Thailand is quite popular as a business paradise for foreign investors. The major reason behind this is the facilitation and ease that foreign investors receive in Thailand. Owing to the consistent effort of improving the regulations to attract foreign direct investment in Thailand, the nation is homing many foreign businesses. Among all the investor-friendly processes, issuance of a foreign business license is pretty easy as compared to other nations. Along with the process, this article will disclose the cost of obtaining foreign business license in Thailand.
Things to Know Before the Cost of Foreign Business License in Thailand?
Are you eligible for Foreign Business License in Thailand?
The qualifications and prerequisites for foreigners wishing to apply for a Foreign Business License in Thailand are listed in Section 16 of the FBA and shall not be in violation of the following conditions:
- Must be of or more than twenty years of age;
- Have a residence in Thailand or valid permit to enter the Kingdom temporarily under the immigration laws;
- Should not have history of being an incompetent or a quasi‐incompetent person;
- Should not be a bankrupt;
- There should not be any history of penalization by a court judgment or ordered to pay a fine in settlement of any offense;
- Should not have history of imprisonment by a court judgment for offenses of cheating, cheating creditors, misappropriation or offenses related to trade under the Penal Code;
- Must not have a license issued under this Act or under the Notification of the National Executive Council No. 281, dated 24th November B.E. 2515 (1972) revoked within the period of five years prior to the date of the application for the license.
Apart from these, there are various other conditions and criteria that you must fulfill to acquire the license. Read our previously published article to get more information!
Overall, any foreign investor willing to apply for a foeign business license in Thailand must have a socially, commercially and ethically clean image to be eligible. It is very logical to hold these virtues if you want to be successful in business!
How to get Approval of your Foreign Business License in Thailand?
Certain rights are specifically reserved for Thai citizens under Thai business regulations. As a result, when conducting business in Thailand, foreign investors are subject to specific limitations. For the purpose of regulating business operations and activities involving foreign individuals and companies, the Foreign Business Act (FBA), B.E. 2542 (1999), was enacted.
Before starting their company operations, foreigners who desire to engage in activities included in Lists 2 or 3 of the Foreign Business Act in Thailand must get a “Foreign Business License” from the appropriate authorities.
A request should be sent to the Business Department, and the Cabinet or Foreign Business Committee will examine it, as appropriate. While evaluating a foreign business license application, the relevant cabinet normally takes the following factors into consideration largely:
- Safety and Security of the Nation
- Contribution of the new business in the economic and social development
- Scale of the proposed company
- Capability of the firm to contribute to the local employment
An application for a business license is more likely to get approval if the government considers it to offer significantly more benefits and to safeguard and advance Thai interests. The more your business idea and objective of your organization gets closer to Thai benefits, the chances of approval increases manifold. To know more about the regulations and process, read through this!
Now, if you are eligible for the Foreign Business License, and have understood the process of application and approval, let us proceed with the cost of foreign business license in Thailand.
What is the Cost of Foreign Business License in Thailand?
When we talk about the cost of foreign business license in Thailand, there are various parameters that are considered. The major factors that decided this costing are as follows:
- Type of business you want to incorporate, i.e., whether you want to deal in products or services or consulting?
- What will be the type of business formations, i.e., a LLP, Regional Office, Branch Office, Representative Office, Joint Venture or anything else?
- What industry are you trying to serve, i.e., whether it is manufacturing, construction, media, IT, trading, brockery or any other? Based on the type of industry you will fall in the respective lists of the Foreign Business Act of Thailand. This will further play a role in ascertaining the cost of your foeign business license in Thailand.
However, on overall basis, following are the standard fees for a foreign business license in Thailand:
The Bottomline
Please note that, there are times when only knowledge and information may not be sufficient to support your endeavors. The same goes when you are planning to start a business in Thailand as a foreign investor. In spite of all knowledge and information, you will need local Thai help. This help is the assistance that you can get from leading law firms in Thailand to make your process of business registration in Thailand successful. Write to us at [email protected] to get seamless services facilitating business formation, accounting and taxation processes.
