Thailand is an attractive location for foreigners to register a Thai company because of its rich resources, modern infrastructures, diverse workforce, and affordable cost of living. However, before foreign investors can proceed with setting up a company in Thailand, they first need to obtain a mandatory foreign business license.

A foreign business license is an official document given to majority-foreign owned businesses who wish to operate in the country. This is granted to foreign businesses who wish to engage in activities not restricted by Thai Laws. Such businesses fall under the LIST 2 and LIST 3 categories.

Company registration in Thailand for foreign investors may be complicated. So, to help you out, this article will answer some of the important questions you need to ask when applying for a foreign business license.

What are the requirements?

According to the Foreign Business Act, Section 16, foreign investors intending to obtain a foreign business license must meet the following requirements and qualifications:

1. Applicant must be 20 years of age or older;

2. Applicant must have a permanent residence in Thailand or has been permitted to

temporarily reside in the Kingdom under immigration law;

3. If the applicant is a non-resident, he must have a non-immigrant B (business visa).

4. Applicant must not be bankrupt;

5. Applicant must not have received punishment from court due to unwarranted offence, and;

6. Applicant must not be imprisoned or have been imprisoned by the court for cheating, misappropriation, or other trade offence.

What is the application process?

If you meet the basic requirements, you can apply for a business license. There are two different ways to obtain a business license. These include:

1. Applying for permission to operate a company that falls under business LIST 2. The application will be submitted to the Department of Business Development. They will then propose it to the Minister of Commerce. After that, the Minister of Commerce will endorse the application to the Cabinet. Once the Cabinet approves the application, they will send word to the Department of Business Development, who will then notify the foreign applicants. The license should be issued 15 days after the notification.

2. Applying for permission to operate a company that falls under business LIST 3. The application must be approved by the Department of Business Development's Director General and the Committee. The license should be issued 15 days after the notification. In some unique cases, a foreign business license is not required to operate in the country. Without a business license, foreign companies can operate if
2.1 The company has a minimum 100-million-baht paid-up capital for every business; 2.2 A Thai company has submitted a principal approval letter to the Foreign Business. Department committee and has been approved. Only then can the local shares be transferred to foreigners, transforming a company into a foreign business. In both cases, however, the foreign business entity must inform the Foreign Business Department regarding the capital and the principal approval letter before beginning its operations.

How long does the application process take?

If you don't fall under the special categories and require a business license, you can expect the application process to be lengthy. Due to the complexity of the situation and the rigorous evaluation process across different departments, the consideration period for application approval may take anywhere between 60 to 120 working days.

What happens if your application is denied?

If your application is denied, written notification will be delivered to you within 15 days of the application. When you receive the notification, you are entitled to send an appeal to the Minister of Commerce within the next 30 days. Once your letter of appeal is received, the reconsideration period will commence. You should receive a notification within 30 days. Although company registration Bangkok can be complex, you can streamline the process by hiring corporate incorporation services. With their professional help, you can ensure license application approval to operate smoothly in the Kingdom.