Page 70 - Introduction to Investment Laws in Thailand

the foreign investments or entities must comply with the regulation in the
Foreign Business Act, B.E. 2542 (1999). It has to be noted that if the
foreign investments or entities are classified under the definition of
section 4 of the Foreign Business Act, B.E. 2542, they are not able to own
land in Thailand. Furthermore, the Foreign Business Act, B.E. 2542
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stipulates three lists of annexation to govern the foreign businesses.
Foreign investments are prohibited from operating businesses in the first
list, such as press, radio broadcasting station or radio and television, rice
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farming, plantation or crop growing, livestock farming, etc. In the
second list, the foreign investments may operate the businesses only by
permission from the Minister with the approval of the Council of
Ministers. The businesses in the second list are businesses related to
national safety or security, impacting arts, culture, traditions, customs and
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folklore, hand crafts or natural resources, and the environment. In the
third list, the foreign investments may operate only with permission from
the Director-General, Ministry of Commerce.
In clarifying the land ownership for foreign investments, the first
question is whether the foreign investments are classified as foreign
business or not. If the answer is yes, then the investments are generally
not allowed to own land in Thailand. The second question is whether the
foreign investment can be eligible under sections 86 and 96 of the Land
Code Promulgating Act, B.E. 2497. If the answer to the second question is
yes, then the foreign investors can own the land according to section 96.

3.1.3 Apartment or Condominium Ownership

Thai nationals have no limitation on ownership over apartments or
condominiums. This report defies apartments and condominiums with
similar meanings. Generally, Thai people prefer the word condominium

81 Foreign Business Act, B.E. 2542 Section 8
82 Foreign Business Act, B.E. 2542 Section 8 and see the List Annexed to the
Foreign Business according to the Foreign Business Act, B.E. 2542
83 Foreign Business Act, B.E. 2542 Section 8 and see the List Annexed to the
Foreign Business according to the Foreign Business Act, B.E. 2542

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