Foreign Business Licenses (FBL) Foreign Ownership
Operating a foreign-owned business in Thailand requires a license for many activities; but the process is straightforward with the right guidance. We handle the paperwork, the submissions, and the follow-up, so you can focus on running your business.
EXPLAINED SIMPLY
Foreign Business License
Foreign ownership of businesses in Thailand is feasible but involves a nuanced process. A foreign-owned business is defined as one where more than 49% of shares are held by foreign nationals. Governed by the Foreign Business Act, such enterprises must secure a Foreign Business License before commencing operations.
This license is crucial for ensuring compliance with local laws and regulations, which are designed to protect Thai economic interests. Additionally, understanding the specific categories of business activities restricted for foreign investors is essential for navigating the legal landscape effectively. By carefully adhering to these regulations, foreign entrepreneurs can successfully establish and operate their businesses in Thailand.
HIGHLY EXPERIENCED
Why Partner With Attori Law?
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End-to-end guidance
From confirming whether your activities require a license to preparing your application and managing submission, we handle every stage of the FBL process.
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An honest assessment first
FBL approval is decided case by case rather than granted automatically, and the work that determines the outcome happens before anything is filed. If your activity is unlikely to be approved, you will hear that at the start rather than months in.
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A partner beyond approval
An FBL comes with ongoing compliance obligations, and we stay with you after approval to make sure your company remains compliant and your license remains valid.
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We will tell you if it is the wrong route
An FBL is not always the right answer. BOI promotion and the Treaty of Amity both allow majority foreign ownership, and for some businesses they are faster and carry more benefit. We assess all three before you commit to any of them.
KEEP Control over your company Consult with us for free
STAY COMPLIANT
Foreign Business License Regulations
The Foreign Business Act (FBA) imposes restrictions on foreigners from engaging in approximately 50 types of business activities, categorized into three lists.
List One
Activities prohibited to foreign companies under the Act itself. No licence is available.
The exception is where a trade agreement provides a route in. Companies qualifying under the US Treaty of Amity or Thailand-Australia Free Trade Agreement can operate through a Foreign Business Certificate (FBC) rather than a Foreign Business License (FBL).
Capital is based on 25% of the company’s average projected expenditure over its first three years, rather than a fixed minimum. For example, ฿100 million of projected expenditure requires ฿25 million in capital.
List Two
Activities affecting national security, Thai arts and culture, or natural resources, including domestic transport. Foreign companies require Cabinet approval.
Minimum capital is ฿3 million. At least 40% of the directors must be Thai, and Thai shareholding must generally be at least 40% (potentially reducible to 25% with Ministerial approval and Cabinet consent).
Applications are submitted to the DBD. The Minister decides within 60 days, with the licence issued within 15 days of approval. The overall process typically takes around four months. Refusals must be given in writing with reasons within 30 days.
List Three
Activities where Thai businesses are considered not yet ready to compete. This covers most foreign-owned service businesses and is the main route to a Foreign Business License.
Minimum capital is ฿3 million, and at least one authorised director or member must be resident in Thailand. There is no Thai shareholding or Thai director requirement, allowing 100% foreign ownership.
The DBD Director-General decides within 60 days, with the licence issued within 15 days of approval. Refusals must be given in writing with reasons within 15 days.
Companies authorised through the BOI or a qualifying trade agreement use an FBC instead.
To engage in activities from LIST 2 and LIST 3 a foreign entity would need to obtain a Foreign Business License, filing an application with the Business Department to be reviewed by the Cabinet or Foreign Business Committee.
Once documents are submitted to the Director General a decision will be made within 60 days and a license issued with 15 days thereafter. Due to the protective nature of Thailand in regards to foreign businesses the process can take longer, and without having a qualified lawyer present the application will more than likely fail.
GET IT RIGHT
A Strong Application
A Foreign Business License is not granted automatically. Each application is assessed on its merits, and approval depends on how well it's prepared and presented. The points below cover what separates a strong application from one that risks delay or refusal.
- Correct capital requirements with clear financial planning for first 3 years
- Realistic detail on staffing, premises, and how the business will actually run, showing it's a genuine operation rather than a formality.
- Clean hierarchy and structure for shareholders and directors
- A well-argued explanation of why the foreign business benefits Thailand, since approval is discretionary and the authorities weigh the value the business brings.
- Business licenses and genuine history of compliance.
- The right list and category from the start
TRUST AND ACCOUNTABILITY
What Clients Say
LUKAS KIRCHBERGER
Very professional and reliable law firm with excellent communication. They were clear, responsive, and provided practical legal advice without unnecessary complications. I felt well supported throughout the entire process and can highly recommend Attori Law to both individuals and businesses seeking legal assistance in Thailand.
CONRADO CATIMBANG
I had the pleasure of working with this company for registering my business, as well as handling my visa, work permit, and trademark filing. The entire process was seamless and efficient. They were consistently professional, knowledgeable, and provided amazing suggestions whenever I had concerns. They also kept me updated every step of the way, making the experience stress-free. Their kindness and helpfulness truly stood out. I highly recommend them!
SANKET VELHAL
I was handling a complicated situation around Thai business compliance + immigration/Non-B visa process, with deadlines and a lot of moving parts. Their team stayed calm, explained things clearly, and gave me realistic options instead of false promises... ... If you’re an expat or business owner in Thailand and you need help with visa/work permit, company filings, or compliance, I would definitely recommend Attori Law. They know what they’re doing and they treat clients with respect.
TRYSTAN TRESTCHENKOFF
Me and my partner registered a company with Attori and for now the service is reliable, good and on time. I recommend them to anyone willing to register a company in Thailand.
Scott
Simple and straightforward to talk to for all business and work permit related matters. Excellent customer service!
