Understanding “FBC” and “FBL” – Essential Licenses for Foreigners Who Wish to Do Business in Thailand

Doing Business in Thailand? Here’s What You Need to Know!

1.Foreign Business License (FBL) License for Foreigners to Operate a Business in Thailand

It is a license that permits foreign companies to operate businesses in Thailand in accordance with the provisions of the Foreign Business Act B.E. 2542 (1999). This license is granted to foreign companies that have applied for permission and received approval from the Ministry of Commerce.

Foreign Business Certificate (FBC)

It is a certificate issued to foreign companies wishing to operate a business in Thailand. The issuance of this certificate is subject to restrictions on the types of businesses permitted, as specified under the Foreign Business Act B.E. 2542 (1999), particularly those listed in **List 3**, which includes businesses that foreigners are either prohibited from operating or may operate only with permission from the Thai government.

Both **FBC** and **FBL** are important legal permits that must be obtained and processed in strict compliance with the procedures specified by Thai law. Businesses must meet the legal conditions as prescribed. It is advisable to consult with professional experts to ensure correct guidance and compliance throughout the application process. 

Key Differences Between FBL and FBC 

• FBL : Used for businesses that require foreign nationals to hold more than 51% or even 100% ownership in activities specified by law.
• FBC : Used for foreign companies that have been granted investment promotion privileges or special permissions.

Click Here! Consult with Experts on Applying for FBL and FBC Licenses

What Types of Businesses Require a Foreign Business License (FBL) in Thailand ?

1. Newly Established Companies with Majority Foreign Shareholders

2.Branch office of a foreign company

3.Companies promoted by the Board of Investment (BOI)

In-Depth Look at the “Foreign Business Certificate (FBC) ”

Procedures for applying for FBC  

The company must apply for FBC Usually, documents and information demonstrating that the foreign company will conduct business in Thailand according to the permitted types must be submitted.

Applying for FBC usually involves having at least 51% Thai shareholders in cases where the business falls under restricted categories according to the Act.

 Cases Where Foreign Business Certificate (FBC) Can Be Applied For, Such As

• Granted investment promotion from BOI.
  - Foreign companies operating businesses promoted by the Board of Investment (BOI).
  - Exceptions on shareholding proportion and types of business as provided by law.

• Granted permission from the Industrial Estate Authority of Thailand (IEAT).
  - Such as companies operating within industrial estates under the IEAT, which are granted special privileges under the law.

• Under international agreements.
  - For example, companies from WTO member countries, the USA, or countries under FTA agreements to which Thailand is bound, allowing them to operate certain types of businesses.

 Examples of Businesses Eligible to Apply for a Foreign Business Certificate (FBC)

• Foreign companies promoted by BOI engaged in software business, R\&D, or digital services.
• Factories located in industrial estates producing goods for export.
• American-owned businesses in Thailand (under the U.S.-Thailand Treaty of Amity).
• Other types of businesses can also consult experts like FDI.

FDI offers comprehensive consulting services for all types of company registrations, business license applications, as well as visa and work permit services for foreigners.Our services cover everything from preparing documents, application submission, and acting as your representative throughout the process. We provide expert guidance and in-depth advice from experienced specialists, supporting organizations, companies, and foreign investors seeking to establish or operate businesses in Thailand. Our services are available in four languages: Thai, English, Japanese, and Chinese. If you require consultation, please contact our staff to schedule an appointment.

Contact Us

• Facebook : FDI Group – Business Consulting
• Line : @fdigroup
• Phone : 02-642-6866, 02-642-6869, 02-642-6895
• E-mail : infojob@fdi.co.th
• Website : www.fdi.co.th