Thailand - US Treaty Companies To Enjoy Ten-Year Extension For Bringing In Minimum Capital
Legal News & Analysis - Asia Pacific - Thailand - FDI - Regulatory & Compliance
23 June, 2019
The Foreign Business Act (“FBA”) requires foreigners intending to operate a business in Thailand under the FBA to have a minimum capital of THB 3 million.
This requirement also applies to foreigners operating a business under the Treaty of Amity and Economic Relations between the United States and the Kingdom of Thailand, B.E. 2511 (1968) ("US Treaty").
However, since 2002, the Ministry of Commerce (“MOC”) has been extending the period in which companies operating a business under the US Treaty can bring in minimum capital ("Relaxation Period"). As a result, those companies are not yet required to comply with the minimum capital requirement.
On 28 May 2019, the Cabinet approved new draft ministerial regulations, further extending the Relaxation Period, which will be ending in August this year, by another ten years until August 2029.
The draft ministerial regulations will be submitted to the Office of the Council of State for review before being published by the MOC.
We will monitor this and keep you informed of further developments.
For further information, please contact:
Peerapan Tungsuwan, Partner, Baker & McKenzie