[ESTABLISHING A BUSINESS ENTITY IN THAILAND] 483
person are also authorized directors or managing partners in the other juristic person. Despite the above-mentioned restrictions, foreigners may still obtain certain privileges for conducting restricted businesses without obtaining a business operation license (but rather merely a business certificate or freely & without a business certificate), as follows: (i) Being granted a business certificate under the Treaty of Amity and Economic Relations between Thailand and U.S.A. except for the following restricted businesses: a) communications; b) transport; c) fiduciary functions; d) banking; e) exploitation of land and natural resources; f) domestic trade in indigenous agricultural products (Remark: the said Treaty of Amity actually expired but since the FTA between Thailand and U.S.A. has not yet been finalized, the Thai Authority still grants business privilege to U.S.A. nationals and corporations) 41 ; (ii) Being granted an investment promotion from the Thailand Board of Investment (“BOI”), and on certain occasions, the Industrial Estate Authority of Thailand (“IEAT”). For your information, the BOI is a government entity which grants support to investors (regardless of their nationalities) which wish to conduct businesses under the promoted businesses governed by BOI. Although there are no clear thin capitalization rules in Thailand, the BOI may prescribe a maximum ratio of equity: debt. You can visit the BOI's website to obtain more details at: http://www.boi.go.th
(iii) Being granted a business certificate for rendering each of 12 types of businesses, under Thai – Australia Free Trade Agreement. 42 This will be subject to certain qualifications, required proportion of shareholding between Thai and Australian investors and related conditions set for each type of such permitted businesses which including Mining ( land and marine mining ), Construction ( Public Utilities Construction/ Transportation Construction that uses special equipment, machinery, technology or expertise ), Hotel business ( Luxurious hotel and resort service ), Restaurant ( Full range of restaurant ), Other categories of Service Business (such as (i). General Consulting Service for ROH / branch or ROH’s subsidiaries; (ii) Meeting Hall; (iii) International Product Exhibition Center; (iv) Wholesale and Retail service relevant to the sale and installation of the products manufactured by the Australian juristic person established in Thailand; (v) Education / Educational Institutes with science and technology expertise such as life sciences, bio – technology and nano technology; (vi) Fun Park and zoo service; (vii) Aquatic animal park service; and (viii) Pier and Anchor service for tourism ships ) In addition, there are 6 types of business that may freely render by a company which having Australian shareholders as part of its investors, without obtaining a business certificate i.e., Retail ( Sale of Telecommunication Equipment ); Wholesale ( Sale of Telecommunication
41 Please visit the DBD’s website, https://www.dbd.go.th/dbdweb_en/ (accessed October 30, 2019) 42 Ibid
ILN Corporate Group – Establishing a Business Entity Series
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