| Foreign Business Act (1999) Thailand |
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Foreign Business Act, also called the
Alien Business Act B.E. 2542 (1999)
BHUMIBOL ADULYADEJ, REX.
Given on the 24th Day of November 1999 (B.E. 2542)
Being the 54th Year of the Present Reign.
Whereas it is deemed appropriate to amend the law governing the business operations of aliens.
This Act contains certain provisions relating to the restriction of the rights and liberty of a person which Section 29 in conjunction with Section 35 and Section 50 of the Constitution of the Kingdom of Thailand prescribes can be done by virtue of law.
Be it, therefore, enacted by His Majesty the King, by and with the advice and consent of the National Assembly, as follows:
Section 1
This Act shall be called the “Alien Business Act B.E. 2542 (1999)".
Section 2
This Act shall come into force after ninety days from the date of its publication in the Government Gazette.
Section 3
The following shall be repealed:
Section 4
In this Act:
“alien” means:
“capital” means the registered capital of a private limited company or the paid up capital of a public limited company, or the amount of money contributed by the partners or members in such partnership or juristic person.
“minimum capital” means the capital of an alien in the case where such alien is a juristic person registered in Thailand and in the case where an alien is a juristic person not registered in Thailand or a natural person shall mean foreign currency used by the alien at the commencement of engaging in business in Thailand.
“business” means engaging in trade enterprises in agriculture, industry, handicraft, commerce, services or other enterprises.
“permit” means a business operation permit.
“permit holder” means an alien who has been granted a permit.
“certificate” means a business operation certificate.
“certificate holder” means an alien who has been granted a certificate.
“Committee” means the Alien Business Committee.
“officer” means a person appointed by the Minister for the implementation of this Act.
“Registrar” means a person appointed by the Minister as the Registrar for the business of aliens.
“Director-General” means the Director-General of the Department of Commercial Registration.
“Minister” means the Minister who is in charge and control of the execution of this Act.
Section 5
In granting permission for aliens to engage in business under this Act, the benefits of and detriment to national safety and security, economic and social development, public order or the good morals of the people, national art, culture and tradition, preservation of natural resources, energy and environment, consumer protection, size of the enterprise, employment, technology transfer and research and development shall be taken into account.
Section 6
The following aliens are prohibited from engaging in business in the Kingdom:
Section 7
The aliens set out below may engage in business upon obtaining a permit from the Director-General, and shall engage in only the type of business and in the locality announced in the Government Gazette by the Minister with the approval of the Cabinet. In the announcement, the Minister may prescribe any conditions as deemed appropriate.
The application for a permit, issuance of a permit and duration of permission shall be in accordance with the rules and procedures prescribed in ministerial regulations.
If the Director-General does not grant permission to an alien under the first paragraph to engage in business, the alien is entitled to file an appeal with the Minister and the provisions in the first and third paragraphs of Section 20 shall apply mutatis mutandis.
Section 8
Subject to Section 6, Section 7, Section 10 and Section 12,
Section 9
Adjustment to or amendment of the types of businesses under the Annexes attached to this Act shall be made by a Royal Decree, except for the businesses under Annex One or Chapter 1 of Annex Two which shall be made by an Act.
The Committee shall consider and review the types of businesses under the Annexes attached to this Act at least once every year from the date this Act comes into force, and shall propose its opinion to the Minister.
An alien who engages in a business that is not set out in the Annexes attached to this Act before the adjustment to or amendment of the types of businesses under the first paragraph, if that business subsequently becomes a business which requires a permission under this Act and the alien wishes to continue to engage in that business, the alien shall notify the Director-General in order to apply for a certificate in accordance with the rules and procedures prescribed in Section 11.
While the alien is proceeding in accordance with the third paragraph and the certificate has not yet been obtained, the alien shall not be regarded as engaging in a business without permission under this Act.
Section 10
The provisions of Section 5, Section 8, Section 15, Section 17 and Section 18 shall not apply to an alien who has been granted permission from the Government of the Kingdom of Thailand to engage in business under the Annexes attached to this Act for a definite period.
An alien who engages in a business under the Annexes attached to this Act by virtue of a treaty to which Thailand is a party or under which it is bound by obligations shall be exempted from the application of the Sections prescribed in the first paragraph and shall act in accordance with the terms and conditions of that treaty, which may include conferring rights on Thai nationals and Thai enterprises to engage in business in the country of nationality of that alien on a reciprocal basis.
