Foreign business law in Thailand 4

Foreign Business Act

B.E. 2542 (1999)

(continued)

      Section 12. In the case where the business of a foreigner that is promoted under the investment promotion law or permitted in writing to operate the industry or trade for export under the law governing the Industrial Estate Authority of Thailand or other laws are classified in List Two or List Three attached hereto, the foreigner shall notify the Director-General in order to obtain a Certificate. After the Director-General or his assigned Competent Official has examined the validity of the investment promotion certificate or the permit, the Director-General shall issue the Certificate rapidly but shall not exceed 30 days from the date on which he is notified of the acquisition of the investment promotion certificate or the permit as the case may be. In such case, the foreigner shall be exempted from the implication of this Act, except for Section 21, Section 22, Section 39, Section 40, and Section 42, throughout the period that the business is investment promoted or permitted for the export industry or trade operation as the case may be.
     The issuance of the Certificate under paragraph one shall be in accordance with the rules and procedures prescribed by the Director-General.
     Section 13. In the case where the provisions of other laws regulate shareholding, foreigners' partnership or investment, permission or prohibition for the foreigners in operating certain businesses or prescribe rules on the foreigner's business operation, the laws shall prevail and the provisions of this Act shall not be applicable to the areas that the other laws specifically govern.

    Section 14. The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than two million Baht.
     In the case where the businesses in the preceding paragraph require the license under the Lists attached hereto, the minimum capital to be prescribed in the ministerial regulations for each of the businesses shall in no case be less than three million Baht.
     Ministerial regulations issued by virtue of this Section may also prescribe the time for the minimum capital to be brought or remitted into Thailand.
     The provisions of this Section shall not apply in the events where the foreigners make the invest with the money or property derived from the business operation that has previously been in operation in Thailand in another business or use them as a share or an investment in other enterprises or juristic persons.
     Section 15. The foreigners may operate the business under List Two only if Thai nationals or juristic persons that are not foreigners under this Act hold the shares of not less than 40% of the capital of that foreign juristic persons. Unless there is a reasonable cause, the Minister with the approval of the Cabinet may reduce the proportion requirement but it shall not be less than 25 percent and the number of Thai directors shall not be less than two-fifths of the total number of directors.
     
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