Today, we got an inquiry about registering a company that will not just export products from Thailand but will also import some products to sell in Thailand.
Although foreigners can engage in export activities without the help of a Thai partner, they cannot engage in sales in Thailand unless they have a Thai partner or apply for a Foreign Business License. Hence, if foreigners just set up their own facility in Thailand to assemble the products and export 100% of them, there is no need to apply for a Foreign Business License. However, if they really want to sell their products in Thailand, it is subject to the Foreign Business Committee’s approval.
The Foreign Business Committee in Thailand has their criteria in obtaining a Foreign Business License. Such criteria will be considered to decide if they will approve a project or not:
1. The products that the foreign company wants to sell in Thailand need to use high level technology to produce.
2. Are similar products being sold in Thailand? If yes, what is the difference the foreigner’s products have over the ones existing in Thailand market?
3. What will Thailand benefit from granting the permission for the foreigners to do this business in Thailand?
We at Thai Lawyers can help set up companies and apply for a Foreign Business License. Consult with us now to determine whether you need to get FBL to do business in Thailand. We may have other solutions for you as well.