Under Section 8 of the Foreign Business Act of 1999 foreigners are not allowed to operate any business concerning national safety and security, business affecting arts and culture, tradition and folk handicraft or the business affecting natural resources or environment as prescribed in the List 2 unless permitted by the Minister with the approval of the Cabinet.
The businesses related to the national safety or security or affecting arts and culture, tradition, folk handicraft or natural resource and environment are classified as below:
Group 1: The businesses related to the national safety or security
- Production, selling, repairing and maintenance of:
- Firearms, ammunition, gun powder, explosives
- Components of firearms, ammunition and explosives
- Armaments, ships, air-craft or military vehicles
- Equipment or components, all types of war materials
- Domestic transportation by land, water or air, including domestic aviation
Group 2: Businesses having impacts on arts, culture, traditions, and Customs and folklore handicrafts
- Trading of antiques or artistic objects that are artistic works or handicrafts of Thailand
- Production of wood carvings
- Silkworm raising, production of Thai silk yarn, weaving of Thai silk or printing of Thai silk patterns
- Production of Thai musical instruments
- Production of gold ware, silverware, nielloware, bronzeware or lacquerware
- Production of crockery or porcelains representing Thai arts and culture
Group 3: Businesses having impacts on natural resources or the environment
- Production of sugar from sugar cane
- Salt farming, including non-sea salt farming
- Production of rock salt
- Mining, including rock blasting or rock crushing
- Timber processing for production of furniture and utensils
The foreigners may operate the above business activities only if Thai nationals or Thai juristic persons hold the shares of not less than 40% of the capital of that foreign juristic persons. Unless there is a reasonable cause, the Minister with the approval of the Cabinet may reduce the proportion requirement but it should not be lass that 25% and the number of Thai directors shall not be less than two-fifths of the total number of directors.
Get an advice from the Foreign Business Law Experts to know if the business activities that you are planning to do in Thailand can be allowed to foreigners. Contact us now to consult about company registration, foreign business license applications, visa and work permits.