What does it take to obtain a Foreign Business License (FBL) for a restricted business, and how long does approval take?
A Thai company in which foreigners hold 50% or more of the shares is legally a "foreigner". If the business it plans to run is on a restricted list under the Foreign Business Act (FBA), it cannot start until it obtains the relevant licence or certificate. The two most common routes are applying for a Foreign Business License (FBL), or first obtaining BOI promotion and then applying for a Foreign Business Certificate (FBC).
1. First decide: do you need an FBL at all?
| Situation | FBL required? |
|---|
| General manufacturing, with no separate local retail, wholesale or services | Usually not |
| Local retail or wholesale (List Three, items 14 and 15) | Yes, unless capital meets the statutory exception threshold (see Are 100% foreign-owned shareholdings permitted in the manufacturing, trading and service sectors?) |
| Consulting, technical services, leasing, repair and other "other services" (List Three, item 21) | Usually yes |
| Activity is BOI-promotable and BOI promotion has been granted | Use the FBC route instead; no separate FBL |
| Only intra-group services such as lending to affiliates, leasing office space to them or management consulting | A ministerial regulation has excluded certain intra-group services from item 21, so an FBL may not be needed; check each service |
2. Requirements for an FBL
Minimum capital: at least THB 3 million per licensed business, remitted from abroad.
Business description: what the business does, its contribution to Thailand (such as employing Thai staff, technology transfer, local sourcing) and why foreign operation is needed.
Compliance record: complete company registration details, shareholder and director documents and financial information, with no violations.
Licence conditions: the licence usually lists ongoing conditions, for example maintaining minimum capital, a debt-to-equity limit and at least one director resident in Thailand. The conditions printed on the licence apply.
3. How long does approval take?
| Stage | Typical time | Notes |
|---|
| Business review and document preparation | 2–4 weeks | A clear business description makes the review much smoother |
| DBD acceptance and review | Within 60 days by law | List Three applications are approved by the Director-General of the DBD after the Foreign Business Committee gives its opinion |
| Supplementary documents and queries | Varies | Vague business descriptions and capital not yet remitted are the most common reasons for requests |
Overall, plan for about 3–4 months. You may not start the restricted business before the licence is issued.
4. FBL or BOI?
If the activity is BOI-promotable, BOI is usually the first option to assess: it solves foreign ownership (through the FBC) and also brings tax incentives. The FBL is the main route only when the activity is outside BOI scope or the company does not plan to apply for BOI. If neither route works, consider restructuring the business or a genuine joint venture with a Thai partner, not a Thai nominee shareholder (see What are the risks of using Thai nominee shareholders?).
5. Legal basis and scope of service
Basis: Foreign Business Act B.E. 2542 (1999), Section 14 (minimum capital), Section 17 (licence application and review period), List Three items 14, 15 and 21; DBD guidance on foreign business licence applications. Z&X provides foreign-ownership assessment, FBL application preparation and follow-up; approval is at the discretion of the DBD.
Related services: Company Registration & Approval Services | BOI Investment Promotion Application
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