Foreign Business Act B.E. 2542 (1999)
Foreign ownership restrictions in Thailand
The Foreign Business Act is the statute that decides which business activities a foreign-majority company may operate in Thailand. It annexes three lists: activities closed to foreigners outright, activities that need permission from the Cabinet, and activities that need a Foreign Business Licence. Everything not listed is, under the Act itself, open to foreign majority ownership, though sector laws can add their own conditions.
How the Act works
The Act defines a “foreigner” to include natural persons without Thai nationality and juristic persons in which half or more of the shares are held by foreigners. A company that is majority Thai-owned falls outside the Act entirely, which is why shareholding structure is the first question in any Thai market entry.
For a foreigner, the three lists work differently. List 1 activities are prohibited: no licence can open them. List 2 activities touch national safety, arts and culture, or natural resources, and require permission from the Minister with the approval of the Cabinet. List 3 activities are ones in which, in the words of the Act, Thai nationals are not yet ready to compete; a foreigner may operate them with a Foreign Business Licence granted by the Director-General of the Department of Business Development with the approval of the Foreign Business Committee.
Two routes sit alongside the licence. Businesses promoted by the Board of Investment, or authorised under industrial estate law, can obtain a Foreign Business Certificate for the promoted activity instead of applying for a licence. And nationals of the United States can rely on the Treaty of Amity and Economic Relations, which gives US-majority companies national treatment in most, though not all, activities. Each route has its own conditions and none of them opens List 1.
Businesses closed to foreigners
Activities foreigners are not permitted to operate for special reasons. There is no licence route; foreign participation requires a majority-Thai structure, and the Act polices nominee arrangements.
| No. | Activity | Mapped TSIC | Exception routes |
|---|---|---|---|
| 1 | Newspaper business, radio broadcasting station business or television station business | 5813601602 | None |
| 2 | Rice farming, plantation farming or crop growing | 011012 | None |
| 3 | Raising of animals | 014 | None |
| 4 | Forestry and timber processing from a natural forest List 1 covers natural-forest activities only. Forestry from a grown (replanted) forest is a List 3 activity. | 02161 | None |
| 5 | Fishery, only in respect of the catching of aquatic animals in Thai waters and within the specific economic zones of Thailand Marine and freshwater capture fishing only. Aquaculture is a List 3 activity. | 031 | None |
| 6 | Extraction of Thai medicinal herbs No single TSIC code cleanly captures this activity; it can arise under agriculture, gathering of forest products or pharmaceutical manufacture depending on the operation. | not mapped | None |
| 7 | Trading and auction sale of antique objects of Thailand or objects of historical value of the country No single TSIC code cleanly captures antiques trading; it can arise under retail of second-hand goods or auctioning. | not mapped | None |
| 8 | Making or casting of Buddha images and monk alms bowls No dedicated TSIC code exists for this activity. | not mapped | None |
| 9 | Land trading The mapped TSIC group covers real estate activities with own or leased property, which is broader than the trading of land the Act restricts. Foreign land ownership is separately restricted under the Land Code. | 681 | None |
Cabinet permission required
Businesses concerning national safety or security, arts and culture, or natural resources and the environment. A foreigner needs permission from the Minister with the approval of the Cabinet, and the Act additionally requires a minimum Thai shareholding and Thai board representation for the operating company, verify the current requirements against the Act.
Chapter 1: Businesses concerning national safety or security
| No. | Activity | Mapped TSIC | Exception routes |
|---|---|---|---|
| 1 | Production, sale, repair and maintenance of firearms, ammunition, gunpowder and explosives; their components; armaments, ships, aircraft or military vehicles; and equipment or components of all types of war materials | 2520 | Cabinet permission, US Treaty of Amity |
| 2 | Domestic transportation by land, water or air, including the domestic airline business Domestic transportation only. International carriage falls outside this item, and sector laws impose their own foreign shareholding caps. | 495051 | Cabinet permission, US Treaty of Amity |
Chapter 2: Businesses affecting arts, culture, traditional customs and folk handicraft
| No. | Activity | Mapped TSIC | Exception routes |
|---|---|---|---|
| 3 | Trading of antiques or art objects that are Thai works of art or Thai handicraft No single TSIC code cleanly captures this activity. | not mapped | Cabinet permission, US Treaty of Amity |
| 4 | Production of carved wood The mapped TSIC class covers other products of wood generally, which is broader than carved-wood production. | 1629 | Cabinet permission, US Treaty of Amity |
| 5 | Silkworm farming, production of Thai silk yarn, weaving of Thai silk or Thai silk pattern printing The restriction is specific to Thai silk. The mapped TSIC group covers spinning, weaving and finishing of textiles generally. | 131 | Cabinet permission, US Treaty of Amity |
| 6 | Production of Thai musical instruments The restriction is specific to Thai instruments. The mapped TSIC class covers musical instrument manufacture generally. | 3220 | Cabinet permission, US Treaty of Amity |
| 7 | Production of goldware, silverware, nielloware, bronzeware or lacquerware The mapped TSIC group covers jewellery and related articles generally. | 321 | Cabinet permission, US Treaty of Amity |
| 8 | Production of crockery or porcelain ware representing Thai arts and culture The restriction is specific to Thai-culture ceramics. The mapped TSIC class covers porcelain and ceramic household ware generally. | 2393 | Cabinet permission, US Treaty of Amity |
Chapter 3: Businesses affecting natural resources or the environment
| No. | Activity | Mapped TSIC | Exception routes |
|---|---|---|---|
| 9 | Manufacture of sugar from sugar cane | 1072 | Cabinet permission, US Treaty of Amity |
| 10 | Salt farming, including the making of salt from salty earth | 0893 | Cabinet permission, US Treaty of Amity |
| 11 | Making of rock salt | 0893 | Cabinet permission, US Treaty of Amity |
| 12 | Mining, including rock blasting or rock crushing Mineral concessions are separately governed by the Minerals Act, which carries its own nationality requirements. | 050708 | Cabinet permission, US Treaty of Amity |
| 13 | Timber processing for the production of furniture and utensils Mapped broadly to wood processing and furniture manufacture divisions; the item is limited to timber processing for furniture and utensils. | 1631 | Cabinet permission, US Treaty of Amity |
Foreign Business Licence required
Businesses in which Thai nationals are not yet ready to compete. A foreigner may operate them with a Foreign Business Licence, or through the BOI promotion or Treaty of Amity routes. Several items carry their own carve-outs, including capital-based exemptions for retail and wholesale, subject to capital thresholds, verify current figures.
