Doing Business in Thailand

This morning in the Bangkok Post was an interesting article about the tightening of insurance shareholding rules by Sorachon Boonsong a Thai lawyer. In substance, Khun Sorachon comment on a ruling from the Council of State dated of 14 September 2009 in relation to the new shareholding requirements of the amended Life and Non Life Assurance Act.

Read more…

Originally posted 2009-09-23 04:15:46.

What is the current legal definition of a Foreigner?

In this post I will discuss how the concept of “foreigner” is defined by the Thai Foreign Business Act (formerly “Alien Business Act”) as well as the changes that the Thai Government wanted to bring to this definition in December 2007. While the attempt to change the definition of the FBA definition of the term of foreigner ultimately failed the fact is that it was the second such attempt since the enforcement of the FBA and that Foreign Investor coming to Thailand should keep in mind that said matters could resurface at any time in the future. Read more…

Originally posted 2009-07-21 12:25:37.

One thing I find interesting when blogging is that Google and Wordpress have tools that permit me not only to check what articles are the most successful but also the search queries of my blog readers. Now when looking at the queries I notice that there is still a lot of confusion among readers as to definition of legal concepts such as Thai or Foreign Private Limited Company and nominees. I tried hereinafter to clarify those concepts.

Read more…

Originally posted 2009-10-07 04:38:15.

The hot potato of the moment is the Thai Nominees issue and there has not been one day for the past two weeks without an article or another in Thai press on the subject.

Read more…

Originally posted 2009-09-02 05:51:07.

What is the Foreign Business Act?

The Foreign Business Act B.E. 2542 (A.D.1999) (“FBA”) was enacted on March 4, 2000 to replace the Alien Business Act of 1971. The FBA does not regulate the entire matter of foreign investment in Thailand. The FBA purposes are:

1. to define businesses activities, which exercise by foreigners, is prohibited or controlled and
2. to define what a foreigner is.

Read more…

Originally posted 2009-07-21 08:54:44.

“So when the woman saw that the tree was good for food, that it was pleasant to the eyes, and a tree to be desired to make one wise, she took of its fruit and ate. She also gave to her husband with her, and he ate.” (Gen3:6).

This extract of the genesis sum up the story of foreign investment in Thailand.

Read more…

Originally posted 2009-08-17 06:51:07.

Many countries are currently negotiating Free Trade Agreements with Thailand and the citizens of those countries are waiting impatiently for the benefits they will get out of these free trade agreements. Hopefully, they will finally be able to invest in Thailand without having to make allegiance to “You-Know-Who”  “He/She-Who-Must-Not-Be-Named” that is to say the Thai Wife, Boyfriend or the Thai shareholder that may be deemed a nominee.

Read more…

Originally posted 2009-11-09 05:26:48.

 The Business Development Department just announced the creation of a special unit dedicated to check companies’ compliance to the Foreign Business Act. The purpose of the new agencies is to insure more efficiency in insuring compliance to the Foreign Business Act. What does it mean for foreign investors in Thailand?

Read more…

Originally posted 2009-12-06 09:49:32.

What is a Foreign Business License?

As explained above, if you wish to invest into an activity, which is controlled under FBA List 2 or 3, and own more than 50% of the share equity of your business, then one of the options available to you is to apply for a foreign business license. If you obtain the license, you will then be allowed to exercise a business listed under list 2 or 3 in the form of a foreign majority company. Read more…