Changes to Foreign Business Licence Requirements

Keywords: Mazars, Thailand, Legal, Ministry of Commerce, Foreign Business Act, Foreign Business License, Financial Institution, Branch, Representative Office, Regional Office, Budget Procedures Act, Royal Gazette

4 July 2017

The Ministry of Commerce allows foreigners to conduct the service businesses set out in List 3 (21) of the Foreign Business Act without having to obtain permission from the Committee of the Foreign Business Division:

• A financial institution business, relevant or essential business of a financial institution, other businesses of a financial institution, and the business of a company which I in a group of financial institutions, in accordance with the Financial Institution Business Act:

(a) Commercial banking;

(b) Foreign bank representative offices;

(c) Providing financial services in compliance with Sharia law;

(d) Serving as a banking agent;

(e) Providing deposit services with withdrawal conditions based on client demand, and trusts;

(f) Private repurchase business;

(g) Serving as an agent accepting a request and charging a premium or a service fee for an export credit insurance, and being a credit guarantor;

(h) Providing financial business services for a financial institution, a company which is in a group of financial businesses, the Bank of Thailand, and government agencies;

(i) Being a real estate lessor;

(j) Being a factoring company for loan agreements;

(k) Providing cash management services;

(l)  Providing documentation for a business;

(m) Being an agent collecting a payment or accepting a request; and

(n) Being a hire purchaser and lessor in leasing.

• An asset management business in accordance with asset management company law;
• A representative office;
• A regional office;
  • A service business which acts as a contracting party with the government, under the Budget Procedures Act; and
  • A service business which acts as a contracting party with state enterprises, under the Budget Procedures Act.

However, the above business may need the official document to guarantee their legal entity in Thailand. We will keep you informed of future events as they occur. If you should have any questions or comments, please do not hesitate to contact our legal department.