholding or partnership, as the case may be. For additional information, contact the Office of Board of Investment on 555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900 and telephone at +662-553-8111 or website at www.boi.go.th. The National Committee on Intellectual Property Policy sets Thailands overall Intellectual Property (IP) policy. It is possible for foreigners to have control of a Thai Limited company while still adhering to the ownership requirements of the FBA. However, the Treaty does not exempt U.S. investments from restrictions applicable to: owning land; fiduciary functions; banking involving depository functions; inland communications & transportation; exploitation of land and other natural resources; and domestic trade in agricultural products. What is the Foreign Business License? Other relaxed immigration rules include having visa holders report to the Bureau of Immigration just once per year (instead of every 90 days) and providing the visa holders spouse and children many of the same privileges as the primary visa holder. Thailand has one physical market, Patpong Market in Bangkok, listed in the USTRs 2019Review of Notorious Markets. Foreigners who have acquired the right or have been permitted to operate businesses under the Notification of the National Executive Council No. A key point of reference for policymakers in formulating investment policies and negotiating investment agreements. The definition takes into account the ownership and not the effective control of the company. Thailand, the second largest economy in the Association of Southeast Asian Nations (ASEAN), is an upper middle-income country with pro-investment policies and well-developed infrastructure. The appeal does not stay the execution of the order given by the Director-General, unless such stay is granted by the Minister with the recommendation of the Commission. These predominantly concern the degree of severity on foreign ownership and operation of these businesses. Thailand continues to encourage investment from all countries and seeks to avoid dependence on any one country as a source of investment. Thailands largest commercial bank is Bangkok Bank, with assets totaling USD 100 billion as of December 2019. Section 15 of the FBA provides that a foreigner who is a juristic person, may undertake any business stated in List Two, if no less than fifty percent of the companies shares are held by Thai nationals or juristic persons which are not classed as foreigners under the FBA. The main legislation that governs and imposes restrictions on foreign investment in Thailand is the Foreign Business Act B.E. Thailand continues to generally welcome investment from all countries and seeks to avoid dependence on any one country as a source of investment. A 15-member State Enterprises Policy Commission, or superboard, oversees operations of the countrys 56 SOEs. In the performance of duties, the competent official must show the identification card to persons concerned. In 2019, Thai companies continued to expand and invest overseas. A composition takes place when a debtor expresses in writing a desire to settle his/her debts, either partially or in any other manner, within seven days of submitting an explanation of matters related to the bankruptcy or during a time period prescribed by the receiver. In the second case, Thailand is engaged in a dispute over the governments invocation of special powers to shut down a gold mine in early 2017. International Commercial Arbitration and Foreign Courts. The act also identifies the limit of foreign participation in a business in Thailand. Subject to section 7, section 19 and section 20, a licence shall be valid for an indefinite period until cessation by the licence grantee of the permitted business. 1. B.E. Thai corporate laws allow outbound investments to be made by an independent affiliate (foreign company), a branch of a Thai legal entity, or by any Thai company in the case of financial investments abroad. a foreigner who has been deported or whose deportation is pending; a foreigner entering and staying in the Kingdom without permission under the law on immigration or other laws. . In the case of violation of the order of the Court, the violator shall be liable to a fine at the daily rate of ten thousand Baht to fifty thousand Baht throughout the period of the violation. Amata Industrial Estate and WHA Industrial Development are Thailands leading private industrial estate developers. 2535 (1992). The Foreign Business Act was a law enacted by the Chuan Leekpai-controlled National Legislative Assembly of Thailand in 1999 that limited foreign ownership of certain Thai industries. If the Chairperson is not present at the meeting or is unable to perform the duty, the members present shall elect one amongst themselves to preside over the meeting. These alternative financial services, with the exception of informal money lenders, are regulated by the government. In other areas, such as digital and cybersecurity laws, the Thai government has taken stakeholders comments into account and amended draft laws accordingly. The activities stated below are designated as businesses in which Thai nationals are not yet ready to compete with foreigners: If a foreign entity wishes to engage in any of the activities listed in List 2 or List 3 of the Foreign Business Act in Thailand, they will need to obtain a Foreign Business License. In order to apply for a Foreign Business Licence, an application must be filed with the Business Department, and reviewed by the Cabinet or Foreign Business Committee. The first phase will enhance protections of copyrights in the digital environment and prepare Thailand for accession to the WIPO Copyright Treaty. American investors who wish to take majority shares or wholly own businesses under FBAs Annex 3 list may apply for benefits under the U.S.