Category: Company Law
Foreign Business Act: Manufacturing For Hire
Manufacturing is generally not restricted by the Foreign Business Act of 1999 which means that foreigners are allowed to operate such businesses in Thailand without having to apply for a Foreign Business License. However, one unclear point regarding manufacturing is whether manufacturing products according to specific customer orders is restricted to foreigners under the Foreign […]
Thai-U.S. Treaty of Amity Frequently Asked Questions
The purpose of this article is to address a few questions that are frequently raised by clients regarding the Thai-U.S. Treaty of Amity, which allows U.S. citizens and companies to be exempted from most of the restrictions of the Foreign Business Act of 1999. Although the meaning of the Treaty of Amity itself is rather […]
Direct Selling under the Foreign Business Act
Direct sales or direct marketing generally refers to the the selling or marketing of goods and services by independent sales agent to consumers directly at their home or workplace. In Thailand, the Direct Sales and Marketing Act of B.E. 2545 (2002) defines the terms as follows: “Direct sales” refers to the marketing of goods or […]
Restrictions on Unfair Trade Practices in Franchise Businesses
Commissioner Santichai Santawanpas of the Office of Trade Competition Commission or OTCC announced last month that new guidelines on unfair trade practices of franchise businesses would be enforced starting February 4, 2020. He said that the change aims at ensuring good governance, establishing business practice standards, and protecting small-scale franchise holders from bigger ones. At […]
Bank of Thailand Announces Relaxation of Foreign Trading and Exchange Regulations
The Bank of Thailand (BOT) Act, B.E. 2485 sets out the objectives, the scope of working and organization structure of the Bank of Thailand in accordance with the international central banking standard in order to maintain the financial system, the financial institution system and the payment system stability and efficiency through transparency and accountable procedure. […]
Technology Transfer Plan Guidelines for Thai BOI
Foreign investors in Thailand who will be applying for a license in order to engage in a restricted business activity according to the Foreign Business Act of 1999 must prepare a technology transfer plan. Section 5 of the Foreign Business Act requires that technology transfer constitute one factor to be considered in permitting foreigners to […]
Thailand Foreign Business License: Rental Services
“Rental services” refers to procuring immovable property, such as land or office space, or movable property, such as machinery, equipment or motor vehicles for lease to customers. Rental services falls within Category (21) of List Three annexed to the Foreign Business Act of 1999. Therefore, any foreigners that plan to engage in rental services in […]
Legal Protection of Online Banking in Thailand
The ways of the world have gone digital since the invention and phenomenal evolution of information technology. Doing business has easily been one of these ways and the ease, economy, competitiveness, and speed of digital operations have led industries, including banking, to use the internet or go online. Thailand is among those, which have kept […]
Company Registration: Shareholder Meetings
Shareholder meetings form an important element of Thai company law, as Section 1144 of the Civil and Commercial Code states that “Every limited company shall be managed by a director or directors under the control of the general meeting of shareholders and according to the regulations of the company.” Therefore, shareholders play an important, albeit […]
Mergers and Acquisitions: VAT Implications under the Revenue Code
Under the Revenue Code of Thailand, what are the specific value-added tax (VAT) implications that arise after a merger and acquisition? The general principle of law as stated in Sections 152 and 153 of the Public Limited Companies Act of B.E. 2535 (1992) is that a merger of companies causes the former companies to cease […]
