Thailand is taking another step towards the reformation of foreign business law for ease of doing business and aligning Thailand’s investment regime with the Organisation for Economic Co-operation and Development (OECD) Policy Framework for investment. Currently, these businesses are to obtain approvals from the Department of Business Development (DBD) and the regulators directly oversight such businesses. The DBD has proposed to the cabinet for approval on narrowing scope of “Restricted Business” under the foreign business law while approvals from the regulators directly oversight such business remain in place. The proposal is driven by five key strategic objectives: (i) reducing unnecessary licensing procedures, (ii) promoting fair and transparent competition, (iii) attracting advanced technology and highly skilled professionals to Thailand, (iv) supporting Thailand’s transition into a regional service hub and business center, and (v) benefit to overall economic, investment, and employment in Thailand.
Narrowing scope of “Restricted Business” under the Foreign Business Act
The DBD aims to narrow the scope of “Restricted Business” under the Foreign Business Act by removing certain business activities from the list of “Restricted Business” under the Foreign Business Act, which may be categorized into three categories, as outlined below:
1. Business regulated by specific regulators
Aiming to reduce duplicative approval, the DBD proposes to remove certain regulated business which are under supervision of specific regulators comprising:
- Telecommunication business for telecommunication license type one regulated under the Telecommunications Business Act, e.g. telecommunications services which operating without owning infrastructure and/or network.
- Treasury center business regulated under the Exchange Control Act;
- Lending business with collateral regulated under the Securities and Exchange Act and/or the Derivatives Act;
- Derivatives-related intermediaries services; and
- Agricultural futures trading in the Thailand Futures Exchange with physical delivery.
2. Service business provided to group companies
The DBD also proposes to exclude certain services business provide to a company within the group from “Restricted Business” under the Foreign Business Act on the basis that those services are provided solely for a company within the group and could be considered as not competing with Thai business operator. Those services comprise:
- services business relating to administrative management, human resources, and information technology; and
- guarantees provided to the group in Thailand.
3. Other businesses
Other businesses in the list proposed by the DBD include (i) services on leasing limited space for installation of electronic equipment used for financial services, vending or automatic machines used to serve employees and (ii) petroleum drilling services provided exclusively to concessionaire.
Cabinet Approval in May 2026
Another pivotal moment arrived with the Cabinet’s approval in principle of a revision of the Foreign Business Act as proposed by the DBD on 12 May 2026. This revision will eliminate duplicative licensing requirements, particularly for regulated business and to enhance efficiency for foreign investors entering the Thai market. At the same time, the government has emphasized that regulatory oversight remains in place, with approvals still required from relevant regulators, while the policy will help attracting foreign investment, facilitate the transfer of advanced technology, and strengthen Thailand’s overall competitiveness.