Obtain a Foreign Business License When Your Activity Is Restricted to Foreigners
The Foreign Business Act B.E. 2542 restricts foreigners from carrying on certain businesses in Thailand. A Thai-registered company is treated as foreign when foreigners hold half or more of its capital. Where the activity is listed in the Act’s schedules, the foreign company needs permission before it starts, and operating without it is an offense.
- List 1: businesses closed to foreigners for special reasons, such as newspapers, radio and television, rice and crop farming, animal rearing, fishing in Thai waters, antiques trading and land trading. These cannot be licensed.
- List 2: businesses affecting national security, arts and culture or natural resources. Permission requires the Minister’s approval with Cabinet consent.
- List 3: businesses in which Thais are not yet ready to compete, including accounting, legal, architecture and engineering services, construction, brokerage, advertising, hotels, tour services, food and beverage, retail below THB 100 million in total capital, and wholesale below THB 100 million per shop. Permission comes from the Director-General with the committee’s consent.
- Timeline: the decision is due within 60 days of the application, extendable by up to 60 days for the Cabinet, and the license is issued within 15 days of approval.
- Conditions: the license is granted for a specific activity and may carry conditions set by ministerial regulation.
Requirement of an FBL Application
- A clear description of the planned business and the list under which it falls.
- Company registration documents, shareholder details and the proposed capital.
- A business plan and the supporting information the authority asks for.
- Proof of how the company will operate, including premises and staff.