The Department of Business Development (DBD) of Thailand has proposed a draft regulation that would remove three types of business from List 3 of the Foreign Business Act (“Businesses in which Thai nationals are not yet ready to compete with foreigners”):
- Telecommunications companies — foreign companies without their own network infrastructure will be allowed to lease telecommunications networks from Thai operators.
- Financial services — activities related to foreign currency exchange between subsidiaries in Thailand.
- Software development — including software related to data management and analysis, predictive analytics, cybersecurity software, software for supporting the operation of modern technological equipment, and software supporting the manufacturing sector.
If the regulation is approved, foreign companies (in which more than 49% of shares are held by foreign individuals or legal entities) will no longer be required to obtain a Foreign Business License prior to commencing commercial operations in these sectors.
We remind you that the most recent amendments to the Foreign Business Act were adopted in June 2019.
Author: Alexandra Agapitova.
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