Section 11
If an alien under Section 10 wishes to engage in a business under the Annexes attached to this Act, the alien shall notify the Director-General in accordance with the rules and procedures prescribed in the ministerial regulations in order to apply for a certificate. The Director-General shall promptly issue a certificate to the alien but no later than thirty days from the date of receipt of written notice from the alien, unless the Director-General considers that the notice is not in accordance with the rules and procedures prescribed in the ministerial regulations or Section 10, in which case the Director-General shall notify the alien promptly but no later than thirty days from the date of receipt of written notice from the alien.
The certificate shall specify the conditions prescribed by the Government or as prescribed in the treaty.
Section 12
If the business of an alien has been granted investment promotion pursuant to the law governing investment promotion or has obtained written permission to engage in an industrial or a trading business for export pursuant to the law governing the Industrial Estate Authority of Thailand or other laws and is a business under Annex Two or Annex Three attached to this Act, the alien shall notify the Director-General in order to apply for a certificate. When the Director-General or the assigned officer has examined the accuracy of that investment promotion certificate or written permission, the Director-General shall issue a certificate without delay no later than thirty days from the date of receipt of the notice granting the investment promotion certificate or the written permission, as the case may be. In such case, the alien shall be exempted from the application of this Act, except for Section 21, Section 22, Section 39, Section 40 and Section 42, throughout the period for which the business has obtained investment promotion or permission to engage in industrial or trading business for export, as the case may be.
The issuance of the certificate under the first paragraph shall be in accordance with the rules and procedures prescribed by the Director-General.
Section 13
If there are other laws prescribing in any manner provisions on shareholdings, partnerships or investment of aliens, the granting of permission or prohibition of aliens from engaging in certain types of businesses, or the prescribing of rules relating to engaging in business by aliens, these matters shall be governed by those laws, and the provisions in this Act shall not apply to the extent specifically prescribed by those other laws.
Section 14
The minimum capital which an alien uses for commencing business in Thailand shall not be less than the amount prescribed in the ministerial regulations, which shall not be less than Baht two million.
If the business of the alien under the first paragraph is a business which requires permission under the Annexes attached to this Act, the minimum capital to be prescribed in the ministerial regulations for each business shall not be less than Baht three million.
Ministerial regulations issued in accordance with this Section may also prescribe the time period during which the minimum capital shall be brought or remitted into Thailand.
The provisions of this Section shall not apply to cases where an alien who has brought money or property derived from income from an existing business previously engaged in Thailand for use in commencing another business, or to contribute to or to invest in other enterprises or juristic persons.
Section 15
An alien who may engage in a business under Annex Two shall have Thai persons or juristic persons who are not aliens under this Act holding shares representing not less than forty percent of the capital of that alien juristic person, except where there is an appropriate reason where the Minister with the approval of the Cabinet may allow such shareholding proportion to be lower but not less than twenty five percent, and at least two-fifths of the total number of directors shall be Thai directors.
Section 16
An alien who applies for a permit shall possess the qualifications and shall not possess the prohibited characteristics as follows:
If the applicant is a juristic person, its directors, managers or the persons responsible for the operations of the juristic person who are aliens shall also possess the qualifications and shall also not possess any of the prohibited characteristics prescribed above.
Section 17
In applying for permission to engage in business, an alien shall submit an application to engage in business to the Minister or the Director-General in accordance with the rules and procedures prescribed in the ministerial regulations.
The Cabinet, for a business under Annex Two, or the Director-General, for a business under Annex Three, shall consider granting approval or permission, as the case may be, within sixty days after the date of filing the application. In considering the granting of approval of the Cabinet, if there are necessary reasons whereby the Cabinet may not complete its consideration within such prescribed time, the period of time for consideration can be extended as necessary but for not more than sixty days from the lapse of such period.
When the Cabinet has approved or the Director-General has granted permission under the first paragraph, the Minister or the Director-General shall issue a permit within fifteen days from the date when the Cabinet granted approval or when the Director-General granted permission.
In granting permission the Minister may prescribe conditions as determined by the Cabinet or as prescribed in the ministerial regulations issued pursuant to Section 18 for a business under Annex Two, or the Director-General may prescribe conditions as prescribed in the ministerial regulations issued pursuant to Section 18 for a business under Annex Three.
If the Cabinet does not grant an approval for an alien to engage in a business under Annex Two, the Minister shall notify the alien in writing within thirty days and shall clearly specify the reasons for not granting the approval.
