Is Foreigner Allowed To Open Retail Shop Selling Goods?

[BKKDUDE]

1-Can you open a reatail shop that sales items like Bags, shoes, watches, jeans, shirts.... to thais?

2-How about doing Online and onsite real state business helping people find apartments and online hotel booking combined ( i saw one in sukhumvit few years ago and few in phuket as well), Do you "HAVE" to register with TAT ? if can't, what type of real estate activity farang can take part in?

I'm asking this questions because i have never seen any farang shop owner ref#1, Are these kind of businesses are on list " prohibited business" for farang or have some kind of ristrication that put some kind of obstacle on your way of starting one?

Can provide list for me, What other business are that farang are not allowed to take part in?

Edited May 23, 2006 by BKKDUDE

[Sunbelt Asia]

1-Can you open a reatail shop that sales items like Bags, shoes, watches, jeans, shirts.... to thais?

2-How about doing Online and onsite real state business helping people find apartments and online hotel booking combined ( i saw one in sukhumvit few years ago and few in phuket as well), Do you "HAVE" to register with TAT ? if can't, what type of real estate activity farang can take part in?

I'm asking this questions because i have never seen any farang shop owner ref#1, Are these kind of businesses are on list " prohibited business" for farang or have some kind of ristrication that put some kind of obstacle on your way of starting one?

Can provide list for me, What other business are that farang are not allowed to take part in?

List 1

Business that aliens are not permitted to do for special reasons:

(1) Newspaper undertakings and radio and television station undertakings

(2) Lowland farming/upland farming, or horticulture

(3) Raising animals

(4) Forestry and timber conversions from natural forests

(5) Fishing for aquatic animals in Thai waters and Thailand’s exclusive economic zones

(6) Extraction of Thai medical herbs

(7) Trade in and auctioneering of Thai ancient objects or ancient objects of national historical value

(8) Making or casting Buddha images and making monk’s bowls

(9) Dealing in land.

List 2

Businesses concerning national security or safety with an adverse effect on art and culture, customs or native manufacture/handicrafts, or with an impact on natural resources and the environment.

Chapter 1: Businesses concerning national security or safety

(1) Production, disposal (sale) and overhaul of:

(a) Fire arms, ammunition gunpowder and explosives

( Components of fire arms, gunpowder and explosives

© Armaments, and military vessels, aircraft or conveyances

(d) All kinds of war equipment or their components.

(2) Domestic transport by land, water or air inclusive of the undertaking of domestic aviation.

Chapter 2: Businesses with an adverse effect on art and culture, customs or native manufacture/handicrafts

(1) Dealing in antiques or objects of art and works of art, and Thai handicrafts

(2) Production of wood carvings

(3) Raising silkworms, producing Thai silk thread and weaving or printing patterns on Thai silk textiles

(4) Production of Thai musical instruments

(5) Production of articles of gold or silver, nielloware, nickel-bronze ware or laqurware

(6) Production of crockery and terra cotta ware that is Thai art or culture.

Chapter 3: Businesses concerning natural resources and the environment.

(1) Production of sugar from sugarcane

(2) Salt farming, inclusive of making salt from salty earth

(3) Making rock salt

(4) Mining, inclusive of stone blasting or crushing

(5) Timber conversions to make furniture and articles of wood.

List 3

Businesses which Thais are not ready to compete in undertakings with aliens(1) Rice milling and production of flour from rice and farm crops

(2) Fishery, limited to propagation of aquatic animals

(3) Forestry from replanted forests

(4) Production of plywood, wood veneer, chipboard or hardboard

(5) Production of natural lime

(6) Accounting service undertakings

(7) Legal service undertakings

(8) Architectural service undertakings

(9) Engineering service undertakings

(10) Construction except:

(a) Construction of things that provide basic services to the public with respect to public utilities or communications and which require the use of special instruments, machinery, technology or expertise in construction and a

minimum capital of the alien of at least 500 million baht

( Other categories of construction as stipulated in ministerial regulations

(11) Brokerage or agency undertakings except:

