According to the Foreign Business Act BE. 2542 (1999) (FBA), foreigners are prohibited from operating some categories of businesses, and some categories of businesses can be operating by obtaining a licence (FBL) or a certificate (FBC) permitted by the Director – General of the Department of Business Development (DBD) with the approval of the Committee.
Basically, foreign companies are allowed to operate the businesses in the List Three of Annexed to Foreign Business Act, B.E. 2542 (1999) by obtaining the Foreign Business License (FBL) before its operation only.
Is your company a Foreign Company?
The FBA defines the definition of foreiner or foreign company according to the Section 4 the “foreigner” means as follows:
- Natural person not of Thai nationality.
- Juristic person not registered in Thailand.
- Juristic person registered in Thailand having half or more of its capital shares held by person or juristic person as mentioned in (1) or (2).
- Juristic person registered in Thailand having half of more of its capital shares held by (1), (2) or (3).
What kind of business that you can operate according to the FBA?
There are 21 businesses that Thai people do not have prompt operating abilities to compete with foreigners under List Three Annexed to Foreign Business Act, B.E. 2542 (1999) therefore foreign companies must obtain the license (FBL) before the operation.
What is the FBL?
The FBL (Foreign Business License) is the license for business activities of foreign company who are not qualified by Treaty or Investment Promotion Law in Thailand.
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Requirements
- The minimum capital of each business category must be 3MB
- The minimum capital must not less than 25% of the average per year of three year estimated
expenditure - The minimum capital must be brought or remitted into Thailand
- The minimum capital must be kept up until stop operating
a business in Thailand, ie the minimum capital can be retained in various forms such as fixed assets or current assets - At least 1 foreign director who must have a domicile in Thailand
- The high technology or innovation is brought to the business activity in Thailand
- The ratio of the capital and loans to be used in the permitted business must not exceed 1:3 i.e. while capital is 100 Baht, business loan cannot be exceeding 300 Baht
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Procedures
- Provide the Estimiated Buiness Plan for the next 3 year (At least 1-2 months)
- Prepare the FBL application along with company’s documents (At least 2-4 weeks)
- Submit FBL application and supporting documents to DBD (1 day)
- DBD will make an appointment for the Business Interview (At least 2-4 weeks)
- DBD will conclude the application details to the Sub-Committee and Committee of Foreign Business for an approval. (At least 1-2 months)
- After the Director- General’s approval, DBD will notify the applicant and issue the license within 15 days.
- Operating business can be done after obtaining the license.
Note
In case of disapproval, written notification will be sent to an
applicant within 15 days and the applicant is entitled to appeal to the
Minister of Commerce within 30 days (no application form is required). It
can be written as a letter by submitting to the Department of Business
Development. The appeal consideration period will not exceed 30 days. -
Government Fee
22,000 THB – 252,000 THB.
What is the FBC?
The Foreign Business Certificate (FBC) is the business certificate of foreign company who can obtain the privilege under the Treaty of Amity or the Investment Promotion Law in Thailand.
Basically, the foreign company who is established in Thailand with 100% foreign ownership is required to apply for the Foreign Business License (FBL) before operating business according to the Foreign Business Act B.E. 2542 (1999). However, the foreign company who operates the business under the criteria of Treaty of Amity or Investment Promotion Law is required to obtain the Foreign Business Certificate (FBC) only.
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Requirements
- Certificate grantees under the Treaty or Investment Promotion
- Minimum capital not less than 25% of the average per year of three year estimated expenditure., or 25% of capital has to be remitted into Thailand, except certificate grantees under the Investment Promotion Certificate.
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Procedures
- Provide the company establishment’s documents, translations and Financial Statement (if any).
- Prepare and complete application forms together with supporting documents
- Submit application and supporting documents to the DBD and
- the Director-General will issue the certificate within 30 days of the application submission date.
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Government Fee
22,000 THB
Our Services
- Providing FBL application and supporting documents
- Review Business Plan including Income and Expense Plan
- Attend the business interview and assist project manager to present the Business Plan to DBD
- Providing and apply for Foreign Business License
- Providing and report the project operation to DBD
- Translation
- Legalization by Ministry of Foreign Affair
- Legalization by Embassy
- Power of Attorney
- Notary Public
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