Section Code: 0005 - 0009

Foreign Business Act,
B.E. 2542 (1999)

Section 5. Granting Foreigners the Right to Operate Business

In granting permission to foreigners for the operation of businesses under this Act, regard shall be had to advantageous and disadvantageous effects on national safety and security, economic and social development of the country, public order or good morals, national values in arts, culture, traditions and customs, natural resources conservation, energy, environmental preservation, consumer protection, sizes of undertakings, employment, technology transfer and research and development.

Section 6. Prohibited Foreigners

The following foreigners may not operate any business within the Kingdom:

  1. a foreigner who has been deported or whose deportation is pending;
  2. a foreigner entering and staying in the Kingdom without permission under the law on immigration or other laws.

Section 7. Foreigners who can Operate Business

The following foreigners may operate businesses upon obtaining a license from the Director‐General and may operate only such businesses, and in such localities, as prescribed in the Notification issued by the Minister with the approval of the Council of Ministers and published in the Government Gazette, provided that in such Notification the Minister may prescribe any conditions as the Minister deems appropriate:

  1. a foreigner born in the Kingdom without having Thai nationality under the law on nationality or other laws;
  2. a foreigner becoming a foreigner in consequence of the revocation of nationality under the law on nationality or other laws.

The application for a license, issuance of a license and a term of a license shall be in accordance with rules and procedures as prescribed in the Ministerial Regulation. In the case where the Director‐General refuses to grant permission to the foreigner under paragraph one for the operation of businesses, such foreigner has the right to lodge an appeal with the Minister and the provisions of section 20 paragraph one and paragraph three shall apply mutatis mutandis.

Section 8. Three Categories of Foreign Owned Businesses

Subject to section 6, section 7, section 10 and section 12:

  1. no foreigner may operate such businesses stricto sensu not permissible to foreigners by special reason, as prescribed in List One;
  2. no foreigner may operate such businesses related to national safety or security, businesses having impacts on arts, culture, traditions, customs and folklore handicrafts or businesses having impacts on natural resources or the environment, as prescribed in List Two, unless upon obtaining permission from the Minister with the approval of the Council of Ministers;
  3. no foreigner may operate such businesses in respect of which Thai nationals are not yet ready to compete with foreigners, as prescribed in List Three, unless upon obtaining permission from the Director‐General with the approval of the Commission.

Section 9. Amendments to Categories

Any amendment or revision of categories of businesses in the Lists annexed hereto shall be by a Royal Decree, save for the businesses in List One or in List Two, Chapter 1, where such amendment or revision shall be by an Act.

The Commission shall consider and review categories of businesses in the Lists annexed hereto at least once every duration of one year as from the date of the entry into force of this Act and shall prepare an opinion for submission to the Minister.

Foreigners operating businesses not prescribed in the Lists annexed hereto prior to the amendment or revision of categories of businesses under paragraph one shall, where such businesses are thereafter specified as the businesses the operation of which requires permission under this Act and such foreigners intend to continue the operation thereof, notify the Director‐General in order to obtain a certificate in accordance with the rules and procedures prescribed in section 11.

During the period in which action is taken under paragraph three and a certificate has not yet been obtained, such foreigner shall not be deemed as operating the business without permission under this Act.