Doing Business On Samui (or anywhere in Thailand)

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The following information is provided by Thailand's Board Of Investment (BOI). For more detailed information on mattters such as business statistics for Thailand, taxation, see the BOI's website at http://www.boi.go.th/ (new window)

Overview of establishing a business in Thailand

Setting up a company in Thailand

Reporting requirements for business

Types of business in Thailand

Alien business law

Work Permits

International banking facilities

The following is an overview of establishing a business in Thailand.

As in most countries, there are three kinds of business organizations in Thailand: Sole proprietorships, partnerships, and limited companies. The most popular form of business organization among foreign investors is the private limited company.

Private limited companies require a minimum of seven promoters and must file a memorandum of association, convene a statutory meeting, register the company, and obtain a company income tax identity card. They must also follow accounting procedures specified in the Civil and Commercial code, the Revenue Code and the Accounts Act. A balance sheet must be prepared once a year and filed with the Department of Revenue and Commercial Registration. In addition, companies are required to withhold income tax from the salary of all regular employees.

The Ministry of Industry administers The Factory Act, which governs factory construction and operation, as well as safety and pollution-control requirements. In some cases, factories do not require licenses, in other instances the requirement is simply to notify officials in advance of start-up, and in some cases licenses are required prior to commencing operations. Licenses are valid for five years, and are renewable.

Thailand recognizes three kinds of intellectual property rights: patents, trademarks, and copyrights.

The Patent Act protects both inventions and product designs and pharmaceuticals. The Copyright Act protects literary, artistic works, and performance rights, by making it unlawful to reproduce or publish such works without the owner's permission. The Trademark Act governs registration of, and provides protection for, trademarks.

The Alien Occupation Law requires all foreigners working in Thailand to obtain a Work Permit prior to starting work in the Kingdom, except when they are applying under the Investment Promotion Law, in which case they have 30 days to apply.

Non-Immigrant visas provide the holder with eligibility to apply for a work permit, and allow the holder to work while the work permit application is being considered.

SETTING UP A COMPANY IN THAILAND

A. Corporate Name Reservation
The name to be reserved must not be the same or close to that of other companies. Certain names are not allowed and therefore the name reservation guidelines of the Commercial Registration Department in the Ministry of Commerce should be observed. The approved corporate name is valid for 30 days. No extension is allowed.

B. File a Memorandum of Association
A Memorandum of Association to be filed with the Commercial Registration Department must include the name of the company that has been successfully reserved, the province where the company will be located, its business objectives, the capital to be registered, and the names of the seven promoters. The capital information must include the number of shares and the par value. At the formation step, the authorized capital, although partly paid, must all be issued.

Although there are no minimum capital requirements, the amount of the capital should be respectable enough and adequate for the intended business operation.

The Memorandum registration fee is 50 baht per 100,000 baht of registered capital. The minimum fee is 500 baht, the maximum 25,000 baht.

C. Convene a Statutory Meeting 
Once the share structure has been defined, a statutory meeting is called during which the articles of incorporation and bylaws are approved, the Board of Directors is elected and an auditor appointed. A minimum of 25 percent of the par value of each subscribed share must be paid.

D. Registration
Within three months of the date of the Statutory Meeting, the directors must submit the application to establish the company. Company registration fees are 500 baht per 100,000 baht of registered capital. The minimum fee is 5,000 baht; the maximum is 250,000 baht. 

E. Tax Registration
Businesses liable for income tax must obtain a tax I.D. card and number for the company from the Revenue Department within 60 days of incorporation or the start of operations. Business operators earning more than 600,000 baht per annum must register for VAT within 30 days of the date they reach 600,000 baht in sales.

Reporting Requirements

Specifically, Section 1206 of the Civil and Commercial Code provides rules on the accounts that should be maintained as follows:
 “The directors must cause true accounts to be kept:
 1. Of the sums received and expended by the company and of the matters in respect of which each receipt or expenditure takes place;
 2.  Of the assets and liabilities of the company.”

A. Imposition of Taxes
Companies are required to withhold income tax from the salary of all regular employees.

A value-added tax of seven percent is levied on the value added at each stage of the production process, and is applicable to most firms. The VAT must be paid on a monthly basis.

A specific business tax is levied on firms engaged in several categories of businesses not subject to VAT, based on gross receipts, at a variable rate ranging from 0.1 – 3.0 percent.

