Retail business (Selling products to end users)

• Any foreign company that would like to do retail business in Thailand is required to obtain Foreign Business License under section17.
• Retail business is in the Annexed list of Foreign Business Act, B.E.2542 (1999), list 3 (14).
• The minimum capital shall not be less than 3 million Baht (paid-up).

In addition, foreign company is allowed to do retail business without obtaining Foreign Business License if having minimum capital of 100 million baht (paid-up). With this amount of money, 5 retail stores are allowed. In case, the company would like to have the 6th store or more, the company is required to increase the capital every 20 million baht/store.

For more information regarding Foreign Business Act, B.E.2542 (1999) and the procedure to obtain Foreign Business License under section17, please see the attachments. If you have further information and would like to inquire directly to Foreign Business Administration Division, you are able to make a call at Tel. +66 2 547 4425-6 or send an email to foreign@dbd.go.th

Referred to e-mail, regarding apply for BOI promotion under activity of International Trading Center (ITC). Since we revised new investment promotion policy start from January 1st , 2015, activity of International Procurement Office (IPO) has been changed to International Trading Center (ITC). According to your existing promoted project is International Procurement Office (IPO) which receive the same incentive as ITC, so you can enjoy privilege under activity of International Procurement Office (IPO). However, if you would like to change type of promoted project from IPO to ITC, you have to fill revised form, and give us the reason of changing.

If customers are the dealer (Import for wholesale) this business could possibly be categorized under 7.6 Inter National Trading Centers (ITC) (on the list of activities eligible for investment promotion but if customer are the end user BOI does not promote a business.

International trading related services include:

1. Procurement of goods
2. Warehousing and inventory services prior to delivery
3. Packaging services
4. Transportation of goods
5. Insurance on goods
6. Advisory, technical and training services on goods
7. Any other services stipulated by the Director General of the Revenue Department.

This category you shall receive the following incentives:

• Exemption of import duties on machinery.
• Exemption of import duty on raw or essential materials for use in production for export product for 1 year which can be extended as deemed it appropriate by the Board.
• Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities.
• Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities.
• Permit to own land.
• Permit to take out or remit money abroad in foreign currency.

Criteria for Project Approval

1. The minimum of investment project is 1 million baht (excluding cost of land and working capital) for a new project.
2. Modern production processes must be used.
3. New machinery must be used.
4. The value-added of the project must not be less than 20% of revenue.
5. The debt to equity ratio of the project must not exceed 3 to 1.

For more information, please find fromhttp://www.boi.go.thandhttp://www.boi.go.th/index.php?page=criteria_for_project_approval

If your company decides to apply for the BOI promotion certificate, the foreign employee who will be working in Thailand can apply for an extension of his/her Non-B visa and a work permit through BOI in the Foreign Expert Services Division. I have attached the work permit form:-Application for WP,which is used to apply for a work permit through BOI. In order to apply for an extension of visa and a work permit for a foreign employee, the company needs to make requests for position approval and bringing in foreign experts. These requests can be submitted online through the e-Expert system but the company must submit the agreement to use the system at the Foreign Expert Services Division in Bangkok first.

For Non-BOI company

In case your company decides not to apply for the BOI promotion certificate, then the foreign employee will need to fill out the Form WP.1, please read a guide of:-WP.1form and can submit it directly at the Department of Employment in the province where your company located in, along with other required documents as follows:

1. Work Permit 1 (WP.1) form
2. Three (3x4 cm.) photos taken within the last 6 months
3. Employment certificate (last form in the pdf file)
4. List of aliens having received work permits
5. Organization chart detailing names, positions and numbers of Thai and alien workers
6. Original and copy of the passport and alien resident certificate
7. Copy of company’s affidavit (Certificate) and copy of list of shareholders (issued within the last 6 months)
8. Copy of VAT certificate (Por Por 01)
9. For legal entities having paid-up capital below 30 million baht, financial statements showing a total assets value of at least 30 million baht
10. Copy of transcript and/or employment reference letter issued by the previous employer
11. Map of office’s location
12. Medical certificate confirming that the applicant has no prohibited diseases as prescribed by Ministerial Regulations (issued within the last 6 months)

For the information about the:-Non-B visa application, please see the:-visa application attachment.

Information of The Customs Department

3. ELIGIBILITY FOR DUTY DRAWBACK

1) The drawback on such imports is not prohibited by the Ministerial Regulations.

