Thailand's Commerce Ministry has rejected claims that foreigners can now operate hotels, restaurants or tour businesses without a licence under a new Foreign Business Act regulation.
The new rule removes licensing requirements for eight service businesses in three groups, but hotels, tour operators, restaurants, souvenir shops, sports services and language schools are not included, according to Poonpong Naiyanapakorn, director-general of the Department of Business Development.
"These seven businesses are not in the regulation at all," Poonpong said.
The clarification matters to foreign investors and expats considering starting businesses in Thailand. Foreign-owned or foreign-controlled ventures in sectors such as hospitality, food and tourism must still comply with the Foreign Business Act of 1999 and any other sector-specific rules that apply.
Online posts had claimed the change affected businesses closely associated with Thai livelihoods. Critics also said it could harm Thai small and medium-sized firms, weaken economic sovereignty and provide an opening for nominee arrangements.
Poonpong said the measure was not a broad liberalisation of foreign business rules. Instead, it removes duplicate paperwork where another regulator already oversees the activity.
Which services are covered
The first group includes four services already regulated elsewhere: telecommunications services operated without an owned network, treasury centres, securities-backed lending, and agent, adviser and fund manager services for derivatives outside the Derivatives Act.
Network-free telecom operators still need a licence from the National Broadcasting and Telecommunications Commission. Of 525 licences issued in this category, 171 have gone to foreign firms.
Treasury centres are regulated by the Bank of Thailand and serve only companies within the same group, the central bank said. The Securities and Exchange Commission oversees the two financial-service categories and said Thai operators were prepared to compete.
A second group covers administrative, human resources and IT services, plus domestic debt guarantees, when these are provided only between affiliated companies. Officials had approved all 334 applications in this category, Poonpong said.
The final group includes renting part of a company's own premises for staff ATMs or vending machines, aimed at foreign firms with 1,000 to 2,000 workers, and petroleum drilling services. The Energy Ministry, Petroleum Institute of Thailand and PTT Exploration and Production supported removing drilling services, citing high capital and technology requirements and the absence of Thai offshore drilling providers.
Nominee checks tightened
The Cabinet approved the removal of nine businesses from the Act's annex in May. Eight are being handled through ministerial regulation, while agricultural futures trading will be removed by royal decree.
Poonpong said the list had previously been trimmed five times following consultations and approvals from relevant regulators. The Foreign Business Board must review it at least annually.
Since 1 August, the Central Partnership and Company Registration Office has required additional documents from companies with foreign investors or signatories. The department treats new firms with foreign shareholdings between 0.01% and 49.99% as potential nominee risks.
Registrations in that range fell to 163 in August from 894 a year earlier, an 81.77% drop. About 100 appear to be genuine Thai-foreign joint ventures, Poonpong said, while directors and shareholders in the remaining 63 have been asked to explain their arrangements.
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16 September 2026
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