Remove three businesses from the list of those businesses for which a foreign business licence is required

The decision of the Ministry of Commerce (“MoC”) to propose removing the following three businesses from the list was made to facilitate foreign investment in Thailand.

Keywords: Mazars, Thailand, Ministry of Commerce, Foreign investment, Licence, Telecommunications, software, IT security, Treasury centre

21 December 2020

A draft Ministerial Regulation was submitted to the Cabinet for consideration and approval.

Details of the three businesses are as follows:

  • Telecommunications licensed under category 1 of the telecommunication laws – Telecommunications where the business operator does not have its own telecommunications network and the services can be freely provided.
  • Treasury centre under the exchange control laws for subsidiaries and affiliated companies – It is not clear if the MoC will adopt criteria for defining a related-party transaction as applying to the provision of a domestic loan, the lease of office space, the provision of advice and support for administration, marketing, human resources, and information technology to subsidiaries and affiliated companies.
  • Software development by legal entities registered in Thailand – Software development covers only the following four areas:
    • the development and provision of services related to analysis and linkage software for data management.
    • the development of information technology security and cybersecurity software.
    • the development of software for controlling or connecting high-tech equipment and managing business processes; and
    • the development of software for supporting manufacturing processes.

Reference: Department of Business Development