Corporate income tax is 30 percent of net profits and is due twice each fiscal year. A mid-year profit forecast entails advance payment of corporate taxes.

B. Annual Accounts
A newly-established company or partnership should close accounts within 12 months from the date of its registration. Thereafter, the accounts should be closed every 12 months. The performance record is to be certified by the company auditor, approved by shareholders, and filed with the Commercial Registration Department, Ministry of Commerce, within five months of the end of the fiscal year, and with the Revenue Department, Ministry of Finance, within 150 days of the end of the fiscal year.

If a company wishes to change its accounting period, it must obtain written approval from the Director General of the Revenue Department.

C.  Accounting Principles
In general, the basic accounting principles practiced in the United States are accepted in Thailand, as are accounting methods and conventions as sanctioned by law. The Institute of Certified Accountants and Auditors of Thailand is the authoritative group promoting the application of generally accepted accounting principles.

Any accounting method adopted by a company must be used consistently and may be changed only with approval of the Revenue Department.

Certain accounting practices of note include:

Depreciation. The Revenue Code permits the use of varying depreciation rates according to the nature of the classes of assets which have the effect of depreciating the assets over periods that may be shorter than their estimated useful lives. These maximum depreciation rates are not mandatory; a company may use lower rates that approximate the estimated useful lives of the assets. But if a lower rate is used in the books of the accounts, the same rate must be used in the income tax return.

Accounting for Pension Plans. Contributions to a pension or provident fund are not deductible for tax purposes unless these are actually paid out to the employees, or the fund is approved as a qualified fund by the Revenue Department and is managed by a licensed fund manager. 

Consolidation. Local companies with either foreign or local subsidiaries are not required to consolidate their financial statements for tax and other government reporting purposes, except for listed companies which must submit consolidated financial statements to the Securities and Exchange Commission of Thailand.

Statutory Reserve. A statutory reserve of at least five percent of the annual net profits arising from the business must be appropriated by the company at each distribution of dividends until the reserve reaches at least 10 percent of the company's authorized capital.

Stock Dividends. Stock dividends are taxable as ordinary dividends and may be declared only if there is an approved increase in authorized capital. The law requires the authorized capital to be subscribed in full by the shareholders.

D.  Auditing Requirements and Standards
Audited financial statements of juristic entities (that is, a limited company, a registered partnership, a branch, or representative office, or a regional office of a foreign corporation, or a joint venture) must be certified by an authorized auditor and submitted to the Revenue Department and (except for joint ventures) to the Commercial Registrar for each accounting year.Auditing standards conforming to international auditing standards are, to the greater extent, recognized and practiced by authorized auditors in Thailand.

Types of Business Organizations

Thailand recognizes three types of business organizations: Partnerships, Limited Companies and Joint Ventures.

A. Partnership
Thai and Western concepts of partnership are broadly similar. Thailand provides for three general types of partnerships:

Unregistered ordinary partnerships, in which all partners are jointly and wholly liable for all obligations of the partnership
 

Registered ordinary partnerships. If registered, the partnership becomes a legal entity, separate and distinct from the individual partners
 

Limited partnerships. Individual partner liability is restricted to the amount of capital contributed to the partnership. Limited partnerships must be registered. 

B. Limited Companies
There are two types of limited companies, i.e. private or closely held companies, and public companies. The first is governed by the Civil and Commercial Code, the second by the Public Company Act.

Private Limited Companies  in Thailand have basic characteristics similar to those of Western corporations. A private limited company is formed through a process which leads to the registration of a Memorandum of Association (Articles of Incorporation) and Articles of Association (By-laws), as its constitutive documents. 

Shareholders enjoy limited liability, i.e., limited to the remaining unpaid amount, if any, of the par values of their shares. The liability of the directors, however, may be unlimited if so provided in the company's memorandum of association or the articles of incorporation. The limited company is managed by a board of directors according to the company's charter and by-laws.

All shares must be subscribed to, and at least 25 percent of the subscribed shares must be paid up. Both common and preferred shares of stock may be issued, but all shares must have voting rights. Thai law prohibits the issuance of shares with no par value. It also stipulates that only shares with par value of five baht or above may be issued. Treasury shares are prohibited.

