:: Legal Issues for Foreign Investors : 1. Foreign Business Act
Foreigners in Thailand derive their legal rights primarily from the domestic laws of Thailand. In general, foreigners enjoy the same basic rights as Thai nationals.
Restrictions on foreign ownership in commercial banks, insurance companies, commercial fishing, aviation businesses, commercial transportation, commodity export, mining and other enterprises exist under various laws. In addition, Thai participation will frequently be required in those activities seeking permission from the BOI.
B. The Foreign Business Act
The Foreign Business Act of 1999, which became effective on March 4, 2000, repeals and replaces the 1972 National Executive Council Announcement 281, better known as the Alien Business Law. The Act serves to define an "alien," and identifies the scope of foreign participation in business in Thailand.
An "alien" is defined as:
C. Businesses Subject to Regulation
Businesses that initiate activities that fall under Lists 1, 2, or 3 of the Foreign Business Act (listed below) are subject to the limitations imposed by the Act.
Activities that fall under List 1 are strictly prohibited to aliens.
Businesses that are covered by List 2 are prohibited to aliens unless specific permission is granted by the Commerce Ministry, by and with an appropriate Cabinet resolution. Alien juristic entities allowed to engage in List 2 activities must meet the following two conditions:
Activities in List 3 are prohibited to aliens unless permission is granted by the Director General of the Department of Commercial Registration, Ministry of Commerce, by and with the approval of the Foreign Business Board.
An alien can engage in businesses in Lists 2 or 3 of he is a promoted investor in accordance with either the Investment Promotion Act, the Industrial Estate Authority of Thailand Act, or other laws.
List 1 - Businesses in which alien participation is not permitted
List 2- Businesses concerning national security or safety with an adverse effect on art and culture, customs, or native manufacture/handicrafts, or with an impact on natural resources and the environment.
o Firearms, ammunition, gunpowder, and explosives
o Components of firearms, gunpowder, and explosives
o Armaments and military vessels, aircraft, or conveyances
o All kinds of war equipment or their components
General Information, Taxation in Thailand part 1
Taxation in Thailand part 2
Tax annual personal permit, Other Taxes
Tax Courts & Customs Duties
Frees trade zones, warehouses and its Qualifications
Benefits: Importation, Goods exempt from duty payment
Import and Export Regulations, Procedures for establishing a company
Types of Business Organisations,
Regional Offices and description
Foreign Business Act list 1-2
Foreign Business Act list 3
Miscellaneous Issues, Licenses
Work Permits, Special Cases, Procedures
Required Documentation, Permitted Activities, Restricted Occupations
Visas and Immigration Law, Non-Immigrant Visa
International Banking Facilities, Conditions for Participating in BIBF
Stock Exchange, Guidelines for Equity Holding in Financial Institutions