If the Director-General does not grant permission to an alien to engage in a business under Annex Three, the Director-General shall notify the alien in writing within fifteen days and shall clearly specify the reasons for not granting the permission. The alien is entitled to file an appeal with the Minister against the Director-General’s order refusing permission, and the provisions of Section 20 shall apply mutatis mutandis.
Section 18
The Minister, on the recommendation of the Committee, is empowered to issue ministerial regulations prescribing any conditions for compliance by the alien permit holder as follows:
Section 19
If it appears that any permit holder or certificate holder:
In the case of paragraphs (1), (2) and (3), the Director-General shall issue a written notice to the permit holder or the certificate holder requiring compliance with the conditions under the first paragraph of Section 7, the second paragraph of Section 11, or the third paragraph of Section 17, or to duly comply with Section 15, as the case may be, within the period of time the Director-General deems appropriate. If the permit holder or the certificate holder does not comply with the Director-General’s written notice without appropriate reasons, the Director-General is empowered to order a suspension of the use of the permit or a suspension of the business operation for a period as the Director-General deems appropriate, which shall not be more than sixty days from the date of the order. Upon completion of such period, if the alien is still not in full compliance, the Director-General shall consider canceling the permit or certificate or propose to the Minister to consider canceling the permit, as the case may be.
In the case of paragraphs (4) and (5), the Director-General shall consider canceling the permit or propose to the Minister to consider canceling the permit, as the case may be.
Section 20
If the Director-General orders a temporary suspension of the use of the permit or the business operation, or the cancellation of the permit or the certificate under the second paragraph of Section 19, the permit holder or the certificate holder is entitled to file an appeal in writing with the Minister within thirty days from the date of receipt of the order. An appeal shall not stay the enforcement of the order of the Director-General, except when the Minister upon recommendation of the Committee orders a stay.
The Minister shall complete his decision on an appeal within thirty days from the filing date of the appeal. The decision of the Minister shall be final.
Section 21
Subject to Section 7, Section 19 and Section 20, a permit shall be valid until the permit holder ceases its permitted business operation. A certificate shall be valid for the period granted by the Government of the Kingdom of Thailand or as prescribed by the treaty for engaging in such business, or during the period in which that business receives investment promotion or permission to engage in industrial business or trading for export, as the case may be, unless the certificate holder ceases its business operation before such period expires, in which case the certificate shall be valid until then.
The permit holder or the certificate holder shall display the permit or the certificate openly at the business premises of the alien.
If the permit or the certificate is damaged or lost, an application for a substitute shall be filed with the Registrar within fifteen days from the date when the damage or loss has become known.
The application for and the issuing of the substitute permit or certificate shall be in accordance with the form and procedures prescribed by the Minister. The issuing of the substitute shall occur not later than thirty days from the date of receipt of the application. The substitute shall be deemed a document used in place of the permit or certificate until the alien has obtained a new permit or certificate.
Section 22
When the permit or certificate holder ceases its business operation or relocates its office or business premises, such cessation or relocation shall be notified to the Registrar within fifteen days from the date of the cessation or relocation in accordance with the form and procedures prescribed in the ministerial regulations.
Section 23
There shall be an Alien Business Committee comprising the Permanent Secretary of the Ministry of Commerce acting as Chairman of the Committee, a representative of the Office of the National Economic and Social Development Board, a representative of the Office of the Board of Investment, a representative of the Ministry of Defense, a representative of the Ministry of Finance, a representative of the Ministry of Foreign Affairs, a representative of the Ministry of Agriculture and Co-operatives, a representative of the Ministry of Transport and Communications, a representative of the Ministry of Interior, a representative of the Ministry of Labour and Social Welfare, a representative of the Ministry of Science, Technology and Environment, a representative of the Ministry of Industry, a representative of the Ministry of Education, a representative of the Ministry of Public Health, a representative of the Office of Consumers Protection Board, a representative of the National Police Office, a representative of the Board of Trade of Thailand, a representative of the Federation of Thai Industries, a representative of the Thai Bankers Association and not more than five qualified persons appointed by the Minister as members of the Committee. The Director-General of the Department of Commercial Registration shall be a member and the secretary of the Committee.
The qualified persons shall possess knowledge and expertise in economics, law, commerce, science, technology, environment, trade, investment, business management or industry and shall be neither an advisor to a political party nor hold a political office.
For representatives under the first paragraph, if from a government agency, the position of the representatives shall not be lower than Director-General or equivalent; and if from the Board of Trade of Thailand, the Federation of Thai Industries or the Thai Bankers Association, the position of the representatives shall not be lower than a director of that Board, Federation or Association.