A minimum of seven shareholders is required at all times. A private limited company may be wholly owned by aliens. However, in those activities reserved for Thai nationals, aliens’ participation is generally allowed up to a maximum of 49 percent.

The registration fee for a private limited company is 5,500 baht per million baht of capital.

Public Limited Companies registered in Thailand may, subject to compliance with the prospectus, approval, and other requirements, offer shares, debentures and warrants to the public and may apply to have their securities listed on the Stock Exchange of Thailand (SET).

A minimum of 15 promoters is required for the formation and registration of the memorandum of association of a public limited company, and the promoters must hold their shares for a minimum of two years before they can be transferred. The Board of Directors of a public limited company must have a minimum of five members, at least half of whom are Thai nationals. Shares must have a face value of at least five baht each and be fully paid up. Restrictions on share transfers are unlawful except those protecting the rights and benefits of the company allowed by law, and those maintaining a Thai/foreigner shareholder ratio. Debentures may only be issued with the approval of three quarters of the voting shareholders.

The registration fee is 2,000 baht per million baht of capital for a public limited company.

C. Joint Venture
A joint venture may be described in accordance with general practice as a group of persons (natural and/or juristic) entering into an agreement in order to carry on a business together. It has not yet been recognized as a legal entity under the Civil and Commercial Code. However, income from the joint venture is subject to corporate taxation under the Revenue Code, which classifies it as a single entity.

D. Other Forms of Corporate Presence
Branches of foreign companies. There is no special requirement for foreign companies to register their branches in order to do business in Thailand. However, most business activities fall within the scope of one or more laws or regulations which require special registration, either before or after the commencement of activities. Foreign business establishments must, therefore, follow generally accepted procedures. It is important to clarify beforehand what constitutes income subject to Thai tax because the Revenue Department may consider revenues directly earned by the foreign head office from sources within Thailand as subject to Thai taxes.

As a condition for approval of an Alien Business License to a branch of a foreign corporation, working capital amounting to a total of five million baht in foreign exchange must be brought into Thailand within certain intervals over a four-year period.

The branch may be allowed to operate for a period of five years, unless a shorter period is indicated in the application as a result of a contract to be performed in Thailand. Extension of the original duration of the license to operate may be granted, provided the working capital required to be brought into Thailand is met.

A representative office of foreign corporations may also be established to engage in limited “non-trading” activities, such as sourcing of goods or services in Thailand for its head office or inspecting and controlling quality of goods which its head office purchases in Thailand. Other activities can cover disseminating information about new products and services of its head office, and reporting to its head office on local business development and activities.

The working capital contributions as discussed above in respect to branches apply.

E. Regional Offices
A regional office of a multinational corporation may also be established to coordinate and direct the operation of the branches and affiliates of the head office in the region on behalf of the head office. 

A regional office has the ability to coordinate and supervise the company's branches and its affiliated companies in the region on behalf of the head office. The regional office may provide these branches and affiliated companies with:

• Advisory and management services
• Financial management services
• Training and personnel development services
• Marketing control and sales promotion plans
• Product development
• Research and development services.

Conditions for Permission to Establish a Regional Office:

• Regional Office must not:
   – Derive any income from its activities. Expenditures incurred by the regional office shall be borne by the head office
   – Have the power to accept a purchase order or make a sales offer
   – Negotiate or enter into business arrangements with any natural or juristic person within the Kingdom.

When a permit to establish a regional office is issued, it may be subject to the following conditions:

• The total debt financing used in the business shall not exceed seven times the portion of the capital owned by shareholders or the owner of the business

• Money used in the regional office shall be remitted from abroad and shall not be less than a total of 5,000,000 baht. During the first year period, at least 2,000,000 baht of the total must be remitted, at least half of which must be remitted within the first six months. Then, no less than 1,000,000 baht should be remitted each succeeding year until the full 5,000,000 baht has been transferred. Documents verifying this transfer must be presented to the Department of Commercial Registration
   
• At least one person who is responsible for operating the regional office must have their domicile in the Kingdom. 

F. Regional Trade and Investment Support Offices
In April, 1996, the Board of Investment announced the establishment of trade and investment support offices would become a new category of activities eligible for investment promotion.

