Following our client alert in September 2018 regarding certain back office activities soon to be exempted from the Foreign Business Act (FBA), yesterday, 14 May 2019, the Cabinet approved the draft ministerial regulations regarding the same proposed by the Ministry of Commerce (MOC).
The following service activities provided to affiliated/group companies are soon to be excluded from Schedule Three (21) of the FBA:
(i) lending money to affiliated/group companies in Thailand;
(ii) renting out office space including public utilities to affiliated/group companies; and
(iii) providing consultation and recommendations to affiliated/group companies in the following fields:
- human resources; and
- information technology
The next step is the Office of the Council of State will examine the draft ministerial regulations and forward the draft to the MOC. Upon issuance of the ministerial regulations by the MOC, a foreign business license to operate the aforementioned back office activities will no longer be required.
We are closely monitoring the progress and will keep you informed of any updates.