15 Oct 2019
THAILAND: Foreign Business Licence Requirement Waived in Four Industry Sectors
The need to secure a foreign business licences prior to beginning operations in four commercial sectors is to be waived – telecommunications services provided under Telecommunications Licence Type I (operators that do not own a telecommunications network); treasury centres; aircraft repair and maintenance services; and higher added-value software developers.
The designated business sectors will effectively be excluded from Annex Three of the country’s Foreign Business Act (FBA), which lists a number of businesses and commercial activities that overseas investors are prohibited from engaging in without first securing a licence from the Foreign Business Committee or officially being deemed an exception. The list was originally compiled to protect domestic investors from overseas competition in the designated sectors.
Once the proposed changes are implemented, the four sectors will be subject only to the existing laws governing their respective fields, such as the Telecommunications Business Act; the Exchange Control Act; and the Air Navigation Act. This will see would-be overseas telecommunication service operators required to obtain a permit from the Office of The National Broadcasting and Telecommunications Commission, while aircraft repair and maintenance businesses will need the endorsement of the Civil Aviation Authority of Thailand.