| No. | Activity | Mapped TSIC | Exception routes |
|---|---|---|---|
| 1 | Rice milling and production of flour from rice and economic plants | 106 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 2 | Fishery, only in respect of the hatching and raising of aquatic animals | 032 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 3 | Forestry from a grown forest Replanted-forest forestry only. Natural-forest forestry is a List 1 activity. | 021 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 4 | Production of plywood, veneer wood, chipboard or hardboard | 1621 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 5 | Production of lime The mapped TSIC class covers cement, lime and plaster; only lime production is restricted by this item. | 2394 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 6 | Accounting service business The profession is additionally regulated by the Accounting Professions Act, which imposes its own nationality rules on licensed practice. | 692 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 7 | Legal service business Court representation is additionally restricted to Thai-licensed lawyers under the Lawyers Act. | 691 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 8 | Architectural service business Licensed architectural practice is additionally regulated by the Architect Act. | 71101 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 9 | Engineering service business Licensed engineering practice is additionally regulated by the Engineer Act. | 71102 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 10 | Construction, except construction of infrastructure providing basic public services in public utilities or transport that requires special apparatus, machinery, technology or expertise, and except other categories prescribed in ministerial regulations The infrastructure carve-out is subject to a minimum foreign capital requirement, subject to capital thresholds, verify current figures. | 414243 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 11 | Brokerage or agency business, except securities brokerage and agricultural futures trading, brokerage for the purchase and sale of goods or services necessary for production or services amongst affiliated enterprises, brokerage for international trading of domestically manufactured or imported goods, and other categories prescribed in ministerial regulations The international-trading carve-out is subject to a minimum capital requirement, subject to capital thresholds, verify current figures. | 461 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 12 | Auction sale, except international auctions not involving antiques or objects of historical value of Thailand, and other categories prescribed in ministerial regulations No dedicated TSIC code exists for auctioneering. | not mapped | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 13 | Internal trade connected with native products or produce not yet prohibited by law Mapped to wholesale of agricultural raw materials and live animals as the closest fit; the statute language is broader. | 462 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 14 | Retail sale of goods of all kinds, where the aggregate minimum capital or the minimum capital per store is below the level prescribed in the Act Sufficiently capitalised retail operations are exempt, subject to capital thresholds, verify current figures. | 47 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 15 | Wholesale of goods of all kinds, where the minimum capital per store is below the level prescribed in the Act Sufficiently capitalised wholesale operations are exempt, subject to capital thresholds, verify current figures. | 46 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 16 | Advertising business | 731 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 17 | Hotel business, except the hotel management service Hotel management contracts are outside this item; operating the hotel itself is restricted. | 551 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 18 | Guided touring Tour guiding is additionally reserved to Thai nationals under the tourism business and guide legislation. | 791799 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 19 | Sale of food or beverages | 561563 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 20 | Plant cultivation and propagation business | 013 | Foreign Business Licence, BOI promotion, US Treaty of Amity |
| 21 | Other service businesses, except service businesses prescribed in ministerial regulations Residual category: most service businesses not listed elsewhere fall under this item unless exempted by ministerial regulation. Too broad for a meaningful TSIC mapping. | not mapped | Foreign Business Licence, BOI promotion, US Treaty of Amity |
About this data
The activity descriptions above follow the schedule language of the Foreign Business Act B.E. 2542 (1999) in its commonly used English translation. The TSIC mappings are our own editorial work: the Act describes activities in statute language, not classification codes, so every mapping is graded and every mapping on this page is currently graded likely_applies, meaning it is indicative and has not been verified as a legal equivalence. The statute is primary. If a decision turns on whether an activity is restricted, read the Act and take Thai legal advice.
Amounts and thresholds (minimum capital, retail and wholesale exemption levels, committee timelines) are deliberately not stated as figures on this page. They are set by the Act and its ministerial regulations and change over time; verify current figures with the Department of Business Development.
Sources
- Foreign Business Act B.E. 2542 (1999), including Lists 1, 2 and 3 annexed to the Act. Official Thai text and translations via the Office of the Council of State (krisdika.go.th).
- Department of Business Development, Ministry of Commerce (dbd.go.th), the licensing authority for Foreign Business Licences and Certificates.
- TSIC 2009 classification, National Statistical Office of Thailand, as loaded in the classification tree.
Emerhub
Restricted activity? There is usually a route.
Emerhub structures foreign-owned companies around FBA restrictions: Foreign Business Licence applications, BOI promotion, and compliant shareholding structures. Talk through your case before you commit to one.
Talk to Emerhub Thailand