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GENERAL PROHIBITIONS AND RESTRICTIONS

The Thai Government controls the import and export of certain goods into/out of the Kingdom of Thailand. The controls either take the form of:

a complete prohibition, which means that you aredefinately not not allowed to import the goods in any circumstances; or
a restriction, where you need to have written permission in order to import the goods.

Samples OF Prohibited and Restricted Goods

The following information broadly outlines what goods are prohibited or restricted, where you can obtain more information about the control and, in the case of restricted goods, to apply for permission to import.

1. Prohibited Goods are goods for which either the import into or export out of Thailand are prohibited. Any person imports or exports prohibited goods is considered as committing offences and subject to penalties indicated in the relevant national legislation. In addition, such activity is also considered as an offence under Articles 27 and 27 bis of the Customs Act B.E. 2469. It is prohibited by law to bring the following items into Thailand.

Obscene literature
Pornographic materials
Goods with Thai national flag
Narcotics e.g., heroin
Fake currency, bonds, or coins
Fake Royal Seals/official seals
IPR infringing goods e.g. CD etc.
Counterfeit trademark goods}

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As it is very complicated and often impossible to obtain a foreign business license most foreigners operate a business without a foreign business license or exemption even though these business categories are restricted or prohibited for foreigners. These foreigners have a work permit issued under a Thai company and operate their business through a Thai limited company. Thai company means under the current Foreign Business Act that half or more of the shareholders are held by Thais. Foreigners are under the current FBA allowed to have majority voting rights and control in a Thai limited company through preference shares and weighted voting rights. The mostcommon form of business entity among foreign investors is therefore the private limited company.

A Thai company is not subject to the Alien Business Act and when a partly foreign owned Thai company is structured as majority Thai owned it is deemed that the business is operated by a Thai entity (not foreign/alien) and the company will in principle be regarded as a Thai company and therefore, as a Thai juristic person, the company will not be restricted by the Foreign Business Act.

Many foreigners invest in a Thai business or conduct a Thai company with a Thai or foreign partner in the company, in such structures it is recomeded to specify in the articles of assocation (the user's manual of the company) the procedures, duties and authority of directors, such as procedures for the making of decisions and (limited) individual authority to manage and sign on behalf of the company.

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As it is very complicated and very often impossible to obtain a foreign business license most foreigners operate a business without a foreign business license or exemption even though these business categories are restricted or prohibited for foreigners. These foreigners have a work permit issued under a Thai company and operate their business through a Thai limited company. Thai company means under the current Foreign Business Act that half or more of the juristic person's shares are held by Thais. Foreigners are under the current FBA allowed to have majority voting rights and control in a Thai limited company through preference shares and weighted voting rights. The mostcommon form of business entity among foreign investors is therefore the private limited company.

A Thai company is not subject to the Alien Business Act and when a partly foreign owned Thai company is structured as majority Thai owned it is deemed that the business is operated by a Thai entity (not foreign/alien) and the company will in principle be regarded as a Thai owned and therefore, as a Thai juristic person, the company will not be restricted by the Foreign Business Act.

Many times, foreigners invest in a Thai business or operate a Thai company with a Thai or foreign partner in the company, in such structures it is recomeded to specify in the articles of assocation (the user's manual of the company) the procedures, duties and authority of directors, such as procedures for the making of decisions and (limited) individual authority to manage and sign on behalf of the company.

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As it is very difficult and often impossible to obtain a foreign business license most foreigners initiate a business without a foreign business license or exemption even though these business categories are restricted or prohibited for foreigners. These foreigners have a work permit issued under a Thai company and operate their business through a Thai limited company. Thai company means under the current Foreign Business Act that half or more of the juristic person's shares are held by Thais. Foreigners are under the current FBA allowed to have majority voting rights and control in a Thai limited company through preference shares and weighted voting rights. The most popular form of business entity among foreign investors is therefore the private limited company.

A Thai company is immune to the Alien Business Act and when a partly foreign owned Thai company is assembled as majority Thai owned it is deemed that the business is operated by a Thai entity (not foreign/alien) and the corperation will in principle be regarded as a Thai company and therefore, as a Thai juristic person, the company will not be restricted by the Foreign Business Act.

Many foreigners invest in a Thai business or operate a Thai company with a Thai or foreign partner in the company, in such structures it is recomeded to specify in the articles of assocation (the user's manual of the company) the procedures, duties and authority of directors, such as procedures for the making of decisions and (limited) individual authority to manage and sign on behalf of the company.

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