The new Ministerial Regulation lists businesses as not being subject to the application for Foreign Business Permission which came into force on 23 June 2017. This further updates the list of businesses not subject to the requirement of obtaining a Foreign Business License. This is especially relevant to foreign nationals who are going to operate certain businesses in Thailand.
This new regulation is expected to simplify the process of establishing businesses for foreigners in Thailand.
The following areas of business are exempted:
- Financial institutions business, businesses pertaining to or necessary for the financial institution business operations, other businesses of financial institutions and businesses of companies belonging to the financial business groups of financial institutions under the law on financial institutions (including commercial banking business; service businesses in the form of representative offices of banks; Shariah-compliant financial services; Being a representative of financial institutions; cash deposit services with the condition to withdraw on demand and escrow businesses; engaging in private repurchase transactions; being an agent that receives applications and collects premiums or service fees for an export guarantee and providing credit guarantee to customers; provision of services in relation to financial businesses to financial institutions, companies belonging to the financial business groups, the Bank of Thailand and governmental institutions; leasing immovable property; being a factor that purchases or receives loan receivables; cash management services; services with respect to preparation of documents concerning customers’ businesses; debt collection or application acceptance agency services; and hire purchase and leasing services).
- Financial institutions business, businesses pertaining to or necessary for the financial institution business operations, other businesses of financial institutions and businesses of companies belonging to the financial business groups of financial institutions under the law on financial institutions (including commercial banking business; service businesses in the form of representative offices of banks; Shariah-compliant financial services; Being a representative of financial institutions; cash deposit services with the condition to withdraw on demand and escrow businesses; engaging in private repurchase transactions; being an agent that receives applications and collects premiums or service fees for an export guarantee and providing credit guarantee to customers; provision of services in relation to financial businesses to financial institutions, companies belonging to the financial business groups, the Bank of Thailand and governmental institutions; leasing immovable property; being a factor that purchases or receives loan receivables; cash management services; services with respect to preparation of documents concerning customers’ businesses; debt collection or application acceptance agency services; and hire purchase and leasing services).
- Asset management services business under the law on asset management companies.
- Representative and regional offices.
- Any service business where a state agency or a state enterprise is a party.
Under the simplified procedure, the foreign investors are still required to submit to the Ministry of Commerce a notification confirming the place of safekeeping of the account and which supporting documents relate to the relevant foreign juristic person operating business in Thailand.
The relevant investors would be able to obtain the certificate within a couple of days from the date of notifying the official. However, relevant investors should be aware that this simplified procedure is limited to the Ministry of Commerce level and not designed as a one-stop service. Usual procedures with the Revenue Department, Social Security Office, Immigration Office, etc. must still be handled separately.
DFDL Contributor:
Suradech Hongsa
Senior Legal Adviser
suradech@dfdl.com
