Changes to the Foreign Business Act Proposed
The Department of Business Development (“the DBD”) has decided to propose the removal of the following five service businesses from List Three* of the Foreign Business Act, 2542 B.E. (1999 A.D.) (“the FBA”).
Keywords: Mazars, Thailand, Legal, FBA, DBD, Accounting Services, Rental Services, Loans, Advisory Services
26 July 2018
- Providing accounting services to affiliates and subsidiaries;
- Providing legal services to affiliates and subsidiaries;
- Providing rental services with utilities to affiliates and subsidiaries;
- Providing loans to affiliates and subsidiaries; and
- Providing advisory services to affiliates and subsidiaries.
The DBD’s decision to propose removing these businesses was made to facilitate foreigners conducting business in Thailand. Currently, under the FBA, foreigners who wish to conduct the five service businesses mentioned above must apply for a foreign business licence before starting such a business in Thailand, and the Foreign Business Committee must approve the application.
The DBD expects a new regulation removing these five businesses from List Three of the FBA to come into effect in September.
Therefore, after the new regulation is in effect, foreigners who wish to conduct such businesses will no longer have to apply for a foreign business licence to do so.
(*) Businesses under List Three of the FBA are restricted businesses. No foreigner conducts such restricted businesses unless obtaining permission from the Director-General with the approval of the Foreign Business Committee.