Operating a foreign-owned enterprise in Thailand is complex and requires attention to complying with various legal provisions regarding sole proprietorship. There are three important licenses for foreign businesses operating in Thailand: Foreign Business License (FBL) and Investment Promotion License
Board of Investment License (B0l) and Foreign Business Certificate (FBC).
(1) Foreign Business License (FBL)
Foreign enterprises have the right to engage in industries specified in Appendix III of the Foreign Business Law, mainly in the service industry, and can obtain 100% foreign-owned company status. But for the first and second types of businesses restricted by the Foreign Business Operation Law, foreign businesses cannot obtain 100%
The status of a wholly foreign-owned enterprise. In the first category of industries, such as media business, foreign investors can only obtain up to 25% equity, and their board of directors must also have a majority of Thai directors.
The Foreign Business License is applicable to enterprises that have not obtained the B0 license, mainly in the service industry. The OEM business in the manufacturing industry also belongs to the service industry and requires the application of a license. The Foreign Business License needs to go through a relatively complex and time-consuming approval process, which is similar to B01
The application process is somewhat similar.
The qualifications of applicants for foreign business licenses are mainly for foreigners prescribed by law (foreigners account for most of the shares of non Thai people or companies). Applicants need to have a clear business plan, including three-year revenue and expenditure estimates, as well as specific business processes
Introduction. The foreign business license requires applicants to meet the minimum capital required by law, usually starting at three million Thai baht.
(2) Board of Investment License (B01: Board of Investment)
The applicant mainly engages in manufacturing business and targets high-end manufacturing as the investment attraction. After obtaining approval from the Investment Promotion Committee, applicants are entitled to tax benefits and other privileges, such as income tax exemption, import tax reduction, and land ownership. suffer
The encouraged industries are applicable to businesses supported by the Thai government, such as high-tech, modern industry, or businesses that are beneficial to the Thai economy. In recent years, the most popular is the Eastern Economic Corridor (EEC) development zone.
B0) The applicants are usually foreigners who meet the requirements of the law, and a small number of Thai enterprises apply for B01 for the purpose of enjoying tax preference, whether it is the import tariff of raw materials and equipment, or enterprise income tax. Foreign enterprises applying for B0 must provide enterprise information
Business plan, introducing equipment, technology, and personnel for production process design, as well as investment scale and funds. Sometimes applicants apply for B01! The estimated investment funds may be related to B0! If the approved amount does not match, it is usually B0! gauge
The minimum investment amount shall prevail, and at the same time, applicants must be able to prove their business ability and benefit to Thailand's job market or economic development. For example, the electric vehicle industry is a highly promoted industry by the Thai government, and most practitioners can easily pass the approval.
(3) Foreign Business Certificate (FBC)
The foreign enterprise certificate is applicable to enterprises that are exempt from the law or enjoy privileges, such as businesses supported by treaties or international agreements, such as the signing of bilateral reciprocal treaties between the U.S. government and the Thai government, and the establishment of companies in Thailand by Americans can be solely operated without Thai shares
Dong does not need to apply for a foreign business license.
The applicant for a foreign enterprise license must be a foreigner who meets the legal requirements. In this country, which is mainly a bilateral reciprocal country between the foreign government and the Thai government, there are enterprises or natural persons from the United States, ASEAN member countries, Australia or Japan and other countries. Foreign Enterprise License
Applicants usually need to submit a business plan and provide relevant evidence to prove their nationality.
summary
Different license applications depend on the type and nature of business conducted in Thailand, as well as government policies and needs at different times. Therefore, understanding detailed information and preparing all necessary documents is an important step in applying for a business license to operate in Thailand.