Projects in this category are eligible for BOI non-tax incentives, including:

• Permission to own land for an office
• Permission to bring in foreign nationals to undertake investment feasibility studies
• Permission to bring in as many foreign technicians and experts as required
• Permission to take or remit foreign currency abroad
• No limit on number if shares owned by foreigners.
• The range of activities eligible for promotion are:
• Controlling and advising affiliated companies
• All types of consulting services, except those engaged in:
   – Buying and selling securities
   – Foreign currency exchange
   – Accounting
   – Advertising
   – Legal affairs
   – Architecture
   – Civil engineering.

• Information services related to sourcing and procurement, but not brokerages or agencies
• Engineering and technical services, except these related to architecture and civil engineering
• Testing and certifying standards of products, production and services standards
• Exporting of all types of products
• Wholesaling of all types of products within the country, excluding local agricultural products,  arts & crafts, antiques, and natural resources
• Provision of training on the use of machinery, engines, tools, and equipment
• Installation, maintenance, and repairing of machinery, engines, tools, and equipment
• Calibration of machinery, engines, tools, and equipment
• Computer software design and development.

If there are any other activities deemed appropriate for investment promotion under the Establishment of Trade and Investment Support Offices, the Office of the Board of Investment will consider them on a case-by-case basis.

Eligibility for regional trade and investment support offices.
Applicants must be either companies established under Thai law, or companies planning to establish under Thai law.

Conditions for regional trade and investment support offices:

• Operating licenses must have been acquired from all relevant government agencies
• Operating expenses must amount to no less than 10 million baht per year, which shall consist of sales and administrative expenses, as set forth in the Revenue Code
• Operating plans must be approved by the Board of Investment
• Majority or total foreign ownership is allowed
• Non-tax privileges, only, will be granted.

Alien Business Law 

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

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

 – Service Businesses
 • Accounting
 • Law
 • Architecture
 • Advertising

 – Brokerage or agency
 • Auctioneering
 • Barber, hairdressing, and beautification

 – Other Businesses
 • Building construction

 – Agricultural Businesses
 • Cultivation
 • Orchard farming
 • Animal husbandry, including silk worm raising
 • Timbering
 • Fishing

 – Industrial and Handicraft Businesses 
 • Rice mill
 • 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 material
 • Manufacture of products from silk, silk treads or silk cocoon.

 – 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.

 – Business in Commerce
 • 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

 – Business in Industry and Handicrafts
 • 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

 – Business in Services
 • Except for those specified in Category  A and Category B

 – Other
 • Other constructions except those specified in Category A

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 share-holders, partners or business proprietors owned by Thai nationals shall not be less than that owned by aliens.

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Work Permits

The Alien Occupation Law, adopted in 1973, requires all aliens working in Thailand to obtain a Work Permit prior to starting work in the Kingdom. An updated version of the Act, adopted in 1978, describes the procedures for issuance and maintenance of Work Permits and lists certain occupations from which aliens may be excluded.

A. Exemptions
The Act grants exemptions from the Work Permit requirement to persons occupying the following professions:
• Members of the diplomatic corps
• Members of consular missions
• Representatives of member countries and officials of the United Nations and its specialized agencies
• Personal servants coming from abroad to work exclusively for persons listed under the above items
• Persons who perform duties on missions in the Kingdom under an agreement between the government of Thailand and a foreign government or international organization
• Persons who enter the Kingdom for the performance of any duty or mission for the benefit of education, culture, arts, or sports
• Persons who are specially permitted by the Government of Thailand to enter and perform any duty or mission in the Kingdom.

B. Special Cases
While most aliens must apply for a Work Permit, and may not begin work until the Permit is issued, the Alien Employment Act does provide special treatment in the following circumstances:

• Urgent and Essential Work:
Exemption from Work Permit requirements is granted to aliens who enter the Kingdom temporarily, but in accordance with the immigration law, to perform any work of any “urgent and essential nature” for a period not exceeding 15 days. However, such aliens may engage in work only after a written notification on a prescribed form, signed by the alien and endorsed by his employer, has been submitted to and accepted by the Director-General or his designee.

Aliens entitled to this treatment may enter Thailand with any kind of visa, including a transit visa. The term “urgent and essential work” is not explicitly defined and consequently, the issuance of this sort of exemption is a matter of administrative discretion.