(a) Trading in securities or services concerning futures trading in agricultural

commodities, financial instruments or securities

( Trading in or the procurement of goods or services needed for production by or providing the services of and enterprise in the same group

© Trading, purchasing (for others) or distributing or finding domestic or

overseas markets for selling goods made domestically or imports as an

international trading business, with a minimum capital of the alien of at least

100 million baht

(d) Other lines of business stipulated in ministerial regulations

(12) Auctioning, except:

(a) International bidding that is not bidding in antiques, ancient objects or

objects of art that are Thai works of art, handicraft or ancient objects, or of

historical value

( Other types of auction as stipulated in ministerial regulations

(13) Domestic trade concerning indigenous agricultural produce or products not prohibited by any present law

(14) Retail trade in all kinds of goods where the total minimum capital is 100 million baht or more, or the minimum capital of each store is 20 million baht or more.

(15) Wholesale trade in all kinds of goods with a minimum capital for each store of more than 100 million baht

(16) Advertising undertakings

(17) Hotel undertakings, except for hotel management services

(18) Sale of food or beverages

(19) Plant breeding and propagating, or plant improvement undertakings

(20) Doing other service businesses except for service businesses prescribed in ministerial regulations.

As you can see if your retail stores have minimum capital of 100 million Baht or the minimum capital is 20 million Baht, you can own 100% as a foreigner.

If the retail business is less than this amt, you need to obtain either a Foreign Business License or have less than 49% of the shares. If you go with the minor shareholdering structure, you still can control and manage the company.

A draft regulation is being circulated in the Thai government that the following activities would be excepted from List Three which would allow any foreigner to own a business 100% involved in:

Rental of property;

"Leasing business" as defined under the Thai Revenue Code;

Commercial banking;

Lending of money;

Insurance business;

Pawn shops;

Taking of property on deposit;

Warehousing;

Operation of schools;

Operation of entertainment halls;

Hair cutting, styling and operating beauty salons;

Photography and operating photo shops;

Operating laundries;

Tailoring and dressmaking.

www.lawyer.th.com

[clokwise]

List 1

Business that aliens are not permitted to do for special reasons:

(1) Newspaper undertakings and radio and television station undertakings

Hmm... off topic slightly but it would not be a stretch to say that running a website would fit in this category, wouldn't it? I would assume this is a regulation probably written pre-internet. Is there anywhere that explicitly says operating an "internet media undertaking" is allowed by foreigners?

[chuchok]

List 1

Business that aliens are not permitted to do for special reasons:

(1) Newspaper undertakings and radio and television station undertakings

(2) Lowland farming/upland farming, or horticulture

(3) Raising animals

(4) Forestry and timber conversions from natural forests

(5) Fishing for aquatic animals in Thai waters and Thailand’s exclusive economic zones

(6) Extraction of Thai medical herbs

(7) Trade in and auctioneering of Thai ancient objects or ancient objects of national historical value

(8) Making or casting Buddha images and making monk’s bowls

(9) Dealing in land.

List 2

Businesses concerning national security or safety with an adverse effect on art and culture, customs or native manufacture/handicrafts, or with an impact on natural resources and the environment.

Chapter 1: Businesses concerning national security or safety

(1) Production, disposal (sale) and overhaul of:

(a) Fire arms, ammunition gunpowder and explosives

( Components of fire arms, gunpowder and explosives

© Armaments, and military vessels, aircraft or conveyances

(d) All kinds of war equipment or their components.

(2) Domestic transport by land, water or air inclusive of the undertaking of domestic aviation.

Chapter 2: Businesses with an adverse effect on art and culture, customs or native manufacture/handicrafts

(1) Dealing in antiques or objects of art and works of art, and Thai handicrafts

(2) Production of wood carvings

(3) Raising silkworms, producing Thai silk thread and weaving or printing patterns on Thai silk textiles

(4) Production of Thai musical instruments

(5) Production of articles of gold or silver, nielloware, nickel-bronze ware or laqurware

(6) Production of crockery and terra cotta ware that is Thai art or culture.

