Are you foreign?

Author: | Published: 1 Apr 2007

The Thai government is introducing amending legislation imposing additional restrictions on the participation of foreign shareholders in Thai companies. The amendment is expected to become law in the next few months. This article contains a summary of the most important aspects of the amendment and its effect within the context of parallel legislation.

The definition of "foreigner" is changing

The Thai Alien Business Act restricts foreign ownership of the types of business which are listed in its three Annexes. Foreigners may only operate such businesses with special permission, if at all. There are different regimes for the different types of business listed in each Annex:

Annex one: The Act prohibits foreign participation in certain types of business listed in Annex one for "special reasons". The list of activities includes most forms of media. Annex two: This Annex lists businesses that require cabinet approval for operation by a foreigner. Examples include the...