On 12 May 2026, Thailand’s Cabinet approved in principle a draft Ministerial Regulation to remove nine service businesses from the licensing requirements under the Foreign Business Act B.E. 2542 (1999).
The proposed measure aims to reduce overlapping regulatory approvals, streamline business operations and strengthen Thailand’s attractiveness as a regional investment destination.
Important: This regulation is not yet in force. After Cabinet approval in principle on 12 May 2026, the draft must still undergo further legal procedures, including publication in the Royal Gazette, before it becomes legally effective. No confirmed timeline has been announced.
ATA Services Group continues to monitor these regulatory developments closely and assists foreign investors in structuring their business operations in full compliance with Thai law at every stage.
Thailand’s Foreign Business Act B.E. 2542 (1999) (FBA) has long required foreign-owned companies to obtain a Foreign Business License from the Department of Business Development (DBD) before engaging in certain restricted business activities.
However, over time, several of these sectors have become subject to their own specific laws and regulatory approval systems. As a result, foreign investors may be required to obtain approvals from both the sector-specific regulator and the Department of Business Development (DBD), creating unnecessary duplication in the approval process.
The proposed change is therefore intended to reduce overlapping licensing requirements, simplify the regulatory process, and make Thailand more attractive and efficient for foreign investment.
This reform reflects Thailand’s continuing efforts to modernise its foreign business regulatory framework and improve ease of doing business for foreign investors.
Importantly, the proposed removal of these categories does not mean that these sectors will be opened to unrestricted foreign ownership. Rather, the reform is intended to streamline approval requirements for activities that are already supervised by other competent authorities, including the National Broadcasting and Telecommunications Commission (NBTC), the Bank of Thailand (BOT), and the Securities and Exchange Commission (SEC).
The Ministry of Commerce also removed software development from the original draft following concerns over its potential impact on domestic operators. This reflects the government’s attempt to balance investment openness with protection of Thai businesses.
The draft covers nine business categories, organised into three groups. Eight categories will be removed through a Ministerial Regulation, while one category, relating to agricultural commodity futures trading, will proceed through a separate Royal Decree process.
Group 1 – Sectors with dedicated laws and supervisory agencies
Group 2 – Services provided exclusively within corporate groups
Group 3 – Other specific operational services
Once the regulation becomes effective, foreign investors operating in these nine categories would no longer be required to obtain a Foreign Business License from the Department of Business Development (DBD) for those activities.
However, they would still be required to register a legal entity in Thailand and comply with all applicable sector-specific licenses, permits, approvals and conditions imposed by regulatory authorities.
This regulatory adjustment does not change the core ownership restrictions under the Foreign Business Act. Foreign investors must still ensure that their Thai entities are properly structured, duly registered with the Department of Business Development (DBD) and maintain compliance with applicable capital, licensing, and sector-specific requirements.
In parallel, Thai authorities continue to place strong emphasis on the detection and prevention of nominee shareholding arrangements. The DBD has increasingly used data-driven screening tools and inter-agency information to identify corporate structures that may indicate unlawful nominee arrangements or lack of genuine Thai shareholder participation.
Foreign-invested companies should therefore not view this reform as a relaxation of Thailand’s nominee rules. Even where a particular business activity is removed from the Foreign Business License requirement, the company must still maintain a lawful ownership structure, accurate corporate records, genuine shareholder arrangements, and proper governance documentation.
Companies operating in Thailand, particularly those with foreign participation, are advised to review their ownership, director, capital contribution, shareholder funding, and control structures carefully to ensure continued compliance with Thai law.
For foreign companies already operating in Thailand or planning to enter the market in the affected sectors, this proposed change represents a meaningful step forward toward a more streamlined regulatory process.
Once the regulation becomes effective, the removal of one layer of licensing may help reduce setup timelines, lower administrative burdens, and provide a more direct path to compliance.
However, the timing is important. Thailand is moving in two directions at the same time: simplifying certain regulatory pathways while tightening enforcement on other areas, particularly around ownership structures and nominee arrangements. Companies that benefit from simplified licensing must still ensure full compliance with all other applicable legal, regulatory, corporate, tax, labour, and sector-specific requirements.
Past regulatory reforms have sometimes shifted compliance obligations from one regulator to another rather than eliminating them entirely. For this reason, foreign investors should carefully confirm the exact scope of the proposed exemption and assess how it applies to their specific business activities and corporate structure.
ATA Services Group supports foreign companies at every stage of market entry and ongoing operations in Thailand, including company registration, Foreign Business License applications, payroll, HR management, and compliance advisory.
With regional expertise across Thailand, Vietnam, and Malaysia, ATA Services Group provides practical, reliable, end-to-end solutions, helping businesses grow with confidence while maintaining compliance with local regulatory requirements.
Key Insight
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No.
Tourist visas do not authorize work activity in Thailand.
No.
Work can begin only once the digital status is approved.
In most cases, no.
An exit is usually required.
Typically several weeks.
Timing depends on preparation and compliance.
No.
It depends on the violation, response, and enforcement decision.
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