Cabinet Approves in Principle Two Pieces of Draft Subordinate Legislation on the Restricted Lists Under the Foreign Business Act B.E. 2542 (1999)

Introduction

On 12 May 2026, the Cabinet resolved to approve in principle two pieces of draft subordinate legislation issued under the Foreign Business Act B.E. 2542 (1999) (the “FBA“) as proposed by the Ministry of Commerce (“MOC“), namely: (i) the draft Royal Decree Amending the Schedule of Business Categories Annexed to the Foreign Business Act B.E. 2542 (1999) (No. ..) B.E. …. (the “Draft Royal Decree“); and (ii) the draft Ministerial Regulation Prescribing Businesses Exempted from the Foreign Business Licence Requirement B.E. …. (the “Draft Ministerial Regulation“) (together, the “Draft Subordinate Legislation“).

Key Summary of the Draft Subordinate Legislation

The Draft Subordinate Legislation is intended to remove nine categories of business from the restricted lists annexed to the FBA, thereby permitting foreigners to engage in such businesses without first obtaining a foreign business licence or foreign business certificate.

Draft Royal Decree (removing one business category)

The Draft Royal Decree removes one business category from the restricted lists annexed to the FBA, namely the business of trading agricultural commodity futures in a futures exchange centre, where delivery or receipt of the agricultural commodities is to be made at warehouses designated by the futures exchange centre.

Draft Ministerial Regulation (removing eight business categories)

The Draft Ministerial Regulation prescribes eight business categories which foreigners may operate without obtaining a foreign business licence or foreign business certificate:

• • Telecommunications service business (limited to type one telecommunications business licences issued under the Telecommunications Business Act 2001 only);
  • Treasury centre business (which is governed under the law on exchange control);
  • Administrative management services covering administration, human resources, and information technology (limited to services provided to affiliated companies within the same group only);
  • Domestic guarantee business (limited to providing guarantees for debts in Thailand to affiliated companies only);
  • Partial space leasing business for the installation of electronic devices used in financial services and vending machines for the convenience of company employees;
  • Petroleum drilling business;
  • Secured lending business (in various forms, as governed under the law on securities and exchange and the law on derivatives); and
  • Derivatives-related service business (including acting as agent, dealer, adviser, or fund manager for derivatives, where the underlying goods or reference variables fall outside the scope of the Derivatives Act B.E. 2546 (2003)).

Notably, the software development business has been removed from the draft following concerns raised by relevant agencies (including the Digital Council of Thailand) regarding potential adverse impact on Thai digital operators, particularly in terms of competitiveness and capital constraints.

At this stage, the Draft Subordinate Legislation has been approved only in principle. The Draft Subordinate Legislation has been forwarded to the Office of the Council of State for legal review, taking into account comments from relevant agencies. The timeline for enactment into law has not yet been confirmed.

Impact of the In-Principle Approval

The Draft Subordinate Legislation is not expected to materially affect Thai business operators in the relevant sectors. MOC’s rationale for the proposed exemptions rests on the fact that the listed business categories are already governed by sector-specific laws and supervised by specialised regulators – such as the Securities and Exchange Commission, the Bank of Thailand, the Department of Mineral Fuels, the National Broadcasting and Telecommunications Commission – which ensure adequate oversight in their respective sectors. MOC further considers that Thai operators are already in a position to compete in these areas, and that several of the exempted activities are intra-group services that reduce operational costs and avoid duplicative regulatory burden.

Key Takeaways

The Cabinet’s in-principle approval signals continued policy interest in reducing duplicative approval steps for activities that are already regulated under specialised legal regimes, while maintaining the underlying sectoral supervision. Foreign investors operating in, or considering investments in, the affected sectors should monitor the progress of the Draft Subordinate Legislation, as this may affect existing licensing strategies, group structures, and intra-group service arrangements in Thailand.

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Contribution Note

This Legal Update is contributed by the Contact Partners listed on this page, with the assistance of Senior Associate Sappaya Surakitjakorn.