Obtain Permits and Licenses for Your Business in Thailand

Depending on the industry in which the enterprise activates, there are different types of trade and business licenses required for your company in Thailand. Our lawyers in Thailand can offer comprehensive information on this matter for you to properly start your activities in the country and can help you obtain business permits and licenses in Thailand.

Requirements to obtain a business license in Thailand

Before applying for a business license in Thailand, a company must meet certain requirements. They depend on the industry to operate in and usually imply:

• a minimum share capital, such is the case of financial companies;
• qualifications of the managers and/or staff, such is the case of restaurants and healthcare facilities;
• experience in certain activities.

The available trade licenses that can be obtained in Thailand apply to companies engaged in commercial activities. Also, businesses undertaking import/export operations must also apply for trading permits.

Also, in order to carry out a licensed activity in Thailand, a business must have a local address. This is also the case for foreign investors who want to run their businesses as sole proprietors. They are subject to the following requirements:

• complying with Thailand’s immigration rules to be allowed to move to the country;
• applying for Thai residence permits or work visas;
• opening local bank accounts.

If you are a foreign citizen and want to relocate here, you can rely on our Thai immigration lawyers.

Permits for your business in Thailand

In Thailand, certain types of businesses like pharmaceuticals, some agricultural products, and alcoholic beverages have to be issued permits in order to produce and import inside the country. The permits for your business in Thailand are to be granted by the relevant ministries. Our Thai lawyers can provide more details on this matter. 

The foreign business license in Thailand

Certain categories of businesses in Thailand are not allowed to be owned in majority by foreign nationals or non-Thai persons if they are listed in the prohibited classes of the Foreign Business Act. If the foreign entity or firm wants to do business in one of the prohibited classes of business, it has to obtain a foreign business license in accordance with the regulations of the Foreign Business Act. A foreign business license in Thailand enables aliens (foreign entrepreneurs) to manage and lead foreign companies with activities that are normally restricted to aliens according to Thai legislation.

If you want to know more details about obtaining permits and licenses necessary for your company in Thailand, we invite you to watch the video below:

Acquiring a Foreign Business License in Thailand

Thai companies that are owned in majority by foreign citizens have to acquire a foreign business license from the Director-General of the Department of Business Development with the approval of the Foreign Business Committee. The process can be simplified if you obtain the approval of the Thailand Board of Investment (BOI).

A foreign business license could grant foreign investors 100% ownership of the categories of businesses under certain classes of businesses that are normally prohibited to aliens. The approval and issuance of a Thai foreign business license may be influenced by various factors like the impact on employment in the country, transfer of technology, advantages to the public, and the possibility that the activity might be undertaken by Thai citizens.

Usually, the application process for a foreign business license can be quite complex. It could take at least four months to receive such a license for your business in Thailand. Our law firm in Thailand can provide guidance for this type of application process.

Industries requiring licensing in Thailand

There are certain business domains in Thailand for which a company needs to obtain special functioning licenses. Our lawyers in Thailand can offer you information on the licensing requirements that you will find in four main industries in Thailand:

Telecommunications licenses​

According to the Telecommunications Business Act of 2001, any telecommunications service provider needs to apply for a license at the National Broadcasting and Telecommunications Commission (NBTC). Depending on the services you provide and the complexity of your business you should apply for one of the three licenses available: 

• license for operators who don’t have a separate network;
• license for operators who own a network targeting small segments of the public;
• license for operators who address the general public.

Factory licensing in Thailand

The Department of Industrial Works from the Ministry of Industry in Thailand has specific requirements in terms of factory licensing in this country. Depending on the size of the factory and how much it pollutes, the following rules apply:

• operations using machinery of less than 50 horsepower and fewer than 50 workers are not 'factories' under the Factory Act (as amended in 2019) and need no factory licence;
• for factories that use 50 or more workers or machinery of 50 or more horsepower the applicable factory type (1, 2 or 3) determines whether no formality, a notification or a licence is required before commencing work;
• big factories, highly polluting must obtain a factory license before the beginning of production.
  Since the 2019 amendment, factory licences no longer expire and remain valid until the factory ceases operation.

Other businesses that require specific licenses are restaurants and pharmaceutical companies. Thai Drug Act BE 2510 (AD 1967) regulates the conditions for a manufacturer to be able to produce, store, or sell pharmaceutical products. A company operating in this field should obtain approval from the Food and Drug Administration of Thailand (FDA) before entering the Thai market.

The food business license in Thailand

Setting up a fast-food restaurant in tourist areas is without a doubt a great business idea in Thailand. For this type of food establishment, you must apply for a food business license. This type of authorization is released by district offices in each city.

To obtain this type of Thai business permit, the premises will be inspected by governmental authorities to ensure they respect safety and health regulations. Also, the alcohol license, issued by the Excise Department, is required when selling alcoholic drinks.

Alcohol licenses are issued for one year, so they are renewable. You can rely on our lawyers in Thailand if you need assistance in obtaining these two business licenses in Thailand.

Business licenses for staffing agencies in Thailand

Another activity that is regulated in Thailand is recruitment. Any staffing agency carrying out headhunting, employer-employee matching, and personnel leasing requires a business license in Thailand. This is the recruitment license issued by the Department of Employment.

For such activities, a company must meet certain requirements, among which having at least one local director and shareholder and suitable premises for its activities. After filing for the recruitment license, the location will be inspected, and provided it meets the necessary conditions, it will be issued its license.

Our Thai attorneys can help you file for such a permit.

How many companies operate in Thailand?

According to recent news:

• a total of 85,300 new companies were incorporated in Thailand, the largest number in the last 10 years;
• their total capital amounted to the equivalent of USD 15.72 billion;
• 29% of these companies were registered in Bangkok.

If you need to know more about obtaining trade and business permits and licenses necessary for your Thai business, please contact our lawyers in Thailand.