-Thai Treaty of Amity. The U.S. Commercial Service, U.S. Embassy Bangkok is responsible for issuing a certification letter to confirm that a U.S. company is qualified to apply for benefits under the Treaty of Amity. The Thai government is actively seeking to address shortages of both skilled and unskilled workers through education reform and various worker-training incentive programs. The government is currently engaged in confidence-building measures with the leading insurgent group. According to the act, a business is recognized as foreign if it meets the following criteria: If it has been established under a foreign law; Firms engaging in production activities also must register with the Ministry of Industry and the Ministry of Labor and Social Development. The Stock Exchange of Thailand, the countrys national stock market, was established under the Securities Exchange of Thailand Act B.E. Other key laws governing foreign investment are the Alien Employment Act (1978) and the Investment Promotion Act (1977). Being a limited partnership or a registered ordinary partnership, the managing partner or the manager, of which is the person under (1). In May 2019, the Development of Supervision and Management of State-Owned Enterprise Act B.E. Commercial banks also provide credit guarantees, payment, remittance and financial instruments for risk management. The entry point for all country specific investment policy data. In order to learn more about the Foreign Business Licence or incorporation matters in general, please feel free to book a consultation with our experts. Medical hub and total healthcare services. Boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations. While foreign owned entities are restricted from undertaking certain business activities under the Foreign Business Act, it is possible for such companies to apply for a Foreign Business Licence in order to legally be able to do so. While the patent backlogs decreased from prior years in 2018, volumes increased again in 2019. Thailand does not have a sovereign wealth fund and the Bank of Thailand is not pursuing the creation of such a fund. In the case where there exist other laws which govern shareholding, partnership or investment of foreigners, permission or prohibition of the operation of certain businesses vis--vis foreigners or which prescribe rules in connection with the operation of businesses of foreigners, such laws shall prevail and the provisions of this Act shall not apply to matters insofar as they are specifically provided by other laws. Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. In recent years Thailand has taken steps to reform its business regulations and has improved processes and reduced time required to start a business from 29 days to 6 days. The Act broadens the definition of a business operator to include affiliates and group companies, and broadens the liability of directors and management, subjecting them to criminal and administrative sanctions if their actions (or omissions) resulted in violations. The Investment Laws Navigator is based upon sources believed to be accurate and reliable and is intended to be up-to-date at the time it was generated. Foreign majority-owned companies are subject to the FBA rule stating that the . DIP historically takes 10 to 14 months to register a trademark. ACT has 54 member organizations drawn from the private, public, and academic sectors. Among wage and salary workers, 3.5 percent are unionized and only 34 out of 77 provinces have labor unions. Foreigners operating businesses not prescribed in the Lists annexed hereto prior to the amendment or revision of categories of businesses under paragraph one shall, where such businesses are thereafter specified as the businesses the operation of which requires permission under this Act and such foreigners intend to continue the operation thereof, notify the Director-General in order to obtain a certificate in accordance with the rules and procedures prescribed in section 11. The Bank of Thailand, the countrys central bank, has respected IMF Article VIII by refraining from restrictions on payments and transfers for current international transactions. Limits on Foreign Control and Right to Private Ownership and Establishment. To our newsletter for all the latest legal news End note.). Foreign Trade Zones/Free Ports/Trade Facilitation. by virtue of a treaty to which Thailand becomes a promoter of the business. Specifically, the U.S. government and private sector have expressed concern about inconsistent application of Thailands transaction valuation methodology and the Customs Departments repeated use of arbitrary values. On March 24, 2019, Thailand held its first national election since the 2014 military coup that ousted democratically elected Prime Minister Yingluck Shinawatra. The Thai central bank is currently studying new licenses for digital-only banks, a tool meant to enhance financial inclusion and keep pace with consumer needs in the digital age. Brokerage or agency businesses, with the exception of: being a broker or an agent in the sale or purchase of securities or in services related to futures trading of agricultural commodities or financing instruments or securities; being a broker or an agent in the sale, purchase or procurement of goods or services necessary for the production or the provision of services amongst affiliated enterprises; being a broker or an agent in the sale or purchase, procurement, distribution or acquisition of domestic and foreign markets for the distribution of domestically manufactured or imported goods, which is in character the operation of international trade, with the minimum capital of one hundred million baht or upwards from foreigners, being a broker or an agent of other types as prescribed in the Ministerial Regulation. Relevant articles of the Civil and Commercial Codes do not distinguish between foreign and Thai nationals in the exercise of lease rights. Under the FBA, Foreigners are allowed to have majority voting rights and control in a Thai limited company through preference shares and weighted voting rights. Companies that have obtained special BOI investment incentives may be exempted from this requirement. The issuance of the certificate under paragraph one shall be in accordance with the rules and procedures as prescribed by the Director-General. However, in practice there are some business activities for which a Foreign Business License would never be granted and there is no guarantee you will recieve a Foreign Business Licence after application. Trading and auction sale of antique objects of Thailand or objects of historical value of the country, 8. This Act shall come into force after ninety days as from the date of its publication in the Government Gazette. The OTCC is comprised of seven members nominated by a selection committee and endorsed by the Cabinet. Thailand and the United States concluded a bilateral tax treaty in 1996. In October 2015, the country ratified the WTO Trade Facilitation Agreement, which came into effect in February 2017. However, copyright owners may record their works with DIP to establish proof of ownership. If any person opposes a filing, the receiver shall investigate the matter and approve, partially approve, or dismiss the application. The