Kingdom Ripe for Australian Business Investment in Thailand

Thai Foreign Minister Kasit Piromya has urged Australian businesses to invest in its close Asian neighbour, particularly in emerging industries such as alternative energy. BSA Law, a law firm in Thailand, has been guiding western business wanting to make a business investment in Thailand for nearly 30 years and believes an understanding of Thai business law is critical to success. End Quote

(1888PressRelease) July 19, 2011 - Bangkok, Thailand - Australian businesses should consider moving production of everything from medical products to solar technologies offshore, according to Thai Foreign Minister Kasit Piromya.

Mr Piromya addressed a delegation of Australian business representatives at a meeting in May. He said the kingdom was ripe for Australian investment in biotechnology - with considerable expertise in the production of biofuels - as well as medical products and procedures.

He highlighted improved education and employment conditions in Thailand and said the nation required strong corporate, environmental and social responsibility from foreign firms making a business investment in Thailand.

BSA Law spokesman Apisakde Kongkangwanchoke said that under Thailand law, foreign businesses operating in the kingdom would be subject to business law in Thailand, including Thai labour law and tax law.

The Thai Foreign Business Act of 1999 is the most significant Thai law governing foreign business operations in the kingdom. This Thai business law places restrictions on certain activities including mining and agriculture, requiring Thai Cabinet approval and up to 40 per cent investment from within Thailand. Establishing a Thai held company - requiring a 50 per cent Thai investment - allows foreigners to operate outside the FBA.

Mr Kongkangwanchoke said in general manufacturing was not subject to the FBA Thai business law.

"With few exceptions a foreign business can engage in manufacturing in Thailand without having to be concerned about the FBA, however nearly all types of service activities are listed under the FBA and thus subject to its rules. In most cases a foreign business must obtain a foreign business License before engaging in a service activity."

Other Thailand business laws which effect foreign enterprises include banking, insurance, telecommunications and employment regulations, which require a Thailand work permit for foreign employees.

"Thailand is attractive for foreign business investment but as a Thai law consulting firm we have seen just how critical it is for entrepreneurs to be aware of their legal rights and responsibilities which cover company formation, tax, intellectual property and employment."

About BSA Law:

For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. BSA Law seeks to provide international standards of legal services while retaining the customs of the Thai business culture.

For more information please contact:

Jim Byrne
Business Advisor, BSA Law.
Email: jim ( @ ) bsalaw dot co dot th

http://www.bsalaw.co.th

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