Section 24
A qualified member of the Committee shall hold office for a term of two years.
If a member vacates office before his term expires or if the Minister appoints an additional member during the term of office of the appointed member, the person appointed to replace the member or the person appointed to be an additional member shall be in office for a term equal to the remainder of the term of office of the member who was originally appointed.
A qualified member of the Committee who vacates office may be re-appointed but in total shall not exceed two consecutive terms of office.
Section 25
Apart from the vacation of office upon expiration of the term of office under Section 24, a qualified member of the Committee shall vacate office upon:
Section 26
The Committee shall have the powers and duties prescribed in this Act and shall have the following duties:
Section 27
Meetings of the Committee shall be attended by not less than half of the total number of members of the Committee to form a quorum. If the Chairman does not come to the meeting or the Chairman is unable to perform his duty, members of the Committee present at the meeting shall elect one member to act as the Chairman of the meeting.
The decision of the meeting shall be made by a majority vote. One member of the Committee shall have one vote. If there is a tie, the Chairman shall have a casting vote.
Section 28
The Committee shall have power to appoint a sub-committee to consider or to perform any acts as may be assigned by the Committee, and Section 27 shall apply to the meetings of the sub-committee mutatis mutandis.
Section 29
The Department of Commercial Registration, Ministry of Commerce shall act as the Office of the Secretary of the Committee and shall have the following powers and duties:
Section 30
The Registrar and the officer shall have the powers to:
In performing the duties under (2), the owner or the person in possession of the place shall provide reasonable co-operation to the Registrar or the officer. The Registrar or the officer shall not do any act in a threatening manner or conduct a search under the Criminal Procedure Code and shall give at least three business days prior written notice to the owner or the person in possession, except for absolute emergency and necessary reasons. Upon completing the duties, a report in writing on the results of the performance shall be given to the Minister without delay.
Section 31
If any person applies for inspection or a copy of a document, or applies to the Registrar for a certified copy or a photocopy of a document together with a certification, or applies for issuance of a certificate of particulars kept by the Registrar, the Registrar shall grant permission without delay, except where the nature of such document is prohibited from disclosure pursuant to the laws governing official information or pursuant to other laws. The applicant shall pay a fee in the amount prescribed in the ministerial regulations.
Section 32
An officer shall have an identity card issued in accordance with the form prescribed in the ministerial regulations. In the performance of duties, the officer shall produce his identity card to the persons concerned.
Section 33
In the performance of duties under this Act, the members, the Director-General, the Registrar and the officer shall be officials under the Penal Code.
Section 34
Any alien who has obtained a permit or certificate, which permit is suspended or cancelled, or whose business operation under the certificate is suspended and the right of appeal has lapsed, or the Minister has issued a final decision to suspend or cancel the permit or suspend the business operation, but continues to engage in that business, shall be punished by imprisonment for not more than three years or a fine from Baht one hundred thousand to Baht one million, or both, and an additional fine of Baht ten thousand per day throughout the violation period.
Section 35
An alien who has obtained a permit to engage in any business under this Act and jointly engages in a business belonging to another alien who is not permitted to engage in business under this Act, or in a business which is jointly owned by the other alien by showing that the alien is the sole owner of the business so that such other alien can evade or violate the provisions prescribed in this Act, shall be punished by imprisonment for not more than three years or a fine from Baht one hundred thousand to Baht one million, or both, and the Court shall order the termination of that joint business operation or the business operation. If the alien violates the Court’s order, the alien shall be liable to a fine from Baht ten thousand to Baht fifty thousand per day throughout the violation period.
Section 36
A Thai national or a juristic person who is not an alien under this Act who assists, supports or jointly engages in a business prescribed in the Annexes belonging to an alien and in which business the alien is not permitted to engage, or jointly engages in the business of an alien by showing that the person is the sole owner of the business, or holds shares on behalf of an alien in any partnership or private limited company or any juristic person so that the alien can evade or violate the provisions prescribed in this Act, including an alien who allows a Thai national or a juristic person which is not an alien under this Act to conduct such acts, shall be punished by imprisonment for not more than three years or a fine from Baht one hundred thousand to Baht one million or both, and the Court shall order the termination of the assistance or support, or the termination of the joint business operation, or the termination of the holding of shares or being a partner in the partnership, as the case may be. If the alien violates the Court’s order, the alien shall be liable to a fine from Baht ten thousand to Baht fifty thousand per day throughout the violation period.
