To a relaxation of the law on foreign companies in Thailand ?
The Business Development Department of the Thai Ministry of Commerce will propose to the Council of Ministers to update the Foreign Business Act (FBA, see here).
The goal is to make FBA more flexible but also more efficient. Several previous governments have planned to change the law, which has been effective since 1999 and imposes restrictions on foreign ownership of Thai companies while trying to facilitate investments in Thailand in the same time. A working committee was established to review the changes that could be made to the Foreign Business Act.
“The changes will focus on the compromise to ensure fair competition for Thai and foreign investors and facilitate further business growth.” The amended law should make the environment more attractive to foreign investors and simplify business regulations. In addition, Thailand would be able to compete in the regional integration to come with ASEAN.
One of the proposals is to remove some industries from Annex III of the FBA, which lists the prohibited for non-Thai industries. Banking and insurance could be open to foreigners, as they already have their own specific laws. No information yet on a possible relaxation of the requirement that 51% of any company in Thailand has to be owned by Thais.
To be continued …