Foreign Business Act (described in detail above) governs most investment activity by non-Thai nationals. A physical office is located on the 18thfloor of Chamchuri Square on Rama 4/Phayathai Road in Bangkok. Brokerage or agency businesses, with the exception of: a. being a broker or an agent in the sale or purchase of securities or in services related to futures trading of agricultural commodities or financing instruments or securities; b. being a broker or an agent in the sale, purchase or procurement of goods or services necessary for the production or the provision of services amongst affiliated enterprises; c. being a broker or an agent in the sale or purchase, procurement, distribution or acquisition of domestic and foreign markets for the distribution of domestically manufactured or imported goods, which is in character the operation of international trade, with the minimum capital of one hundred million Baht or upwards from foreigners, d. being a broker or an agent of other types as prescribed in the Ministerial Regulation. The BOT serves the following functions: prints and issues banknotes and other security documents; promotes monetary stability and formulates monetary policies; manages the BOTs assets; provides banking facilities to the government; acts as the registrar of government bonds; provides banking facilities for financial institutions; establishes or supports the payment system; supervises financial institutions manages the countrys foreign exchange rate under the foreign exchange system; and determines the makeup of assets in the foreign exchange reserve. Almost all attacks have occurred in the three southernmost provinces of the country. 2520 (1977) or granted written permission for the operation of the business under the Industrial Estate Authority of Thailand Act, B.E.2522 (1979). Wholesale of all types with the minimum capital of each store in the amount lower than one hundred million Baht, 17. Monetary judgments are calculated at the market exchange rate. Forestry and timber processing from a natural forest, 5. Subject to section 6, section 7, section 10 and section 12: Any amendment or revision of categories of businesses in the Lists annexed hereto shall be by a Royal Decree, save for the businesses in List One or in List Two, Chapter 1, where such amendment or revision shall be by an Act. Registration documentation must be submitted in the Thai language. The Treaty allows U.S. citizens and U.S. majority-owned businesses incorporated in the United States or Thailand to maintain a majority shareholding or to wholly own a company, branch office, or representative office located in Thailand, and engage in business on the same basis as Thai companies (national treatment). IEAT has an established network of industrial estates in Thailand, including Laem Chabang Industrial Estate in Chonburi Province and Map Ta Phut Industrial Estate in Rayong Province in Thailands eastern seaboard region, a common location for foreign-owned factories due to its proximity to seaport facilities and Bangkok. Five are publicly listed on the Stock Exchange of Thailand: Thai Airways International Public Company Limited; Airports of Thailand Public Company Limited; PTT Public Company Limited; MCOT Public Company Limited; and Krung Thai Bank Public Company Limited. The FBA contains three schedules listing types of business activity and their level of restriction. to address in writing enquiries or summons requiring any person to give explanations on any facts and furnish documents or evidence necessary for factual examination; to enter premises where foreigners operate businesses during office hours for examining and ensuring the compliance with this Act, provided that written consent of the Director-General shall first be obtained, save in the case of utmost emergency; in the performance of such duties, the Registrar and competent officials shall have the power to inquire into any facts or summon any document or evidence particularly essential for factual examination from persons staying at such premises. Recently introduced technologies under this scheme include standardized QR codes for payments, blockchain funds transfers, electronic letters of guarantee, and biometrics. British Chamber of Commerce Thailand,(Draft FBA and Objections), This page was last edited on 25 November 2022, at 12:36. The Director-General will then issue the license within 15 days after the approval date. The National Credit Bureau of Thailand (NCB) provides the financial services industry with information on consumers and businesses. In 2019 the government issued a new regulation to ensure that seasonal employees in agriculture, fishing, forestry, and husbandry businesses have access to the governments accident compensation fund. The FBA's restriction on "services" is the most . 2542 (1999) ("FBA"). Hotel business, with the exception of the hotel management service, 20. In order to address the long patent pendency and backlogs, DIP hired 91 patent and trademark examiners in recent years. Under this program, foreigners can be granted a maximum four-year visa to work in Thailand without having to obtain a work permit or re-entry permit. Foreign investors are allowed to participate in privatizations, but restrictions are applied in certain sectors, as regulated by the FBA and the Act on Standards Qualifications for Directors and Employees of State Enterprises of 1975, as amended. Gratuity payments to civil servants responsible for regulatory oversight and enforcement remain a common practice. In 2017, the Thai government launched a regulatory guillotine initiative to cut down on red tape, licenses, and permits. In the case where the business of the foreigner who is promoted under the law on investment promotion or granted written permission for the operation of the industry or the operation of trade for export under the law on the Industrial Estate of Thailand or under other laws is the business specified in List Two or List Three annexed hereto, such foreigner shall notify the Director-General in order to obtain a certificate. In the case of violation of the order of the Court, the violator shall be liable to a fine at the daily rate of ten thousand Baht to fifty thousand Baht throughout the period of the violation. Business activities that fall under list 1, 2 or 3 of the act are subject to the limitations imposed by the act. DIP recently adopted a new system of voluntary registration of copyright (collective management) agents to curb illegal activities of rogue agents.

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