Thai Laws for Foreign Businesses

Foreign businesses are allowed in Thailand but they are subject to certain regulations. Failure to comply with these rules will lead the Thai government to penalise your business. Imprisonment, fines, and deportation may be imposed. As such, if you are a foreign national and want to start your business in Thailand, here are the important Thai regulations that you need to be aware of.

First and foremost, foreign businesses in Thailand are regulated by the 1999 Foreign Business Act or FBA. The act has divided businesses in the country into categories one, two, and three. Category one businesses are not open to foreigners at all, unless there is a treaty or special law that will exempt you. Accounting, architecture, and law businesses are examples of category one. As for category two, which includes tour agencies, printing, and fishing businesses, it is also closed to foreigners unless the Board of Investment says otherwise. Finally, category three businesses such as wholesale and retail businesses are the ones open to foreigners. Before you put up your company though, you are required to have an Alien Business License.

If you really want to engage in restricted businesses, you can do so as long as you only own up to 49% of the shares while your Thai partner who is not a nominee owns the rest of the shares. A nominee by the way, means the person whose name is used to register the company, but that person does not actually own the business or did not put up the capital.

So there you go - the important Thai regulations that apply to foreign businesses. We hope you found them useful and good luck with your ventures.

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