:: Legal Issues for Foreign Investors  : 1. Foreign Business Act (continue)

List 3 - Businesses in which Thais are not ready to compete in undertakings with aliens

  • Rice milling and production of flour from rice and farm crops
  • Fishery, limited to propagation of aquatic animals
  • Forestry from replanted forests
  • Production of plywood, wood veneer, chipboard, or hardboard
  • Production of natural lime
  • Accounting service undertakings
  • Legal service undertakings
  • Architectural service undertakings
  • Engineering service undertakings
  • Construction, except construction of things that provide basic services, both to the public with respect to public utilities or communications and which require the use of special instruments, machinery, technology or expertise in construction and a minimum capital of the alien of at least 500 million baht
  • Brokerage or agency undertakings, except: 

o Trading in securities or services concerning futures trading in agricultural commodities, financial instruments, or securities
o Trading in or the procurement of goods or services needed for production by, or providing the services of, an enterprise in the same group
o Trading, purchasing (for others) or distributing or finding domestic or overseas markets for selling goods made domestically or imports as an international trading business, with a minimum capital of the alien of at least 100 million baht
o Other lines of business stipulated in Ministerial Regulations




Auctioning, except:

• International bidding that is not bidding in antiques, ancient objects or objects of art that are Thai works of art, handicraft or ancient objects, or of national historical value
• Other types of auction, as stipulated in Ministerial Regulations
  • Domestic trade concerning indigenous agricultural produce or products not prohibited by any present law
  • Retail trade in all kinds of goods with an aggregated minimum capital of less than 100 million baht or a minimum capital for each store of less than 20 million baht
  • Wholesale trade in all kinds of goods with a minimum capital for each store of less than 100 million baht
  • Advertising undertakings
  • Hotel undertakings, except for hotel management services
  • Tourism
  • Sale of food or beverages
  • Plant breeding and propagation, or plant improvement undertakings
  • Doing other service businesses except for service businesses prescribed in Ministerial Regulations.

Many American-owned enterprises have invoked the provisions of the Treaty of Amity and Economic Relations between Thailand and the United States to claim exemption from the Law. The treaty requires national treatment be granted to persons of each country by the other country. To receive protection, Americans must register under the Treaty. Although on paper the Treaty appears self-executing, the Thai Government will not recognise the American applicant until such applicant proves its American nationality.