Please note: The Ministry of Commerce has proposed a Foreign Investment Law (FIL) that has been approved by the Cabinet and that is currently in the parliamentary process. When approved, it will replace the Alien Business Law.

A. Introduction
Aliens in Thailand derive their legal rights primarily from the domestic laws of Thailand. In general, aliens enjoy the same basic rights as Thai nationals.

Restrictions on alien ownership in commercial banks, insurance companies, commercial fishing, aviation business, commercial transportation, commodity export, mining and other enterprises exist under various laws. In addition, Thai participation will frequently be required in those activities seeking promotion from the BOI.

B. The Alien Business Law
The Alien Business Law of 1972 primarily serves to define and narrow the scope of foreign participation in Thai business activities.

An “alien” is defined as a natural or juristic person without Thai nationality and includes:
	A juristic person with at least one-half of shares in its registered capital being held by aliens or juristic persons in which the capital contribution by aliens is valued at least one-half of its total capital
	A juristic person with more than half of the number of its shareholders, partners or members being aliens, regardless of the amount of capital invested by aliens
	A limited partnership, or a registered ordinary partnership of which the managing partner is an alien

C. Businesses Subject to Regulation
Businesses that initiate activities that fall under categories A, B and C (listed below) of the Alien Business Law are subject to the limitations imposed by law. Activities outside of the apparent scope of the Alien Business Law include many manufacturing industries, leasing and lending activities. Some of these businesses may be subject to restrictions under other Thai laws, regulations and practices.

Businesses in Categories A and B are closed to aliens. Alien enterprises granted promotional privileges by the Board of Investment are permitted to engage in a Category B business.

While businesses in Category C remain open, Thai authorities grant permits to foreigners for work in these categories only when they are convinced that such new businesses could not be competently conducted by an organization in which the majority ownership is Thai.

Category A - Closed to Aliens
Agricultural Businesses
	Rice farming
	Salt farming, including manufacture but excluding rock salt mining
Commercial Businesses
	Internal trade in local agricultural products
	Land trade
Brokerage or Agency
	Auctioneering
Service Businesses
	Accounting
	Architecture
	Advertising
	Law
	Barber, hairdressing, and beautification
Other Businesses
	Building construction

	Category B - Closed to Aliens unless promoted by the Board of Investment
	Agricultural Businesses
	Cultivation
	Orchard farming
	Animal husbandry, including silk worm raising
	Timbering
	Fishing
	Industrial and Handicraft Businesses
	Rice milling
	Manufacture of flour from rice field crops
	Manufacture of sugar
	Manufacture of beverage, with and without alcoholic blending
	Manufacture of ice
	Manufacture of drugs
	Cold storage
	Wood processing
	Manufacture of product from gold, silver, niello, or bronze
	Manufacture of casting of images of Buddha and manufacture of alms bowls
	Manufacture of wood carvings
	Manufacture of lacquerware
	Manufacture of all types of matches
	Manufacture of lime, cement, or cement by-products
	Stone blasting or crushing
	Manufacture of plywood, wood veneer, chip board or hard board
	Manufacture of garment or shoes except for export
	Printing press
	Newspaper publication
	Silk combing, silk weaving or printing of pattern or silk pattern
	Manufacture of products from silk, silk treads, silk cocoon or silk material
	Commercial Businesses
	Retailing of all products except those specified in Category C (Below)
	Sale of mining products except those specified in Category C
	Sale of all types of food and beverage except those specified in Category C
	Sale of antiques, period antiques or works of art
	Service Businesses
	Tour agencies
	Hotel business except hotel management
	Business under the law on service-providing establishments
	Photography, photographic developing and printing
	Laundry
	Tailoring and dressmaking
	Other Businesses
	Internal transport by land, water, or air

Category C – Open to Aliens
Industrial and Handicraft Businesses
	Manufacture of animal feeds
	Extraction of vegetable oil
	Manufacture of embroidering and knitting products including weaving, dyeing, and pattern printing
	Manufacture of glass containers including light bulbs
	Manufacture of crockery
	Manufacture of writing and printing paper
	Rock salt mining
	Mining
Commercial Businesses
	Wholesales of all types of products within the country except those specified in Category A (Above)
	Export of all types of products
	Retailing machinery, equipment and tools
	Sale of food and beverage for the promotion of tourism
Brokerage or agency
	Auctioneering
Service Businesses
	Except for those specified in Category A and Category B
Other Businesses
	Other constructions except those specified in Category A

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 recognize the American applicant until such applicant proves its American nationality.

D. Permits
An alien desiring to engage in any business specified in Category C as listed above must submit an application to the Department of Commercial Registration and must receive a permit - an Alien Business License - prior to beginning business activities. Permits will be valid for a fixed period and will be subject to conditions therein stated.

Ministerial Regulations under Section 8 of the Law and recent announcements of the Department established the following standard conditions for companies applying for Alien Business permits:
	The total debt financing used in the business shall not exceed seven times the capital owned by the shareholders, partners and proprietors of the business
	Money remitted from abroad shall not be less than the amount declared as capital investment to be made in Thailand
	The number of Thai and alien directors shall be in proportion to capital held
	At least one person responsible for operating the business must have his domicile in the Kingdom
	Upon expiration of the permit, the portion of the capital of the shareholders, partners or business proprietors owned by Thai nationals shall not be less than that owned by aliens.

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