Date: August 12, 2026

What is a Foreign Business License and when do I need one?

A Foreign Business Licence (FBL) is official permission from the Thai government that allows a foreign-owned company to carry out certain business activities that would normally be restricted under the Foreign Business Act. Not every foreign-owned company needs an FBL, as it depends on the type of business and how it is structured.

What We See In Practice

I would like my company to be 100% foreign owned. Does that mean I need a Foreign Business Licence?

WHAT CLIENTS ASK US

Not necessarily. Many foreign investors assume an FBL is required simply because they own all the shares in a Thai company. In reality, it depends on the type of business you plan to operate. Some activities are unrestricted such as export and manufacturing are unrestricted, while others may be eligible for a Board of Investment promotion. If the business either of these options does not apply a FBL will be required to operate as a foreign owned business.

Thailand’s Foreign Business Act restricts foreign ownership in a number of business activities, including a lot of the popular choices for foreign investors. If your proposed business falls within one of these restricted categories and is not eligible for BOI promotion, a Foreign Business Licence may be required before a foreign-owned company can begin operating in Thailand. It is important to be aware that Foreign Business Licences are very difficult to receive approval for, with applicants usually needing to demonstrate that the business will provide benefits to Thailand, such as investment, technology transfer, or employment opportunities.

A Foreign Business Licence is only one of several ways a foreign investor can operate a business in Thailand. Many businesses instead qualify for BOI promotion, which can allow 100% foreign ownership without the need for an FBL. Others carry out activities that are not restricted under the Foreign Business Act and can therefore operate as a foreign-owned company without applying for a licence.

Author: Vincent Birot

Vincent Birot is a French-trained international business lawyer based in Bangkok. He holds a Master’s degree in International Business Law from La Sorbonne and an LL.M in International Commercial Law from the University of Exeter (UK), and has passed the Paris Bar examination. He is the Founder of Belaws, a one-stop platform for legal and corporate matters, facilitating access to trusted legal and business professionals who deliver compliant, practical solutions aligned with local laws and on-the-ground realities. He has advised foreign investors for over 10 years on corporate structuring, BOI promotion, cross-border tax, and regulatory compliance in Thailand. He previously served as Vice President of the Franco-Thai Chamber of Commerce and is a founding member of French Tech Bangkok.