Ministry of Commerce to Simplify Business Registration
The Ministry of Commerce is set to streamline business registration by removing ten service industries from List 3 of the Foreign Business Act. This move aims to boost investment in Thailand.
Auramon Sptawean, the director in charge at the Ministry of Business Development, mentioned that the ministry has conducted a review of service operations on List 3, adapting to shifts in the economic landscape.
On April 22, the Cabinet approved an urgent amendment to the Foreign Business Act of 1999. This change is intended to eliminate barriers for businesses and enhance Thailand’s market competitiveness. Auramon indicated that adjustments will focus on stockholding restrictions and types of businesses, and will involve relevant stakeholders from the private sector.
The review will target four main aspects: specific laws and relevant agencies, government initiatives, services geared toward pertinent groups, and activities aligning with concession-specific services.
She noted that the proposal is pending cabinet approval and is anticipated to create a more favorable investment atmosphere for foreign businesses.
The ten service sectors slated for removal include a diverse range, such as financial center services governed by the Exchange Management Act, collateralized lending services regulated by the Securities and Exchange Act, and roles like agent or advisor in futures trading according to the Derivatives Act. Additionally, agricultural commodity trading in the futures market is included.
This list also encompasses software development, which supports the government’s S-Curve Industries initiative, plus management services related to human resources and IT for relevant groups. There are also credit guarantee services under affiliate marketing, leasing of spaces for financial services equipment, and even oil drilling services.
Auramon pointed out that many startups depend on funding from both local and international investors. This trend could potentially diminish Thai ownership as foreign investments rise.
