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

Thailand is taking a significant step toward enhancing its investment climate. The Department of Business Development (DBD) has introduced a draft Ministerial Regulation aimed at reducing restrictions on foreign investment by exempting select business activities from the need to obtain permission under the Foreign Business Act B.E. 2542 (1999).

The draft regulation proposes removing ten categories of business activities from the Act’s restricted list. Once removed, foreign investors will be able to operate in these sectors without obtaining a Foreign Business License (FBL). The proposed business categories include:

1. Telecommunication services for Business Type 1.
   
   
2. Treasury Center Business.
   
   
3. Software Development Business.
   
   
4. Management Services for associated/affiliated company.
   
   
5. Credit Guarantee Business for associated/affiliated company.
   
   
6. Leasing space for installing the electronic machine (ATM/vending machine)
   
   
7. Petroleum drilling service business.
   
   
8. Business services of lending money in various forms under the law on securities and exchange/the law on derivatives contracts.
   
   
9. Business of providing services as an agent, trader, consultant or fund manager for futures contracts on commodities or variables which references are not subject to the law on derivatives contracts.
   
   
10. Internal trade related to traditional agricultural products of products is not yet prohibited by law. 

This draft is currently under review by the Cabinet. If approved and formally enacted, the changes will streamline market entry for foreign investors and reduce administrative burdens in the designated sectors.

These proposed amendments signal Thailand’s intent to modernise its regulatory limit, improve ease of doing business, and strengthen the country’s competitiveness as a regional investment hub. Foreign investors engaging in the listed business categories would no longer need to apply for a Foreign Business License, thereby accelerating market access and operational readiness.