ASEAN Comprehensive Investment Agreement
On 26 February 2009, the economic ministers of the ten ASEAN member States signed the ASEAN Comprehensive Investment Agreement (the “ACIA”), which liberalized trade within ASEAN in the following fields:
Pursuant to the terms of the ACIA, ASEAN nationals are able to operate foreign majority-owned firms in Thailand by applying for a Foreign Business Certificate according to Section 10 of the Foreign Business Act of 1999 (the “FBA”) in the following fields:
|1. Mining on land or at sea|| |
|2. Production of flour from rice or other agricultural products|| |
| 3. Cultivation of tuna fish in deep sea cages and cultivation of certain domestic breeds of spiny lobster |
4. Cultivation of new breeds of onion seedstock
ASEAN nationals who apply for a Foreign Business Certificate must register as a juristic person under the Thai Civil and Commercial Code, such as a Thai Limited Company, Limited Partnership or Registered Ordinary Partnership. However, firms registered outside of Thailand may operate under the FCIA by holding the majority of shares in a firm registered in Thailand. A firm registered outside of Thailand holding such shares must be registered in an ASEAN member State must have over 50% of its capital owned by ASEAN nationals, and must have its board of directors occupied by over 50% with ASEAN nationals.
Further cooperation, liberalization of trade and foreign direct investment can help turn ASEAN into an agricultural and economic powerhouse as the region progresses into the future.
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Siam Legal is an international law firm with experienced lawyers, attorneys, and solicitors both in Thailand law and international law. This Thailand law firm offers comprehensive legal services in Thailand to both local and foreign clients for Litigation such as civil & criminal cases, labor disputes, commercial cases, divorce, adoption, extradition, fraud, and drug cases. Other legal expertise of the law firm varied in cases involving corporate law such as company registration & Thailand BOI, family law, property law, and private investigation.