TH-AUS Free Trade Agreement

Since Thailand and Australia has prepared the Thailand-Australia Free Trade Agreement (TAFTA), the persons who conduct the business according to the attachment of the Foreign Business Act B.E.2542 (1999) and who are under the TAFTA conditions can request for the business operations certificate from the Director-General of the Department of Business Development (DBD).

Criteria according to the Thailand – Australia Free Trade Agreement

Qualifications of Persons who have the Right to Request for Business Operations Certificate under the TAFTA must have the following qualifications:

  • Qualifications
    1. Be the juristic person established according to Thailand’ s law as registered ordinary partnership or limited partnership or company limited
    2. The authorized directors must be Thai or Australia people and in case that the juristic person is registered ordinary partnership or limited partnership, the manager or managing partner must be Thai
    3. The company’s shareholders must be
      • All Australian people or Australian and Thai people
      • The established company according to Australian’s law must have more than 50% of Australian shareholders.
      • The proportion of shareholding persons must be in compliance with the conditions of type of businesses under Thai – Australian Free Trade Agreement
    4. The ratio of debt to equity for not exceed 3 : 1

Business under the Thailand – Australia Free Trade Agreement

There are 18 businesses under the TAFTA so when considering types of businesses and the attachments of the Foreign Business Act B.E.2542 and number of shares that Australian people can hold under this agreement, it turns out that there are 12 businesses that must request for certificate and there are 6 businesses that do not have to request for certificae

12 Businesses that must request for certificate

  • Mining

    Area

    Land and Marine Mining

    Conditions

    1. Must be approved by Ministry of Industry
    2. Must have two – fifth of directors that are Thai people

    Australian people must hold shares

    not exceed 60%

  • Construction

    Area

    Public Utilities Construction / Transportation Construction that uses special equipment, machinery, technology or expertise

    Conditions

    1. Must be Public Utilities Construction / Transportation Construction that uses special equipment, machinery, technology or expertise
    2. Have paid – up capital of at least 1,000 million bath

    Australian people must hold shares

    100%

  • Hotel business

    Area

    Luxurious hotel and resort service

    Conditions

    1. Only for the investment with the paid – up capital of at least 800 Million Bath
    2. At least 100 hotel rooms

    Australian people must hold shares

    not exceed 60%

  • Restaurant

    Area

    Full range of restaurant

    Conditions

    1. Must have the total area of at least 450 square meters
    2. Have paid – up capital of at least 50 million bath

    Australian people must hold shares

    not exceed 60%

  • General Consulting Service

    Area

    for ROH / branch or ROH’s subsidiaries

    Conditions

    Must be service for ROH / branch or ROH’s subsidiaries

    Australian people must hold shares

    100%

  • Meeting Hall

    Area –

    Conditions

    1. Must have the total area of at least 4,000 square meters
    2. The area within the biggest meeting hall must be at least 3,000 square meters

    Australian people must hold shares

    not exceed 60%

  • International Product Exhibition Center

    Area –

    Conditions

    1. Must have the total area of at least 50 Rais
    2. Must have area within the building of at least 25,000 square meters

    Australian people must hold shares

    not exceed 60%

  • Wholesale and Retail service

    Area

    relevant to the sale and installation of the products manufactured by the Australian juristic person established in Thailand

    Conditions

    1. Wholesale and Retail with installation service
    2. The products is manufactured in Thailand by such juristic person (Sale and installation agent)

    Australian people must hold shares

    100%

  • Education / Educational Institutes

    Area

    with science and technology expertise such as life sciences, bio – technology and nano technology

    Conditions

    1. Expertise in science and technology such as life sciences, bio-technology and nano technology
    2. Located outside Bangkok and Metropolitan areas
    3. At least 50% of the University council directors are Thai

    Australian people must hold shares

    not exceed 60%

  • Fun Park and zoo service

    Area –

    Conditions

    1. Only for the investment with the paid – up capital of at least 1,000 Million Bath
    2. At least 200 Rais of total areas

    Australian people must hold shares

    not exceed 60%

  • Aquatic animal park service

    Area –

    Conditions

    1. Only for the investment with the paid – up capital of at least 200 Million Bath
    2. At least 10 Rais of total areas
      Australian people must hold shares

    not exceed 60%

  • Pier and Anchor service for tourism ships

    Area –

    Conditions

    Only in the case of having ship lifting equipment, pier and maintenance service center

    Australian people must hold shares

    not exceed 60%

6 Businesses that do not request for Certificate

  • Retail

    Area
    Sale of Telecommunication Equipment

    Conditions –

    Australian people must hold shares

    Less than 50%

  • Wholesale

    Area
    Sale of Telecommunication Equipment

    Conditions –

    Australian people must hold shares

    Less than 50%

  • Telecommunication Consulting Service

    Area –

    Conditions –

    Australian people must hold shares

    Less than 50%

  • Leasing service of Telecommunication Station Equipment

    Area –

    Conditions –

    Australian people must hold shares

    Less than 50%

  • Database Access Services

    Area –

    Conditions

    Only for the service by using the public telecommunication network under the supervision of the National Telecommunication Commission of Thailand

    Australian people must hold shares

    Less than 25%

  • Domestic Very Small Aperture Terminal VSAT

    Area –

    Conditions

    Only for the service by using the public telecommunication network under the supervision of the National Telecommunication Commission of Thailand and service that performs according to built-transferred-operated identified by National Telecommunication Commission of Thailand

    Australian people must hold shares

    Less than 50%

Request for Business Operations Certificate

  • Requirements
    1. Form to request the certificate Tor.6
    2. Explanations of type of business
    3. Evidence of juristic person registered in Thailand demonstrating names, capital, objective, location, name and nationality of directors and authorized directors
    4. Letter to inform the proportion of shareholding between Thai people and foreigner, number of shares, type of shares that people with Australian nationality hold.
    5. In case that the shareholders or major partners of persons who request for certificate are juristic person, shall submit the evidence or documents for proof of juristic persons demonstrating name, capital, objective, location, name and nationality of directors and authorized directors, name and nationalities of shareholders or details of partners.
    6. Nationality certificate of persons who request for certificate in order to ask for the right from the Embassy of the country that is the party.
    7. Copy of passport or foreigner’ s ID card
    8. Map of business locations in Thailand
    9. Letter of power of attorney in case that other persons perform the duties
  • Procedures
    1. Provide the company’s documents and requirement documents (At least 2 weeks)
    2. Prepare the application (At least 2-3 working days)
    3. Submit the application and supporting documents to DBD (1-2 working days)
    4. The issuance of certificate must be within 30 days from the date obtaining the letter from foreigners
  • Government Fees

    22,000 THB

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