Foreign Business License requirements in Thailand in 2026: List 3 activities, minimum capital and the Section 17 application process

A foreign-majority company generally needs a Foreign Business License before it runs an activity restricted under List Two or List Three of the Foreign Business Act. Under Section 14 of the Foreign Business Act B.E. 2542 (1999)[1], the minimum capital for each business that requires a license is not less than THB 3 million[1]. The Section 17 application goes to the Department of Business Development (DBD), and the Foreign Business Commission reviews it by weighing the economic benefit to Thailand. Settlr Global's legal advisory and incorporation team checks the foreign ownership route, the restricted activities and the capital needs before anything is filed.

Key takeaways

About the Author

This guide was prepared by Settlr Global's legal advisory and incorporation team, led by Managing Director Gagan Ajmani, who has 15+ years of regional experience across Southeast Asia. Settlr Global reports 200+ companies incorporated, and its legal advisory service covers Foreign Business Licenses that are applied for and kept current[1].

What does the Foreign Business Act regulate?

Every license question starts with whether the company counts as foreign. Under the Foreign Business Act, Thailand generally treats a company as foreign when foreigners hold half or more of its shares. That company may run a restricted activity only through the route its list allows.

A founder should check each planned revenue line against the three lists before choosing a structure. Our Thailand business setup guide shows how this decision feeds into company registration.

Which activities need a Foreign Business License under List Two and List Three?

Once a company is classed as foreign, the license question depends on the exact activity written in its objectives.

Many founders assume that service activities like software consulting fall outside the lists. In practice, many service activities fall under the List Three catch-all for other service businesses unless a ministerial regulation exempts them.

Business objectives should therefore be written precisely, because the DBD assesses the activity as it is described in the application.

What is the minimum capital for a Foreign Business License?

The activity mapping also sets the capital bill. Section 14 of the Foreign Business Act B.E. 2542 (1999)[1] sets the minimum capital for each business that requires a license at not less than THB 3 million[1].

The calculation starts from estimated expenses, with THB 3 million as the floor for each licensed business[2]:

Minimum capital for each licensed business = 25 percent of average annual estimated expenses over 3 years, or THB 3 million if that is higher[2]

A company that applies for two restricted activities would generally need at least THB 6 million. For this reason, we advise clients to describe activities narrowly and to leave out speculative future lines of business until they are actually needed.

For a Thai company, minimum capital means paid-up registered capital. A licensee not registered in Thailand must remit foreign currency: at least 25 percent within the first three months, 50 percent in total within one year and at least 25 percent a year after that. Confirm the current position with the DBD before transferring funds into Thailand[2].

How does the Section 17 application process work?

With the activity and capital settled, the application itself is mostly about evidence. The Foreign Business Commission evaluates what Thailand gains from the foreign business, which explains why the document list goes well beyond corporate paperwork.

Section 5 of the Act directs that permission is considered with regard to effects on economic and social development, employment, technology transfer and research and development, among other factors, so a plan that shows Thai jobs, local spending or technology transfer generally gives the Commission more to weigh than one that only describes the applicant's own revenue.

Step 1: Confirm the restricted activity and its list, and check whether a ministerial regulation exempts it from the List Three catch-all for other service businesses.

Step 2: Set up the company with a capital structure that meets the minimum for each activity and, for List Two, a shareholding structure that meets the Thai shareholding rule[1].

Step 3: Prepare the official application form and the supporting documents.

Step 4: Submit the application to the DBD. A List Three application goes to the Foreign Business Commission for review of the benefits to Thailand, and a List Two application goes through the Minister of Commerce to the Cabinet[3].

Step 5: Await the decision. The Act gives 60 days from filing, and a List Two application goes to the Cabinet, which may take up to 60 more days. If the application is approved, the license must be issued within 15 days. DBD lists an application fee of THB 2,000 and a license fee of THB 20,000 to THB 250,000 for List Three or THB 40,000 to THB 500,000 for List Two[2].

The Act counts the 60 days from the filing date and DBD's flowchart counts from payment of the application fee, but requests for further documents can extend the overall timeframe in practice[1]. Build that buffer into your launch plan rather than committing to a fixed start date.

What changed for Foreign Business Licenses in 2026?

The Ministerial Regulation Prescribing Service Businesses Not Requiring Permission (No. 5) B.E. 2569, published in the Royal Gazette on 28 August 2026, removed eight business categories from the requirement to obtain a Foreign Business License, though those businesses still need approval from their own regulators[4].

The DBD also tightened shareholder verification during the year to address illegal nominee structures. Since 1 August 2026, Order 2/2569 requires an investment statement and an investment confirmation, with 3 months of bank statements, where foreigners hold under 50 percent or can sign for the company, and false statements carry criminal penalties[5].

Before you prepare an application, check whether your activity is among the removed categories, and keep evidence of where each shareholder's capital came from.

When is a Foreign Business License the wrong route?

A full license is one of several routes, and sometimes it is the slowest. The right route depends on the activity, the investors' nationality and what the company actually needs to do in Thailand.

With Settlr Global, for example, an overseas company can hire employees in Thailand without a local entity through the Employer of Record service. Pricing starts from THB 8,999 per employee per month for a local hire or THB 10,999 for an expat hire, and Settlr Global reports a first hire in about 2 days while a license or incorporation decision is still pending.

Frequently asked questions

Does a company with 49% foreign shares need a Foreign Business License?

Generally not, because foreigners hold less than half of the shares, so the company is not treated as foreign under the Act. The Thai shareholders should be genuine investors, since acting as a foreigner's nominee shareholder is an offence under Section 36 of the Act.

How long does a Foreign Business License take in 2026?

The Act gives 60 days from filing for a decision, and the license must then be issued within 15 days. Requests for more documents can extend the timeframe in practice[1].

Can one THB 3 million capital amount cover several restricted activities?

Section 14 of the Foreign Business Act applies the THB 3 million minimum to each business that requires a license[1]. A company with three restricted activities would generally need at least THB 9 million.

Does a BOI-promoted company need a Foreign Business License?

For the promoted activity, it generally receives a foreign business certificate instead. Any activities outside the promotion may still need a license.

Does the foreign director also need a work permit?

Typically yes, if the director works in Thailand, and this is handled separately from the license. See our visa and work permit services for the Non-B visa and work permit steps.

About Settlr Global

Settlr Global is the operating arm of WOWS Global, a Singapore-incorporated corporate advisory and investment banking group, and an all-in-one platform for company setup, accounting and tax, payroll, visas and Employer of Record in Thailand. It brings those services under a single team, so founders do not have to coordinate separate local agencies. The platform has processed payroll and compliance work for 200+ clients across 15+ countries, from early-stage startups to established multinational enterprises. Its Employer of Record service lets companies hire in Thailand in about two days, with or without a local entity.

If you are planning a restricted activity in Thailand and want the ownership route, capital and Section 17 application checked before you file, get in touch with Settlr Global.

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