BANGKOK, May 22, 2024: Foreign-owned, -operated or -controlled businesses in Prachuap Khiri Khan are among thousands being scrutinized nationwide for regulatory compliance as part of the latest crackdown.
According to the Bangkok Post see original story at end) the Department of Business Development (DBD) on May 20 briefed diplomats and international organizations in Thailand on regulations under the Foreign Business Act (FBA) of 1999. The meeting emphasized the importance of foreign investors understanding and complying with the law to ensure lawful investment in Thailand. Notably, the use of Thai nominees to operate businesses was highlighted as a focus area.
Attendees included prominent organizations such as the Joint Foreign Chambers of Commerce in Thailand and the Japan External Trade Organization. The FBA serves as the primary legislation governing foreign involvement in Thai businesses, outlining procedures for business establishment and permitted business types, as well as application processes for foreign business licenses and certificates.
The department identified instances where foreign investors were not following legal procedures, such as using Thai nominees to conceal foreign ownership. This year, the department plans to investigate over 26,000 nominee cases across various sectors, including tourism, real estate, hotels, and logistics, with a particular focus on major tourist provinces.
In addition to businesses in Prachuap Khiri Khan (e.g. Hua Hin), also on the radar are those in Chiang Mai, Chon Buri, Surat Thani, Phuket, Bangkok
Recent collaborative efforts with partner agencies involved on-site inspections in several provinces, targeting entities suspected of violating the FBA. The department is also gearing up to launch an online service system, called e-Foreign Business, to facilitate business applications under the FBA, expected to be operational by July 2024.
Additionally, the department is revising the list of restricted businesses for foreigners on an annual basis. Ten service businesses, deemed competitive for Thai nationals, will no longer require a foreign business license prior to conducting business, pending approval by the commerce minister and cabinet after enactment of ministerial regulations.
Author: TriCove.Asia
TriCove.Asia Administrator.