• Investment Promotion
An alien seeking permission to work in the Kingdom under the Investment Promotion Law must submit his application for a Work Permit within 30 days of notification by the Board of Investment that his position has been approved. An alien in this category may engage in authorized work while the application is being processed.

C. Procedures
The Act requires that any alien working in Thailand must obtain a Work Permit before beginning work. Section 8 of the Act stipulates that while a prospective employer may file an application on the alien’s behalf in advance of his commencing work, the actual Work Permit will not be issued until the alien has entered Thailand in accordance with the immigration laws and has presented himself to receive his Work Permit.

The Permit initially will be valid only for the period of the alien’s Non-Immigrant visa permits him to remain in Thailand under the Immigration law. The Work Permit will be subject to renewal in accordance with the renewed or extended visa. For aliens who are holders of a Thai Certificate of Residence, the Work Permit can be renewed annually. The Labor Department, subject to subsequent renewal, will in principle grant an initial duration of one year for the Work Permit. A Work Permit must be renewed before its expiry date or it will automatically lapse.

Applicants for Work Permits may not enter the Kingdom as tourists or transients.

D. Required Documentation 
The following documents must be attached to a Work Permit application: 

• For non-permanent residents: A valid passport containing a Non- Immigrant visa (except for WP 3 applications)

• For permanent residents: A valid passport, residence permit and alien book (except for WP 3 applications)

• Evidence of applicant’s educational qualifications and letter(s) of recommendation from the former employer, describing in detail the applicant’s past position, duties, performance, and place and length of employment. If the documents are in a language other than English, a Thai translation certified as correct by a Thai Embassy (if abroad) or Ministry of Foreign Affairs (if in Thailand) must be attached

• A recent medical certificate from a first-class licensed physician in Thailand stating that the applicant is not of unsound mind and not suffering from leprosy, acute tuberculosis, elephantiasis, narcotic addiction or habitual alcoholism (except for WP 7 applications).

• Three 5x6 cm. full-faced, bareheaded, black and white or color photographs, taken no more than six months prior to the filing of the application

• If the application is to be filed by another person, a valid power of attorney in the prescribed form must be attached with a 10 baht duty stamp

• On the application form, the “job description” entry must be completed with a detailed statement as to what job is expected to be performed, how it is related to other people, and what materials will be used in the work (additional paper to be used if necessary)

• If the job applied for is subject to a license under a particular law, in addition to the Alien Occupation Law, a photocopy of such license, (e.g. teacher’s license, physician’s license, press card from the Public Relations Department, certificate of missionary status from the Office of Religious Affairs, etc.) shall be attached

• If the applicant is married to a Thai national, the original and photocopies of the following must be presented: 
 – Marriage certificate, spouse’s identity card, birth certificates of children, household registration, as well as a photocopy of every page of the applicant's passport

• If the job being applied for is not in Bangkok, the application should be filed at the relevant province’s Department of Employment, or in the absence of such an office, at the province’s city hall

• Additional evidence as requested. It may be necessary to translate any or all documents into Thai.

E. Permitted Activities
Thai law prohibits employers from allowing aliens to perform any function other than that described in the alien's Work Permit. Employers must report changes in employment, transfers and termination of all aliens in their organization within 15 days of any such action. In cases of dismissal, aliens must return their Work Permit to labor authorities in Bangkok at the Alien Occupation division or, if they are in a provincial area, to the province’s Department of Employment. Failure to do so will result in a fine of up to 1,000 baht.

Any alien who engages in work without a Work Permit, or in violation of the conditions of his work as stipulated in his Permit, may be punished by a term of imprisonment not exceeding three months or a fine of up to 5,000 baht, or both. Aliens engaged in work prohibited to them by Royal Decree (see below) shall be liable to imprisonment for a term not exceeding five years or to a fine ranging from 2,000 to 100,000 baht, or both. 

An employer who permits an alien to work in his organization without a Work Permit or to act in violation of the nature of the work specified in the Permit may be punished with imprisonment not exceeding three years or fined up to 60,000 baht or both.

Permit holders must obtain prior permission to change their occupation and/or place of work. Change of employer location or the residential address of the permit holder must be properly endorsed in the Work Permit by the labor authorities. The Alien Employment Act does not prevent an alien from engaging in work in more than one field or for more than one employer.

