Foreign Business License – Principle Approval
Keywords: Mazars, Thailand, Legal, FBA, MOC, FBL
09 September 2013
- If the business is restricted under List 1 of the Foreign Business Act B.E. 2542 (“FBA”), the Foreign Company is forbidden from operating that business.
- If the business is restricted under List 2 or 3 of the FBA, the Foreign Company cannot operate that business unless it obtains a Foreign Business License issued by the Ministry of Commerce (“MOC”). Further, the Foreign Company cannot operate the business before obtaining the Foreign Business License (“FBL”).
The Ministry of Commerce allows a Thai Company intending to be a Foreign Company, currently operating a restricted business under List 2 or 3 of the FBA to submit a Principle Approval application requesting for the initial consideration / approval. If the result is negative, the company cannot be transformed. On the other hand, if it is positive, the company can transform to be a Foreign Company and apply for an FBL without the risk of not getting a license and breaking the laws during the FBL application process.