Foreign Business License in Thailand.
The Foreign Business Act restricts many activities to Thai nationals or majority-Thai-owned companies. An FBL is the formal route through the Ministry of Commerce for foreign-majority companies in restricted categories.
What is the Foreign Business Act — and the license under it?
The Foreign Business Act B.E. 2542 (1999) is the law that decides what a foreigner may and may not do in business in Thailand. It defines who counts as a "foreigner" and lists the activities reserved or restricted for Thai nationals.
Where an activity is restricted, a foreign-majority company can still operate it — but only with permission: a license from the Minister of Commerce with Cabinet approval for the more sensitive activities, or from the Director-General with the Foreign Business Committee's approval for the rest. A Foreign Business License is that permission. Operating a restricted activity without it carries real consequences, including fines that can reach THB 1 million and, in serious cases, imprisonment.
The three lists under the Act.
The Act sorts restricted activities into three schedules. Which list your activity falls in sets the approval route, the equity ceiling, and whether foreign ownership is possible at all.
List 1 — closed
Activities tied to the essence of Thai life and culture — newspapers and broadcasting, rice farming, land trading, extraction of Thai herbs, trade in Thai antiques. Reserved for Thai nationals; no foreign-majority license is available.
List 2 — Cabinet approval
Activities touching national security, arts and culture, or natural resources — domestic transport, firearms, Thai handicrafts, mining. Permitted with a license from the Minister of Commerce and Cabinet approval; at least 40% Thai-held (reducible to 25%) and Thai directors making up no less than two-fifths of the board.
List 3 — committee approval
Sectors where Thai businesses are seen as not yet ready to compete — most service businesses, including accounting, legal, engineering and architecture, retail, wholesale, and tourism. Opened to foreign majority via a Foreign Business License from the Director-General with the Foreign Business Committee's approval.
What the license requires — and what it costs.
An FBL comes with capital and conduct conditions, and with a published fee schedule and decision window.
Requirements & conditions
- Minimum capital of at least THB 3 million for a restricted activity — or 25% of the project's average annual expenditure over its first three years, whichever is higher
- Capital remitted into Thailand within three years
- Applicant conditions: at least 20 years old, lawful residence or entry, not bankrupt or incapacitated, and free of relevant convictions in the past five years
- For a company applicant, its foreign directors and responsible persons must meet the same qualifications
- Possible terms on Thai-staff numbers and ongoing reporting
Fees & timeline
- Decision due within 60 days of a complete submission
- License normally issued within 15 days of approval
- A refusal can be appealed to the Minister within 30 days
- Indicative government fees: around THB 40,000 for a List 2 license and THB 20,000 for List 3 (set by ministerial regulation — confirmed at the time of filing)
List 2 matters take longer in practice because they need Cabinet approval.
License or certificate — which one applies?
A company is treated as "foreign" under the Act when more than half of its shares are held by non-Thais (or it has a foreign managing partner). How such a company is authorised depends on why it qualifies.
- Foreign Business License (FBL) — the discretionary permission granted, case by case, to a foreign-majority company in a restricted List 2 or List 3 activity.
- Foreign Business Certificate (FBC) — issued instead where the activity is already covered by BOI or IEAT promotion or a treaty such as the US–Thai Amity Treaty. It is a faster, notification-based route, not a discretionary license.
If your activity fits a BOI category, BOI promotion is almost always the stronger route — tax holidays, a faster process, and more benefits. We give an honest read on which instrument suits before any application is prepared.
How an FBL application moves, step by step.
From classifying the activity to operating under the granted license — the regulatory path and the points where the case is won or lost.
Classify the activity
We place the activity within Lists 2 and 3, compare it against BOI and treaty options, and give an honest read on the likelihood of a grant.
Build the application
We draft the narrative — economic benefit, technology transfer, employment — and structure the capital to meet the threshold.
Submit to the DBD
The file is lodged with the Department of Business Development and tracked through the Foreign Business Committee (or, for List 2, the Cabinet route).
Decision & grant
A decision follows within 60 days of a complete submission; on approval the license issues within about 15 days, usually with conditions. A refusal can be appealed to the Minister within 30 days.
Implement & comply
Capital injection, registration updates, and the operational changes the license requires — then ongoing compliance with its terms.
How we help with your FBL application.
Unlike BOI promotion, which works against published criteria, the Foreign Business License is granted at the Ministry's discretion based on a balance of factors — technology transfer, contribution to the Thai economy, capital, and competitive impact on Thai businesses.
We prepare FBL applications for clients whose business does not fit a BOI category but who still need foreign-majority ownership. The work centres on building a credible case that the activity benefits Thailand — through technology, capital, employment, exports, or services not otherwise available locally.
Most FBLs are granted with conditions: minimum capital — at least THB 3 million for a restricted activity, or 25% of the project's average annual expenditure over its first three years if that figure is higher, remitted into Thailand within three years — together with Thai-staff requirements and reporting obligations. We negotiate these where there is room and document compliance afterwards.
The regime is also moving. In 2025 the Cabinet approved a shift in policy from protecting Thai business to building competitiveness, and draft instruments approved in 2026 remove the license requirement from a first set of activities — including intra-group administrative, HR and IT services and certain treasury functions. In parallel, the DBD has intensified enforcement against nominee-shareholder arrangements. We track both threads so your structure is built for the rules as they actually stand when you file.
What we do
- FBL feasibility assessment against Lists 2 and 3 of the Foreign Business Act
- Application narrative drafting — economic benefit, technology transfer, employment
- Capital structuring to meet minimum thresholds
- Application preparation and submission to the Department of Business Development
- Coordination through the Foreign Business Committee review
- Conditions negotiation where the granted license comes with terms
- Post-grant compliance and reporting setup
What you get
- Honest feasibility assessment upfront — if BOI is a better route, we say so
- Bilingual application files
- Coordinated with company incorporation and work permits
How we work
Feasibility assessment
Activity classification under the Foreign Business Act, comparison with BOI options, and honest read on likelihood of grant.
Application build
Drafting the application narrative, capital structuring, supporting evidence.
Submission & review
Filing with the Department of Business Development; tracking through the Foreign Business Committee.
Grant & conditions
License issued, typically with conditions. We document these and set up compliance.
Implementation
Capital injection, registration updates, and operational changes required by the license.
Speak with our team
Send a message — typical response within one hour during office hours.
WhatsApp +66 95 332 2447 Send an Enquiry Call +66 2 026 0600Frequently asked
BOI vs FBL — which should I apply for?
If your activity fits a BOI category, BOI is almost always better — tax holidays, faster process, more benefits. FBL is the route for activities that don't fit BOI but still need foreign-majority ownership.
How long does an FBL take?
The Ministry of Commerce must decide within 60 days — but that statutory clock starts only once the filing is accepted as complete. Counting from first submission, total elapsed time is typically 60–90 days, and more complex applications or those requiring committee review can take 120+ days.
What's the minimum capital for an FBL?
THB 3 million per restricted activity for List 3 (services). List 2 shares the same THB 3 million minimum but carries additional conditions — minimum Thai shareholding and Cabinet approval. We work this into the structuring.
Is a Foreign Business Certificate the same as an FBL?
No. A Foreign Business Certificate (FBC) is issued for activities that have an exemption under treaties (e.g. Treaty of Amity for US citizens, or under BOI promotion). An FBL is the discretionary license for everyone else.
Reviewed by the Khonsu Legal team · 1 July 2026
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