Know your Eligibility for Foreign Business License in Thailand

Are you thinking of investing in Foreign Business in Thailand? Then, a Foreign Business License is compulsory to move ahead with the proceedings. Eventually, you can refer to this article to check your eligibility for a Foreign Business License in Thailand.

What is a Foreign Business License in Thailand? 

A Foreign Business License (FBL) is a licence granted to companies with a majority foreign ownership or foreign investors. Confirmedly, foreign investors must wish to engage in business activities that are limited to foreign nationals under Thai law.

Foreign Business License in Thailand Requirements

A foreigner seeking an FBL must meet the conditions outlined in Section 16 of the Foreign Business Act (FBA). For your deeper understanding, the primary conditions are as follows:

• Attain the age of 20 years at the time of the FBL Application.
• Have a residence in Thailand or have permission for temporary entry to Thailand under the law of immigration.
• There should not be any history of being incompetent or quasi-incompetent.
• History of bankruptcy can lead to the cancellation of the application.
• Ensure that you do not have any history of getting penalized.  No record of punishment by a court judgement to pay a fine to settle any offensive activity is mandatory. Assure that you are discharged 5 years prior to the date of application of FBL.
• No history of imprisonment for a period of not less than five years prior to the date of the application. 
• History of trade offences under the Penal Code along with loan dishonesty to the public under the Immigration Rule will lead to disqualification. However, you can be eligible on discharge for a period of not less than five years prior to the date of the application for the licence.
• No cases of a licence granted under the FBA or the National Executive Council Notification No.281 revoked within five years prior to the date of the application for the FBL.

Note that you will not be eligible for a foreign business license if you fail to comply with or violate any of the above-mentioned conditions. Henceforth, you must know about the types of business activities permitted by the Foreign Business License in Thailand.

Activities under the Foreign Business Act of Thailand

The Foreign Business Act recognizes three types of activities under the FBL:

Firstly, they are the types of Business Activities not permitted to foreigners

Secondly, the Business Activities permitted to foreigners but under certain conditions

And finally, the types of Business Activities in which Thai Nationals are not willing to compete with foreigners

Furthermore, a Thai company is exempt from the FBA if Thai nationals own the majority of its stock. However, foreigners are permitted to own up to 49 per cent of a Thai company engaged in a restricted market.

Along with this, a corporation with a majority of foreign shareholders must apply for the FBL’s permission to engage in restricted businesses.

Primarily, you can apply on any of the above business activities with major participation of Thai Nationals in the share of your business. Secondly, you must know about the required documents for the application process of FBL.

Documents Required for Foreign Business License in Thailand

You must have all these documents to apply for the Foreign Business License:

• A copy of a juristic person’s certificate.
• Copy of the foreigner’s passport or identity paper, or the representative’s identification cards.
• Applicant’s certification that the applicant, director, manager, or a representative appointed meets the requirements without section 16 prohibition.
• Map showing the location of the company.
• License application declaration form of the company.
• You will need the following documents if an authorized person represents you: 

1. Copy of the register of house,
2. Certificate of residency in Thailand, or proof of the representative’s permission to enter Thailand for a temporary stay

Satisfying Criteria for Foreign Business License in Thailand

You must know that the Royal Thai Government considers few conditions to grant permission to foreigners to work in businesses. Evidently, Section 5 of the Foreign Business Act of Thailand states these conditions.

1. Effects on national safety and defence, both positive and negative
2. The country’s economic and social growth 
3. Public order or good morality
4. National Values in the arts, culture, rituals, and practices 
5. Conservation of natural resources
6. Energy conservation and environmental protection
7. Consumer protection is essential.
8. Projects of various sizes
9. Generate employment opportunities  
10. Transfer of technology
11. Investing in research and development

Now as you know the nitty-gritty of Foreign Business License in Thailand, you can easily judge your eligibility for the same. For your information, foreign companies have greater scope and access to the business by possessing a Foreign Business License. Therefore, it is critical that you obtain the licence before participating in the prohibited activities. Please contact Konrad Legal at [email protected] for assistance in obtaining a Foreign Business License.