|
| Doing
Business in Thailand |
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:
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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. |
| •
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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 need a permit, an Alien
Business License, before beginning business activities.
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