No requirement for foreign licence in 3 businesses

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