|
Guide
to Doing Business in Thailand
Legal
Issues for Foreign Investors \ Alien Business Law
 Note:
The Ministry of Commerce has proposed a Foreign Investment Law (FIL)
that has been approved by the cabinet and that is currently in the
parliamentary process. If approved, it will replace the Alien Business
Law.
The
Alien Business Law of 1972 primarily serves to define and narrow
the scope of foreign participation in Thai business activities.
An alien is defined as a person or company without Thai nationality
and includes:
| •
|
A
company with at least one-half of shares in its registered capital
being held by aliens or companies in which the capital contribution
by aliens exceeds 50 percent. |
| •
|
A
company with more than half of the number of shareholders, partners
or members being alien, regardless of their capital investment. |
| •
|
A
limited partnership, or a registered ordinary partnership in
which the managing partner is an alien. |
Businesses
activities initiated in Thailand fall under categories A, B and
C of the Alien Business Law and are subject to restrictions regarding
alien participation.
Businesses
in Categories A and B are closed to aliens. Aliens enterprises granted
promotional privileges by the Board of Investment are permitted
to engage in a Category B business.
Businesses
in Category C are open to alien involvement. Aliens wishing to engage
in Category C business activities must submit an application to
the Department of Commercial Registration for a permit, an Alien
Business License, before beginning business activities.
Category
A – Closed to Aliens
Agricultural
Businesse
| •
|
Rice
farming |
| •
|
Salt
farming, including manufacture but excluding rock salt mining |
Commercial
Businesses
| •
|
Internal
trade in local agricultural products |
| •
|
Land
trade |
Service
Businesses
| •
|
Accounting |
| •
|
Law |
| •
|
Architecture |
| •
|
Advertising |
Brokerage
or agency
| •
|
Auctioneering |
| •
|
Barber,
hairdressing, and beautification |
Other
Businesses
Category
B - Closed to Aliens unless promoted by the Board of Investment
Agricultural
Businesses
| •
|
Cultivation |
| •
|
Orchard
farming |
| •
|
Animal
husbandry, including silk worm raising |
| •
|
Timbering |
| •
|
Fishing |
Industrial
and Handicraft Businesses
| •
|
Rice
mill |
| •
|
Manufacture
of flour from rice field crops |
| •
|
Manufacture
of sugar |
| •
|
Manufacture
of beverage, with and without |
| •
|
Alcoholic
blending |
| •
|
Manufacture
of ice |
| •
|
Manufacture
of drugs |
| •
|
Cold
storage |
| •
|
Wood
processing |
| •
|
Manufacture
of product from gold, silver, niello, or bronze |
| •
|
Manufacture
of casting of images of Buddha and manufacture of alms bowls |
| •
|
Manufacture
of wood carvings |
| •
|
Manufacture
of lacquer ware |
| •
|
Manufacture
of all types of matches |
| •
|
Manufacture
of lime, cement, or cement by-products |
| •
|
Stone
blasting or crushing |
| •
|
Manufacture
of plywood, wood veneer, chip-board or Hard-board |
| •
|
Manufacture
of garment or shoes except for export |
| •
|
Printing
press |
| •
|
Newspaper
publication |
| •
|
Silk
combing, silk weaving or printing of pattern or Silk material |
| •
|
Manufacture
of products from silk, silk treads or silk cocoon. |
Commercial
Businesses
| •
|
Retailing
of all products except those specified in Category C (Below) |
| •
|
Sale
of mining products except those specified in Category C |
| •
|
Sale
of all types of food and beverage except those specified in
Category C |
| •
|
Sale
of antiques, period antiques or works of art. |
Service
Businesses
| •
|
Tour
agencies |
| •
|
Hotel
business except hotel management |
| •
|
Business
under the law on service-providing establishments |
| •
|
Photography,
photographic developing and printing |
| •
|
Laundry |
| •
|
Tailoring
and dressmaking |
Other
Businesses
| •
|
Internal
transport by land, water, or air. |
Category
C – Open to Aliens
Business
in Commerce
| •
|
Wholesales
of all types of products within the country except those specified
in Category A (Above) |
| •
|
Export
of all types of products |
| •
|
Retailing
machinery, equipment and tools |
| •
|
Sale
of food and beverage for the promotion of tourism |
Business
in Industry and Handicrafts
| •
|
Manufacture
of animal feeds |
| •
|
Extraction
of vegetable oil |
| •
|
Manufacture
of embroidering and knitting products including weaving, dyeing,
and pattern printing |
| •
|
Manufacture
of glass containers including light bulbs |
| •
|
Manufacture
of crockery |
| •
|
Manufacture
of writing and printing paper |
| •
|
Rock
salt mining |
| •
|
Mining |
Business
in Services
| •
|
Except
for those specified in Category A and Category B |
Other
| •
|
Other
constructions except those specified in Category A |
Back
to Top
|
