How to Get a Foreign Business License in Thailand

Thai law restricts you from establishing a foreign-owned business in Thailand in certain industries reserved for Thai nationals, but you can obtain a Thai Foreign Business License to get around this. This license will allow you to operate legally in Thailand while conducting business activities that would otherwise be restricted for foreigners. This article will explain what a Foreign Business License is, how you can apply, and the benefits involved.?

What is a Foreign Business License??

Some industries and business operations are only permitted to Thai nationals as described in the Foreign Business Act (FBA). If you operate a foreign-owned business and you want to perform some of these activities legally, you must apply for a Foreign Business License (FBL).?

Business operations and industries restricted only to Thai nationals are separated into 3 different categories:

• Category 1 Businesses: These kinds of companies can only be managed by Thai nationals. Examples include farming, real estate, forestry, marine wildlife fishing, and newspaper publications.
• Category 2 Businesses: These involve activities connected to national safety and culture such as public security, arts, culture, tradition, customs, and the environment.
• Category 3 Businesses: These include businesses where Thai entrepreneurs aren’t yet able to compete with foreign competitors to provide the services that the country needs. Examples include hotels, tourism, wood production, legal services, construction, public auctions, and cultivation.?

According to Thai business law, foreigners cannot partake in business activities under category 1. If your business falls under categories 2 or 3, you can own and operate it provided you’re fully licensed. You must also get permission from the correct government entity.

• Category 2 businesses must be reviewed by the Minister of Commerce and approved by the Cabinet. You also need to ensure that Thai nationals or juristic persons own 40% of your business’ capital.
• Category 3 businesses must be assessed by the Director-General of the Department of Business Development and approved by the Foreign Business Committee.?

Benefits of a Foreign Business License in Thailand

The Foreign Business License offers a multitude of different perks that make it vital to your business’s success. Benefits of having a foreign business license include:

• Being able own and operate a restricted business as a foreigner legally in Thailand?
• Ability to enable foreigners to possess more than 49% of your business
• Strengthening of the overall credibility of your business
• Expansion of your company’s scope of operations for better opportunities

Requirements for a Foreign Business License

Before applying, you need to meet certain requirements to be eligible. Failure to meet these conditions could lead to delays or an outright rejection of your application. The requirements for an FBL include:

• Be at least 20 years old
• Be a resident of Thailand or hold a visa allowing for a legal stay in Thailand
• Never have been declared mentally incompetent or quasi-incompetent?
• Not bankrupt?
• Have no criminal offense or imprisonment on file
• Never had a Foreign Business License revoked
• Meet the minimum capital requirements:

Aside from making sure you qualify for this license, you also need to submit several documents:

• Copy of the certificate labeling you as the “juristic person”?
• Copy of your passport or ID card
• A certificate proving you meet the qualifications and aren’t forbidden from owning a business
• A map or address of your business
• A document detailing the type of company you’re setting up
• Financial statements of the past 3 years (both in English and Thai)
• Power of attorney (if you’re appointing someone on your behalf)
• Copy of your house registration, residential certificate, or permission to stay in Thailand temporarily at the request of a representative

How to Apply for a Foreign Business License

Once you have all the documents prepared, you can progress to the next stages of your application. The remaining steps you need to go through consist of the following:

1. Submit your documents to the Foreign Licensing Department, a division located in the Thai Ministry of Commerce.?
2. A member of that department will be assigned to review your application, provided your business is acceptable and follows the FBA guidelines.
3. After being approved, you will be granted the Foreign Business License within approximately 15 days.
4. Collect your license and you can begin business activities immediately.

After successfully earning an FBL, it's still important to comply with all the conditions on your license and report regularly to the Foreign Licensing Department. Failure to do so can result in your license being revoked.

Foreign Business License vs Foreign Business Certificate: What’s the Difference?

A Foreign Business Certificate (FBC) is often confused with an FBL, given their similarities. Both of these enable foreigners to perform business activities usually restricted only to Thai nationals. However, there are some key differences.?

Unlike the FBL, the FBC is issued only under certain conditions. It is automatically granted through an international treaty (such as the US Treaty of Amity) or by applying for promotion via the Thailand Board of Investment (BOI). The Foreign Business License, while more difficult to acquire and slightly more restrictive, is available to all foreign businesses and only requires a separate application.?

Contact Siam Legal for for Professional Assistance with Acquiring a Foreign Business License in Thailand

Obtaining a business license involves completing a long and tedious application, but you don’t have to go it alone. Reach out to Siam Legal and our experienced Thai Corporate Lawyers will provide expert support to ensure you can swiftly and successfully establish your company and get it licensed.

With over 20 years of experience in helping foreigners register and set up their companies, we have the necessary skills needed to provide advice and guide you throughout your Foreign Business License application to maximize your chances of approval.?

Contact Siam Legal immediately to get started on applying for your Foreign Business License and open up new business opportunities for your company.?