The Foreign Business Act defines an alien as 'somebody not of Thai nationality'. It then goes on to state in List 3 of business areas prohibited to 'aliens', unless special permission is granted, that an 'alien' may not engage in activities of retail of any kind of goods in a retail operation that holds less than 20million baht in stock at each store.

Therefore my questions are:

If I want to form a partnership with my wife OR form a company to open a foreign food shop or bar or restaurant, then I think this is still NOT LEGAL as I would be an alien engaged in retail business at an outlet holding less than 20million baht in stock - am I correct or not?

How then are there so many foreigners in Thailand operating bars / small supermarkets if this contradicts the Alien Business Act?

Even though an alien acting as a manager in these kind of establishments is not serving on the floor, he/she is still an alien working in a trade that requires special permission, no?

Confused!?!??! Help please!

The Foreign Business Act defines an alien as 'somebody not of Thai nationality'. It then goes on to state in List 3 of business areas prohibited to 'aliens', unless special permission is granted, that an 'alien' may not engage in activities of retail of any kind of goods in a retail operation that holds less than 20million baht in stock at each store.

Therefore my questions are:

If I want to form a partnership with my wife OR form a company to open a foreign food shop or bar or restaurant, then I think this is still NOT LEGAL as I would be an alien engaged in retail business at an outlet holding less than 20million baht in stock - am I correct or not?

Not correct. It will be perfectly legal. As a foreigner you can do that as long as you have up to 49% of the shares. Then the body engaging in the activity is not foreign.

How then are there so many foreigners in Thailand operating bars / small supermarkets if this contradicts the Alien Business Act?

Two options:

1. They formed a limitied partnership or company, having up to 49% of shares

2. They are doing it illegaly

Even though an alien acting as a  manager in these kind of establishments is not serving on the floor, he/she is still an alien working in a trade that requires special permission, no?

As a foreigner you can work almost in any job as long as you have a work permit. Serve, manage, whatever. That is as long as the commercial body operating the business isn't foreign.

Toddy -

Go to http://www.thailawforum.com/database1/foreign.html

Look at Section 4, Subsection 3).

Once you parse this out, you find that a company is "Thai" so long as a majority of its shares are held byThais.

Cheers!

Steve

Indo-Siam