On 25 June 2019, the Royal Gazette announced the new Ministerial Regulation No. 4 (“Regulation”) to exempt additional service types rendered to related companies from the foreign business license (“FBL”) requirement under the Foreign Business Act as follows:
According to the Regulation, the “related companies” include companies having relationship among them as follows:
The purpose of the FBL exemption for the above additional services is to facilitate foreign investors in Thailand with regard to the provision of services to their related companies as well as to promote foreign investment in Thailand.
Although the FBL is no longer required for the above services under this Regulation, foreigners operating business in Thailand may still be subject to other legal requirements both under the Foreign Business Act and other laws such as minimum capital requirement, tax compliance and other license requirements under other specific laws which may be applicable to certain business types of the foreigners.
Therefore, business entities with foreigner status should carefully consider all of Thai laws and regulations applicable to their business activities in Thailand and seek advice from appropriate legal advisors to ensure their proper compliance with Thai laws.
We welcome any opportunity to discuss the relevance of the above matters to your business.
KPMG Thailand’s Legal Services Team offers a wide range of practical legal solutions. For more information, please visit Legal Services.