JOHN BEARDMORE
Attori Law provides excellent legal support. Golf offers a very personalized service, taking the time to understand every detail and making the whole process smooth and professional. Highly recommended.
WHAT'S EXPECTED
Foreign Business License Requirements
Document requirements vary by Thai Embassy or Consulate and by nationality. Some embassies request additional materials such as criminal record checks, medical certificates, or proof of accommodation, and certain nationalities can only apply at specific locations. We confirm the exact requirements for your consulate and nationality as part of the consultation.
Personal Documentation
- Be at least 20 years old
- Hold residency in Thailand or have valid temporary entry permission under Thai immigration law
- Have full legal capacity (not be declared incompetent or quasi-incompetent)
- Not be subject to bankruptcy proceedings
- Not have received a court judgement or fine settlement for offences under the FBA or the National Executive Council Notification No. 281 within the preceding five years
- Not have received a custodial sentence for fraud, creditor deception, misappropriation, trade-related offences under the Thai Penal Code, public loan fraud, or immigration offences within the preceding five years
- Not have had a Foreign Business License revoked in the five years prior to the application date
Company Documentation
- Company registration certificate (copy)
- Passport, national ID, or equivalent identification document for the authorised representative (copy)
- Statutory declaration confirming that the applicant, directors, managers and authorised representatives meet the eligibility criteria under Section 16
- Site map showing the business location
- Business description statement covering the activities for which the licence is sought
- Audited financial statements for the past three years, with certified Thai translation (copy)
- Power of attorney, if the application is being filed through a representative
- Proof of the representative's Thai address or immigration status (house registration certificate, certificate of residence, or entry permit)
SUPPORT FROM START TO FINISH
The Application Process
STEP 1
Document Preparation
Before filing Gathering and preparing the application (company documents, financial statements with Thai translation, business plan, supporting declarations). Timing varies with how complex the business is and how quickly documents come together.
STEP 2
Submission to the Department of Business Development
The application is filed with the DBD for review by the Foreign Business Committee (List 3) or the Cabinet (List 2).
STEP 3
Decision Period (60 days)
The Director-General issues a decision within 60 days of submission. This is the statutory timeframe.
STEP 4
License Issuance
Once approved, the license is issued within 15 days.
BOARD OF INVESTMENT VS FOREIGN BUSINESS LICENSE
Comparing Structures
Choosing the right structure is the first decision for any foreigner doing business in Thailand. The main routes to majority foreign ownership are an FBL, BOI promotion, the US Treaty of Amity for Americans, or a Thai Limited Company. The table compares them on ownership, work permits, capital, and timeline.
| Category: | Foreign Business License (FBL) | Board of Investment (BOI) | Thai Limited Company | Treaty of Amity |
|---|---|---|---|---|
| Foreign Ownership | Yes | Yes but FBL is tied to the project | Max 49% | Up to 100% for US citizens and companies |
| Work Permit Requirements | 4 Thai employees per work permit | No restrictions | 4 Thai employees per work permit | 4 Thai employees per work permit |
| Who Can Apply | All foreign nationals in qualifying fields | Projects falling under BOI promoted categories | All | US citizens or companies only |
| Minimum Registered Capital | 3 million baht (paid up over first 3 years) | Project dependent | No minimum capital | 3 million baht |
| Application Timeline | 6 to 9 months | 4-6 months depending on project complexity | 1-2 weeks | 6 to 9 months |
| Benefits | Not tied to project and can be applied for by anyone | Fast track visas, tax holidays, low barriers for foreign workers | Easy to set up and maintain | Same as FBL but easier to get certified |
| Roadblocks | Can be rejected or delayed with tougher guidelines | Must maintain project to keep BOI and benefits active | Does not allow foreign ownership except in a few specific areas. | US nationals only; no other benefits apart from ownership |
FAQs
Do I actually need a Foreign Business License?
Only if foreign nationals hold a majority of the shares and the business carries out a restricted activity. If either of those is not true, no licence is needed. That is the first thing worth establishing, because plenty of businesses assume they need one when they do not, and others find out too late that they do.
Which activities are restricted?
The Foreign Business Act sets out three lists. One is closed to foreign ownership altogether, with no application available. The other two require approval, but they go to different authorities and carry very different odds. Most service businesses sit in the list where approval is realistically achievable, which is why establishing your list and category correctly matters more than anything else in the application.
How long does an FBL take?
Six to nine months in practice. The statutory part is short: the Director-General decides within 60 days of submission, and the licence issues within 15 days of approval. Everything else is preparation, and that is where the time goes. It is also where the outcome is decided.
How much capital do I need?
Three million baht, paid up across the first three years rather than all at once. The figure is a floor, not a target. An application showing the bare minimum against an ambitious business plan invites questions, so the capital needs to be consistent with what you say the business will do.
Can my application be refused?
Yes. Approval is discretionary, not automatic. The assessment weighs how the business benefits Thailand, what employment it creates, and whether it competes directly with Thai-owned businesses. A weak application is refused or stalled rather than corrected, which is why the preparation carries the risk.
Can I trade while the application is pending?
No. The licence has to be in place before you begin the restricted activity. Companies do sometimes register and start non-restricted operations while the FBL is in progress, but that depends entirely on which parts of the business are restricted, so take advice before assuming it applies to you.
Does an FBL change the work permit rules?
No. Holding an FBL does not exempt you from the four Thai employees per work permit ratio. That exemption comes with BOI promotion, not with an FBL. If your plan depends on hiring several foreign staff, that difference is worth weighing before you choose a route.
Should I apply for an FBL or use another route?
An FBL is open to any nationality in a qualifying field, which is its main advantage. BOI promotion is faster and brings tax and hiring benefits, but only for promoted activities. The Treaty of Amity is simpler again, but only for US nationals. The table above compares all four routes side by side.