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Exemptions for E-commerce Registration Requirements
09/09/2024
Thailand’s Ministry of Commerce (MOC) has issued a new notification that introduced significant changes to the e-commerce business environment. This new directive will change the registration requirements for businesses engaged in online sales and marketing activities. By offering exemptions to specific types of companies and removing the mandatory registration process, the Thai government aims to streamline the regulatory environment and encourage a more conducive environment for e-commerce growth.
Key points
- New MOC notification exempts certain company types from e-commerce registration requirements.
- Exempted entities include private limited companies, registered partnerships, and public limited companies.
- Previously issued e-commerce certificates for exempted entities are now void.
- The change aims to streamline regulation and encourage e-commerce growth in Thailand.
- Direct marketing registration is still required for online sales platforms, regardless of exemption status.
What is the New Notification?
The MOC’s latest notification, the “Notification Re: Business Regulations that Commercial Operators Must Register and Businesses that Are Not Subject to the Commercial Registration Act, B.E. 2549 B.E. 2567,” was issued on June 4, 2024, and took effect the following day.
This new directive replaces a similar notification from 2010, which had previously required all individuals and legal entities involved in regulated online activities to register their businesses with the local district office.
The key change introduced by the new notification is the exemption of certain company types from the e-commerce registration requirement.
Which Types of Companies are Exempt From Obtaining an E-commerce Certificate?
The following company types are no longer required to register their online activities and obtain an e-commerce certificate from the MOC:
- Private limited companies
- Registered ordinary partnerships
- Limited partnerships (i.e., legal entities under the Civil and Commercial Code)
- Public limited companies (i.e., legal entities under the Public Limited Companies Act)
What Does this Mean for E-Commerce Businesses in Thailand?
With the implementation of this new notification, the previously mandatory e-commerce registration process for the companies mentioned above has been effectively lifted. Businesses operating under these exempted structures can now engage in online sales and marketing without the need to obtain an e-commerce certificate from the MOC.
What Happens to Existing E-commerce Certificates?
The new notification also has implications for businesses that had previously obtained e-commerce certificates. According to the directive, all e-commerce certificates previously issued to the exempted legal entities are now considered void and no longer valid.
Does Direct Marketing Still Require Registration?
While the e-commerce registration requirement has been lifted for certain legal entities, the notification emphasises that the obligation to register for direct marketing and obtain a direct marketing certificate under the Direct Sales and Direct Marketing Act B.E. 2545 (2002) remains in effect. This applies to any online sales or e-marketplace platforms administered by legal entities, regardless of their exemption from the e-commerce registration process.
Direct sales is considered as being “the marketing of goods or services made directly to the consumer at their home, workplace or any other place which is not an ordinary place of business, through a direct sales representative or uni-level or multilevel independent distributors.”
While Direct marketing is considered as being “the marketing of goods or services in a manner of communicating information for the sales of goods or services directly to the consumer at a distance and expecting such consumers to respond and purchase the goods or services from the direct marketing operator.”
How can Belaws help?
For more information about e-commerce in Thailand why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
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Frequently asked questions
What are the e-commerce laws in Thailand?
The primary laws governing e-commerce in Thailand are the Electronic Transactions Act of 2001 and the Computer Crime Act of 2007. These laws provide legal recognition for electronic transactions, regulate electronic signatures, and address computer-related crimes
How do I start an e-commerce business in Thailand?
To start an e-commerce business in Thailand:
- Choose a business structure (e.g., private limited company)
- Register your company with the Department of Business Development
- Obtain necessary licenses and permits
- Set up your online platform
- Comply with relevant laws and regulations, including consumer protection and data privacy laws
What are the e-commerce registration requirements in Thailand?
As of June 5, 2024, certain legal entities are exempt from e-commerce registration, including private limited companies, registered partnerships, and public limited companies. However, natural persons and specific types of partnerships still need to register under the Commercial Registration Act
Do foreigners need special requirements to start an e-commerce business in Thailand?
Yes, foreign companies are impacted about the Foreign Business Act. They usually need to apply for a Foreign Business License (FBL) from the Department of Business Development. Key requirements include:
- Minimum capital of THB 3 million per business
- Debt-to-equity ratio not exceeding 7:1
- At least one authorized director with an address in Thailand
Is it possible to register a company in Thailand online?
While some aspects of company registration can be done online, the complete process typically requires in-person visits to government offices. It’s advisable to consult with a local legal professional or business service provider for the most up-to-date information on registration procedures.
Do I need an e-commerce license in Thailand?
in 2024, many legal entities no longer require a specific e-commerce license. However, if you’re operating as a natural person or certain types of partnerships, you may still need to register. furthermore, a direct marketing license may be required regardless of your business model.
What are the requirements for online businesses in Thailand?
The requirements for online businesses in Thailand are the following:
- Comply with consumer protection laws
- Adhere to data privacy regulations (PDPA)
- Register for direct marketing if applicable
- Ensure proper taxation compliance
- Follow advertising and marketing regulations
Are there any specific visa requirements for foreigners starting an e-commerce business in Thailand?
Foreigners typically need a Non-Immigrant B visa and a work permit to legally work in Thailand. The specific requirements may vary based on your business structure and investment amount. It’s best to consult with the Thai embassy or a legal professional for the most current information.
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