F. Restricted Occupations
A Royal Decree in 1973 listed 39 occupations and professions that were then prohibited to aliens. This list has been amended on several occasions by subsequent Royal Decrees, the latest one in 1979.

• Labor
• Work in agriculture, animal breeding, forestry, fishery or general farm supervision
• Masonry, carpentry, or other construction work
• Wood carving
• Driving motor vehicles or non-motorized carriers, except for piloting international aircraft
• Shop attendant
• Auctioneering
• Supervising, auditing or giving services in accounting, except occasional international auditing
• Gem cutting and polishing
• Hair cutting, hair dressing and beautician work
• Hand weaving
• Mat weaving or making of wares from reed, rattan, kenaf, straw or bamboo pulp
• Manufacture of manual fibrous paper
• Manufacture of lacquerware 
• Thai musical instrument production
• Manufacture of nielloware
• Goldsmith, silversmith and other precious metal work
• Manufacture of bronzeware
• Thai doll making
• Manufacture of mattresses and padded blankets
• Alms bowl making
• Manual silk product making
• Buddha image making
• Manufacture of knives
• Paper and cloth umbrella fabrication
• Shoemaking
• Hat making
• Brokerage or agency work, except in international business
• Dressmaking
• Pottery or ceramics
• Manual cigarette rolling
• Legal or litigation service
• Clerical or secretarial work
• Manual silk reeling and weaving
• Thai character type-setting
• Hawking business
• Tourist guide or tour organizing agency
• Architectural work
• Civil engineering work

International Banking Facilities

A. Bangkok International Banking Facility

On September 16, 1992 the Ministry of Finance and the Bank of Thailand established rules and conditions for commercial banks to establish international banking facilities in Thailand. The annual fee for participants is 500,000 baht.

A commercial bank that receives a license will be able to undertake international banking facilities (IBF) business for:

• Offshore Lending
 – Accepting deposits or borrowing from abroad in foreign currencies from foreign natural or juristic persons who have no establishment in or business with Thailand. An exception is made for receiving money from foreign banks that have a branch or representative office in Thailand, from foreign branches of Thai commercial banks, and from the Ministry of Finance, the Bank of Thailand, or the Exchange Equalization Funds. These foreign currencies may be lent abroad, to other IBF businesses, and to the Ministry of Finance, the Bank of Thailand and the Exchange Equalization Funds.

 – Acceptance of deposits or borrowing of offshore baht funds from offshore banks, foreign branches of Thai commercial banks and other IBF. These funds may be lent to foreign banks, foreign branches of Thai commercial banks, or other IBF businesses.

• Local Lending
 – Acceptance of deposits, or borrowing from abroad in foreign currencies from foreign natural or juristic persons who have no establishment in or business with Thailand, foreign branches of Thai commercial banks, and other IBFs to lend foreign currencies in Thailand. However, each withdrawal and disbursement must be of an amount not less than US$2,000,000 except in one of the following two cases, where the minimum disbursement is US$500,000:

 • An exporter who has income from export in excess of 50 percent of all income during the last accounting period
 • An exporter who has goods and services that are sold to an exporter who meets the above-specified condition

• Other Related Business
 – Cross-currency transactions with overseas customers, other IBF businesses, the Bank of Thailand, the Ministry of Finance, the Foreign Equalization Funds, banks licensed under the foreign exchange control laws, or local customers to whom such IBF businesses have lent foreign currencies

 – Giving acceptance or guarantee against any debts in foreign currencies when either:

 • The bank is licensed under the foreign exchange control laws; or
 • The parties involved reside outside of Thailand.

 – All matters dealing with letters of credit in cases where the buyer and the seller of goods involved with the letter of credit purchasing agreement both reside abroad and the goods involved in the agreement have not been either exported out of or imported into Thailand.
 – Procuring, or managing the loan syndication procurement of, foreign currency loans from foreign sources to those requiring loans in foreign currencies. 

 – Provide news, financial and general economic information
 – Prepare or analyze investment projects
 – Advise in the purchase, merger or amalgamation of businesses
 – Give financial advice; and
 – Arrange or underwrite debt instruments issued for sale abroad. If the debt instruments are issued from Thailand, this must be undertaken in conjunction with the IBF business of a commercial bank registered in Thailand.
However, these activities must be separated from the accounts of the IBF business – as if the commercial bank were a separate juristic person.