Chapter 3: Businesses concerning natural resources and the environment.

(1) Production of sugar from sugarcane

(2) Salt farming, inclusive of making salt from salty earth

(3) Making rock salt

(4) Mining, inclusive of stone blasting or crushing

(5) Timber conversions to make furniture and articles of wood.

List 3

Businesses which Thais are not ready to compete in undertakings with aliens(1) Rice milling and production of flour from rice and farm crops

(2) Fishery, limited to propagation of aquatic animals

(3) Forestry from replanted forests

(4) Production of plywood, wood veneer, chipboard or hardboard

(5) Production of natural lime

(6) Accounting service undertakings

(7) Legal service undertakings

(8) Architectural service undertakings

(9) Engineering service undertakings

(10) Construction except:

(a) Construction of things that provide basic services to the public with respect to public utilities or communications and which require the use of special instruments, machinery, technology or expertise in construction and a

minimum capital of the alien of at least 500 million baht

( Other categories of construction as stipulated in ministerial regulations

(11) Brokerage or agency undertakings except:

(a) Trading in securities or services concerning futures trading in agricultural

commodities, financial instruments or securities

( Trading in or the procurement of goods or services needed for production by or providing the services of and enterprise in the same group

© Trading, purchasing (for others) or distributing or finding domestic or

overseas markets for selling goods made domestically or imports as an

international trading business, with a minimum capital of the alien of at least

100 million baht

(d) Other lines of business stipulated in ministerial regulations

(12) Auctioning, except:

(a) International bidding that is not bidding in antiques, ancient objects or

objects of art that are Thai works of art, handicraft or ancient objects, or of

historical value

( Other types of auction as stipulated in ministerial regulations

(13) Domestic trade concerning indigenous agricultural produce or products not prohibited by any present law

(14) Retail trade in all kinds of goods where the total minimum capital is 100 million baht or more, or the minimum capital of each store is 20 million baht or more.

(15) Wholesale trade in all kinds of goods with a minimum capital for each store of more than 100 million baht

(16) Advertising undertakings

(17) Hotel undertakings, except for hotel management services

(18) Sale of food or beverages

(19) Plant breeding and propagating, or plant improvement undertakings

(20) Doing other service businesses except for service businesses prescribed in ministerial regulations.

As you can see if your retail stores have minimum capital of 100 million Baht or the minimum capital is 20 million Baht, you can own 100% as a foreigner.

If the retail business is less than this amt, you need to obtain either a Foreign Business License or have less than 49% of the shares. If you go with the minor shareholdering structure, you still can control and manage the company.

A draft regulation is being circulated in the Thai government that the following activities would be excepted from List Three which would allow any foreigner to own a business 100% involved in:

Rental of property;

"Leasing business" as defined under the Thai Revenue Code;

Commercial banking;

Lending of money;

Insurance business;

Pawn shops;

Taking of property on deposit;

Warehousing;

Operation of schools;

Operation of entertainment halls;

Hair cutting, styling and operating beauty salons;

Photography and operating photo shops;

Operating laundries;

Tailoring and dressmaking.

www.lawyer.th.com

Great answer, you have given us some great government legalese off their web site, but can it be done.

I have seen many shops owned by farang that sell to Thai people.I also know of real estate companies that are run by farung.In plan English, can somebody tell us what is the real story, without having to invest 20MIL THB.

[Galong]

And just remember, if you piss off any Thai, your world will suddenly become a not so fun place to live. If you appear to be taking business from a Thai, your arse is grarse. Get some powerful Thai buddies and make it known that you have these buddies. Nothing seems to beat having powerful friends.

Questions: OK, can a foreigner import condoms that are large enough to actually fit us 'gifted' people??

