Is your company BOI promoted? Do you need an ‘automatic’ authorization? Then you must obtain a foreign business certificate in Thailand. It is an automatic authorization, where a foreigner can operate a restricted business. It can be on the basis of a Board of Investment promotion in Thailand or an international treaty. Often many business owners confuse a foreign business certificate with a Thai foreign business license. But, you must note that both hold different values in terms of their authorization and function.
A Foreign Business Certificate is a special permission for foreign businesses. Whereas a foreign business license is applicable for all foreign businesses in Thailand that are planning to engage in a restricted business industry as per the Foreign Business Act. Now that you already know what a foreign business certificate is, you must also know about the foreign business license. The latter will be granted on the basis of the benefits your proposed business will grant to Thai society and economy. Let’s have a look at some of their salient points;
Capitalization
Under the Foreign Business Act, both forms are subject to the same minimum capitalization requirement. It is 2 billion baht per unrestricted business activity and 3 billion per restricted business activity. However, there are differences when BOI Thailand issues a Foreign Business Certificate to promote the business. Moreover, businesses that are registered under the Thai-US Amity Treaty are subjected to certain rules when it comes to transferring capital from overseas.
Restrictions
Section 13 of the Foreign Business Act
A foreign company may not receive a Foreign Business License or a Foreign Business Certificate if more strict law regulates foreign investment. To cite an example, the Tourism Business and Tour Guide Act of 2008 forbids foreign investment in the tourism industry.
However, the Foreign Business Certificate Thailand is the preferable authorization. It allows a foreigner to obtain authorization on the basis of their eligibility in bilateral treaties like the US-Thai Amity Treaty. Note that Thailand holds trade treaties with more than 41 nations. These treaties grant foreigners the right to function in restricted businesses. Therefore, obtaining the certificate wouldn’t be a difficult job.
So are you an expat in Thailand or a foreigner willing to do business in the kingdom? It will be wise that you consult with a reliable corporate law firm in Thailand. Email us your requirement at [email protected] so that we can help you throughout the process.
