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In brief

The Ministry of Commerce has launched a public hearing relating to the draft ministerial regulation regarding the businesses which will be exempted from the requirement to obtain a Foreign Business License (FBL) or Foreign Business Certificate (FBC). For this initial public hearing, approximately 11 businesses have been proposed to be exempted, with the aim to attract foreign investors and promote investments in Thailand.


In more detail

The businesses to be exempted are:

  1. Being a derivatives agent where no underlying goods or underlying variables are governed by the Derivatives Act, B.E. 2546 (2003).
  2. Being a derivatives agent where amounts payable are calculated based on the exchange rate or interest rate, and these derivatives are traded outside the Futures Exchange.
  3. Telecommunications service business under Telecommunications License Type 1, for telecommunications business operators who own no telecommunications network, under the telecommunications business law.
  4. Treasury center business, under the exchange control law.
  5. Software development business as a juristic person incorporated in Thailand, with software developed in Thailand being the main source of income in its operations. Businesses operated by the juristic person must have characteristics as specified under the ministerial regulation.
  6. Service business involving administrative management, human resource management, and information technology management, provided to “related parties” under the definition of the draft ministerial regulation.
  7. Service business involving the provision of financial guarantees to “related parties” under the definition of the draft ministerial regulation.
  8. Service business involving the lease out of some parts of spaces for the purpose of installing electronic devices used in financial service provision and automatic vending machines, in order to serve and ensure convenience for company staff.
  9. Service business involving petroleum drilling.
  10. Service business involving the provision of various types of secured loans under the securities and exchange law and the derivatives law.
  11. Service business as a representative for business dealers, an advisor, or a manager of derivatives funds in which underlying goods or underlying variables are not governed by the Derivatives Act, B.E. 2546 (2003).

It is important to review carefully the ministerial regulation for the exact scope of business that will be removed from the list once it has been finalized and approved. The ministerial regulation will have to go through further stages of the legislative process and we will keep you informed of further developments.

Author

Waratchaya Tungsuwan joined Baker McKenzie in 2005. She is active in corporate and mergers and acquisitions, healthcare and life sciences and natural resources. Her experience includes representing multinational clients with their operations in Thailand.

Author

Pichayapa Aroonrat is a Legal Professional in Baker McKenzie, Bangkok office

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