[Sunbelt Asia]

I have seen many shops owned by farang that sell to Thai people.I also know of real estate companies that are run by farung.In plan English, can somebody tell us what is the real story, without having to invest 20MIL THB.

As we stated before in this post:

or have less than 49% of the shares. If you go with the minor shareholdering structure, you still can control and manage the company.

This is how many foreigners do it in more detail.

1) ABC Co., a private limited company incorporated in Thailand, will be established with two classes of shares; one being Common Shares held by foreign nationals and the other being Preference Shares held by Thai nationals;

2) Preference Shares constitute a majority of the shares in ABC Co. (i.e. 51%) but they have restricted voting rights (i.e. one vote for every ten shares); and

3) Common Shares constitute the balance of the shares in ABC Co. and have the right to receive the balance of dividends (after payment of the preference dividends) and have one vote per share. In this way the Common Shareholders control ABC Co. through their voting rights and may have the right to receive the bulk of the dividends.

The Foreign Business Act looks to the ownership of Thai companies rather than management or control. Therefore, the shareholding structure which effectively gives the Common Shareholders both management control and a disproportionate economic return as discussed is still complying with the Act.

Also It was not mention if you are an American you can own most businesses 100% under the Amity Treaty.

www.lawyer.th.com

[swissie]

With regard to the posting of "Sunbelt Asia":

Perfectly correct! We are basically only allowed to spend our money in Thailand as a (if ever possible) wealthy tourist or a well supported retiree, receiving funds from overseas on a regular monthly basis!!!!

I have spent 1 1/2 years in Thailand to "fathom-out" business opportunities in Thailand and simply came out empty.

Unless you are willing to involve "Thai-Partners", there is no way of setting up any sort of business for a Frarang in Thailand! (Therefore, you will never be really in control of "your business".)

And if your "Thai-Partner" should happen to be your (Thai)- Wife, you are already "cooked and boiled" before you even know it!

All of this can not possibly come as a surprise to anyone that is capable of reading a newspaper or reading up on Thai-Lergislation. On top of that, Mr. Thaksin has repeatedly outlined this official policy in public spaeches. (Thai Rak Thai). Period!

Conclusion: Make your money elsewhere, and visit Thailand as often as you can as a tourist (as such, you will always be welcome).

If you absolutely have the desire to invest in Asia, you may find opportunities elsewhere.

Thailand: Forget it!

Cheers!

[toptuan]

Business that aliens are not permitted to do for special reasons:

(1) Newspaper undertakings and radio and television station undertakings

How does that square away with...

1) the half-dozen or so farang newspaper editors and newsreporters who work for the Bangkok Post?

2) The farang DJ who runs "Bangkok Radio?"

3) The farangs who have or participate regularly in scheduled TV shows:

--Andrew Biggs' daily English-learning TV broadcasts

--The farang co-host of "Oh My God" ("Kuhn Phra Chuay")

Just curious...

[Khutan]

<snip>List 2

Businesses concerning national security or safety with an adverse effect on art and culture, customs or native manufacture/handicrafts, or with an impact on natural resources and the environment.

Chapter 1: Businesses concerning national security or safety

(1) Production, disposal (sale) and overhaul of:

(a) Fire arms, ammunition gunpowder and explosives

( Components of fire arms, gunpowder and explosives

© Armaments, and military vessels, aircraft or conveyances

(d) All kinds of war equipment or their components.

(2) Domestic transport by land, water or air inclusive of the undertaking of domestic aviation.<snip>www.lawyer.th.com

So I can assume from this a Gun Shop would be out of the question

[Sunbelt Asia]

With regard to the posting of "Sunbelt Asia":

Perfectly correct! We are basically only allowed to spend our money in Thailand as a (if ever possible) wealthy tourist or a well supported retiree, receiving funds from overseas on a regular monthly basis!!!!

Over the years, we have set up over 1,000 companies for foreigners who all have legal control over their company. Around 370 of those are owned and managed by 100% foreigners with no Thais involved as a shareholder or Director.

www.lawyer.th.com