Section 37
Any alien who engages in a business in violation of Section 6, Section 7 or Section 8 shall be punished by imprisonment for not more than three years or a fine from Baht one hundred thousand to Baht one million, or both, and the Court shall order the termination of the business operation or the enterprise or of being a shareholder or partner, as the case may be. If the alien violates the Court’s order, the alien shall be liable to a fine of Baht ten thousand to Baht fifty thousand per day throughout the violation period.
Section 38
Any alien who engages in a business in violation of Section 14 or the conditions under Section 18(3) shall be liable to a fine from Baht one hundred thousand to Baht one million, and a fine from Baht ten thousand to Baht fifty thousand per day throughout the violation period.
Section 39
Any person who obtains a permit or certificate and fails to comply with paragraph two or three of Section 21, or violates Section 22 shall be liable to a fine of not more than Baht five thousand.
Section 40
Any person who fails to comply with a written notice of inquiry or a summons of the Registrar or the officer, or who does not give facts, or fails to submit documents or evidence upon the request or summons of the Registrar or the officer, or who does not provide the Registrar or the officer with co-operation under Section 30 without appropriate reason shall be liable to a fine of not more than Baht five thousand.
Section 41
If a juristic person commits an offence under Section 34, Section 35, Section 36 or Section 37, the directors, partners or persons who are authorised to act on behalf of that juristic person who connived in the commission of such offence or did not take appropriate steps to prevent the committing of the offence shall be punished by imprisonment for not more than three years or a fine from Baht one hundred thousand to Baht one million, or both.
Section 42
For the offences under Section 39 and Section 40, the Director-General or the person authorized by the Director-General shall have the power to impose a fine. When the accused person has paid the fine in the amount prescribed by the Director-General or the authorized person within thirty days from the date when the fine was imposed, the case shall be dismissed.
Section 43
All Royal Decrees, ministerial regulations, notifications and orders in force on the date when this Act comes into force shall continue to be in force to the extent that they are not contrary to or inconsistent with the provisions of this Act until a Royal Decree, ministerial regulation, notification or order issued in accordance with this Act comes into force.
Section 44
An alien who is entitled to or has obtained permission to engage in business under the Announcement of the National Executive Council No. 281 dated 24 November B.E. 2515 before this Act comes into force shall continue to be entitled or permitted to engage in such business according to the conditions and for the duration of such right or permission.
Section 45
If an alien who is already engaging in a type of business prescribed in the Annexes attached to this Act on the date when this Act comes into force and such business is not prescribed in the Annexes attached to the Announcement of the National Executive Council No. 281 dated 24 November B.E. 2515 wishes to continue to engage in the business, the alien shall notify the Director-General in order to apply for a certificate according to the rules and procedures prescribed in Section 11 within one year from the date this Act comes into force and, while the certificate has not yet been obtained, the alien shall not be regarded as engaging in business without permission under this Act.
Section 46
The Minister of Commerce shall be in charge and control of this Act and shall have the power to appoint the Registrar and the officers and to issue ministerial regulations prescribing fees not exceeding the rates attached to this Act, and to exempt fees and prescribe other matters for compliance with this Act.
Ministerial regulations shall come into force upon their publication in the Government Gazette.
Countersigned by Mr. Chuan Leekpai as Prime Minister
FEE RATES
1. Application for Permit
2. Permit:
3. Certificate = Baht 20,000
4. Substitute permit or certificate = Baht 5,000
5. Appeal
6. Notification of the dissolution or relocation of the office or place of business operation = Baht 1,000
7. Application for amendment of the particulars of the register, permit or certificate = Baht 1,000
8. Inspection or copying of documents = Baht 200 per entity
9. Application for certified copy or photocopy = Baht 100 per page
10. Issuing a certification of the particulars in the register = Baht 100 per subject
ANNEXES ATTACHED TO THE ALIEN BUSINESS ACT B.E. 2542 (1999)
ANNEX ONE
Businesses not permitted to be operated by aliens for special reasons.
ANNEX TWO
Businesses relating to national safety or security, or affecting arts, culture, tradition, local handicrafts or natural resources and environment. Chapter 1 Businesses relating to national safety and security
Chapter 2 Businesses affecting art, culture, tradition and local handicrafts
Chapter 3 Businesses affecting natural resources or environment
ANNEX THREE
Businesses in which Thai nationals are not ready to compete with aliens.
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| Last Updated on Sunday, 10 May 2009 14:02 |
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