The business activities which foreigners may engage in are controlled by Thai laws. While some business activities cannot be allowed to foreigners completely, businessmen like Burmese may still engage in some activities with approval from the designated Thai government agency.
The Foreign Business Act of 1999 has identified 3 lists of activities in which foreigners maybe prohibited or restricted, as follows:
Business activities in List 1 are designated as “businesses prohibited to foreigners to operate due to special reasons. Meaning, foreign owned companies are completely restricted from engaging in the activities in List 1.
Business activities in List 2 are designated as “businesses related to national safety or security or affecting arts and culture, traditional and folk handicraft or natural resources and environment.” This means foreigners can operate such business activities listed in List 2 only when the majority of shares of the company are held by Thai nationals or Thai juristic persons.
Business activities in List 3 are designated as “businesses which Thai nationals are not yet ready to compete with foreigners.” Therefore, if foreigners like Burmese businessmen wants to operate other service businesses, one must apply for a Foreign Business License with the Foreign Business Commission of the Ministry of Commerce before they can start the business operation. Such other business activities may include import, wholesale or retail, consulting, repair and maintenance, etc.
However, there are 2 common exceptions to the above stated rules:
- If a foreigner engages in business activities under the List 2 or List 3 has obtained the certificate from the Thai Board of Investment or the Industrial Estates Authority of Thailand, they can still operate the business without the need to undergo Foreign Business License application
- If a foreigner has American nationality (e.g. a Burmese national with American citizenship) and wants to operate a business that is classified in the lists under the Treaty of Amity, they can still do the business without the need to apply for a Foreign Business License
Burmese businessmen may be able to apply for a Foreign Business License but the process can be daunting. You will need an expert like Thai Lawyers in preparing the application. Contact us now for Foreign Business License application, getting Board of Investment Certificate and registering the company under the Treaty of Amity.