For decades, the Foreign Business Act B.E. 2542 (1999) has required foreign-majority companies wishing to operate certain service businesses in Thailand to obtain a Foreign Business License (FBL) from the Department of Business Development (DBD). The process has historically taken three to six months, imposed capital requirements, and added a layer of regulatory cost on top of sector-specific licensing already required by other agencies.
That landscape is shifting. Following the Cabinet’s commitment to Foreign Business Act liberalisation in April 2025 and a DBD public consultation that closed on 30 April 2026, the Thai Cabinet issued Cabinet Order No. 226 on 14 May 2026, approving in principle a draft Ministerial Regulation that would exempt nine service categories under List 3 of the FBA from the FBL requirement entirely.
Why this matters: This is the largest single batch of FBA service exemptions since the Act took effect. Once enacted, eligible foreign companies will be able to operate in these categories without seeking prior DBD approval, reducing setup timelines and ongoing compliance costs.
The Nine Exempted Business Categories
Group 1: Regulated Service Businesses, comprising:
1.1 Telecommunications service businesses requiring a Type 1 Telecommunications Business License (under the law governing telecommunications businesses);
1.2 Treasury center businesses (under the exchange control laws);
1.3 Various forms of secured lending businesses where securities are used as collateral (under the Securities and Exchange Act and the Derivatives Act);
1.4 Businesses providing services as agents, dealers, advisors, or fund managers in relation to derivatives contracts where the underlying goods or reference variables are not governed by the Derivatives Act B.E. 2546 (2003); and
1.5 Agricultural futures trading businesses are conducted through a futures exchange, where delivery or receipt of agricultural products must occur in warehouses designated by the futures exchange.
Group 2: Intra-Group Service Businesses, comprising:
2.1 Administrative management services, human resources services, and information technology services provided exclusively to affiliated companies within the same corporate group; and
2.2 Domestic debt guarantee services are provided exclusively to affiliated companies within the group.
These businesses are limited to intra-group operations for internal liquidity management and, therefore, are not considered to be in direct competition with Thai businesses.
Group 3: Other Businesses, comprising:
3.1 Leasing of partial business premises for the installation of electronic devices used in providing financial services, vending machines, or automated service machines for the convenience and benefit of employees; and
3.2 Petroleum drilling businesses providing services exclusively to concessionaires.
The nine businesses under the above three categories are proposed to be exempted through a draft Ministerial Regulation, except for the agricultural futures trading business under Group 1, which will instead be proposed under a draft Royal Decree.
What This Means in Practice
For foreign-majority companies that do not already hold BOI promotional privileges or operate under the US–Thailand Treaty of Amity — both of which provide their own exemption pathways — these eight categories have until now required a full FBL application. The exemption, once in force, eliminates that requirement for the listed activities.
The category with the broadest commercial relevance is administrative, HR, and IT management services. This has been a persistent compliance burden for foreign companies running regional shared-service centres or providing intra-group back-office functions in Thailand. The telecommunications and fund management exemptions benefit technology companies and financial-sector investors, respectively, while the remaining categories are more narrowly tailored to extractive, capital-markets, and equipment-leasing operators.
For businesses already regulated by sectoral agencies — telecommunications by the NBTC, and securities activities by the SEC — the exemption reflects a policy acknowledgement that requiring a separate DBD license on top of sector-specific oversight was a redundant regulatory burden. Removing the FBL layer does not eliminate those underlying sectoral obligations.
Important Caveats: The Regulation Is Not Yet in Force
Not yet enforceable. Cabinet Order No. 226 is a significant step, but this draft Ministerial Regulation must still pass through Council of State review, return to the Cabinet for a second and final approval, and be published in the Royal Gazette before it carries legal force. That process can take weeks or months, and no specific timeframe is guaranteed.
Equally important is the question of conditions. A precedent from the 2019 Ministerial Regulation — which exempted intra-group lending, office leasing, and advisory services — limited those exemptions to activities performed within the same corporate group. Foreign companies serving unrelated third parties were excluded. It remains unknown whether similar scope limitations will be imposed on some or all of the eight newly approved categories. Businesses should not assume unrestricted third-party coverage until the final Royal Gazette text is published and reviewed.
Who Benefits Most?
These exemptions matter primarily for two groups: foreign companies currently planning to enter the Thai market in any of the eight categories, and foreign-majority companies already operating in Thailand without BOI or Treaty of Amity status. Companies that currently hold an FBL covering one of these activities will benefit directly once the regulation takes effect — the exemption removes the need for renewal and ongoing FBL compliance for those specific business lines.
Companies already operating under the BOI promotion or the Treaty of Amity are, by design, already outside the FBL regime and are unaffected by this change.
How Candiduck Can Assist
If your business operates — or plans to operate — in any of the eight exempted categories, our team can assess whether the exemption applies to your specific structure and activities, advise on remaining sectoral obligations, and monitor the Royal Gazette publication to confirm when the regulation takes legal effect. We can also evaluate whether conditions similar to those in the 2019 regulation limit the scope of the exemption for your intended operations.
Official Source & Reference
https://www.dbd.go.th/news/22614052569