Page 41 - Introduction to Investment Laws in Thailand

According to section 4 of the Foreign Business Act, B.E. 2542
(1999), the "Foreigner business" means
"(1) Natural person not of Thai nationality.
(2) Juristic person not registered in Thailand.

(3) Juristic person registered in Thailand having the following
characteristics:
(a) Having half or more of the juristic person's capital
shares held by that person under (1) or (2) or a juristic person
having the person under (1) or (2) investing with a value of half or
more of the total capital of the juristic person.

( b) Limited partnership or registered ordinary
partnership having the person under (1) as the managing partner
or manager.

(4) Juristic person registered in Thailand having half or more of
its capital shares held by the person under (1), (2) or (3) or a
juristic person having the persons under (1), (2) or (3) investing
with the value of half or more of its total capital."

Thus, it is clear that any business is considered a foreign business in
Thailand by its shares. Any business which has foreigner ownership of
more than 50 per cent will be deemed as foreign business. According to
section 5 of the Foreign Business Act, B.E. 2542(1999), a foreign business
is able to operate businesses in Thailand by obtaining licenses from the
ministries and/or Cabinet set forth in the Act. In permitting and giving
license to foreign business to operate the government has to consider on
the advantages and disadvantages to the nation's safety and security,
economic and social development, public order or good moral, art, culture
and tradition of the country, natural resource conservation, energy and
environment, consumer protection, size of the enterprises, employment,
technology transfer, and research and development. 43 However, the

43 Foreign Business Act, B.E. 2542(1999) section 5

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