2) The quantity of the imports used in producing, mixing, assembling, or packing exports is in accordance with the rules approved or specified by Customs.

3) The goods are exported through a port or place of exit designated for a drawback scheme.

4) The goods are exported within one (1) year from the date of importation of the goods used in producing, mixing, assembling or packing exported goods. In case where there is a force majeure event that causes the delay of such exportation, Customs may extend the aforementioned period by six (6) months.

5) A claim for drawback must be made within six (6) months from the date of exportation of the goods. However, Customs may extend this time limit on a case by case basis.

1) Raw materials which are obviously seen in the exports e.g. fabrics, buttons, zippers and thread in garments, plastic sheeting in plastic products, etc.

2) Raw materials used directly in the manufacturing process and contained in the exports but not obviously seen e.g. preservatives in canned food, stiffening agents in garments, solvents for glue in cellophane and anti-rust agents in electronic circuits, etc.

3) Raw materials required in the manufacturing process e.g. sizing materials and bleaching agents used in textile products, sand paper, scouring powder, varnish, velvet, scouring agents, chalk, carbon paper and pattern.

1) Machinery, tools, moulds and various appliances e.g. grinding ball for ores, tools and appliances made from tungsten carbide used in the manufacturing of watches, etc.

2) Fuels for manufacturing e.g. fuel oil, firewood, coal, etc.

1) Request for approval

2) Importation of raw materials

3) Submission of production formula

4) Submission of "right transferred table”

5) Exportation of Goods

6) Claiming for duty drawback

7) Duty payment on raw materials not exported

1) Form for approval of drawback (Form Kor Sor Kor 29)

2) Form for the approval of production formula (Form Kor Sor Kor 96)

3) Form for transferring the right of duty drawback (Form Kor Sor Kor 96/6)

4) Form for claiming duty drawback under Section 19 bis and bank guarantee (Form Kor Sor Kor 111)

5) Form for the summary of total amount of outstanding import duties and taxes (Form Kor Sor Kor 112)

6) Form for requesting duty concession (Form Kor Sor Kor 131)

7) Sample of report on duty refund on exportation

8) Sample of report on duty drawback classified by export declaration

9) Sample of report on raw material imported and used

10) Sample of report on duty drawback classified by import declaration

11) Sample of report on raw material drawback

Validity of the Approved Production FormulaThe approved production formula is valid for five (5) years from the date of approval. Upon the request by the importer, the validity of the approved production formula can be extended for another five (5) years at a time. The request for extension the validity of the production formula must be made before the expiry date of the production formula. Failure to do so is considered as an offence and the validity of the production formula will be extended after the case is settled.Raw Material AuditingThe auditing of raw material is conducted from the date when the Formula Number is issued. In case where the approved production formula is revised, the audit shall be conducted on the date indicated in the revised production formula, provided that such revision does not result in the approval of a new production formula.Documents1. Submission of Production Formula and Revision of the Approved Production Formula

1) Production Formula Declaration Form (Kor Sor Kor 96) with lists of products to be manufactured, lists of raw materials, code, unit and quantity of raw materials to be consumed including waste (if any) together with one (1) duplicate. The Unit of the raw materials shall be aligned with UN standards.

2) A copy of approved production formula(in case of revision of the approved production formula only)

3) Manufacturing Process(the submission of marker indicating the use of raw materials is also required for some products e.g. garments, shoes, etc.)

4) Samples of imported raw materials and finished products

5) Electronic media e.g. CD-ROM containing details of data in the format stipulated by Customs

6) Other related documents e.g. invoice of raw materials

2. Use of Other Person’s Approved Production Formula

1) A request stating the purpose of using other person’s approved production formula together with the written consent from the owner of the production formula

2) A copy of the approved production formula

3) Electronic media e.g. CD-ROM containing details of data in the format stipulated by Customs

3. Transferring or Selling of the Imported Goods to Other Person

1) Production Formula Declaration Form (Kor Sor Kor 96) with lists of products to be manufactured, lists of raw materials, code, unit and quantity of raw materials to be consumed including waste (if any) together with one (1) duplicate. The Unit of the raw materials shall be aligned with UN standards.

2) A letter certifying the production information of the manufacturer. The importer is waived from submission of production formula in the case where the exported product is manufactured using the production formula for drawback under Section 19 bis

3) Manufacturing Process(the submission of marker indicating the use of raw materials is also required for some products e.g. garments, shoes, etc.)

4) Samples of imported raw materials and finished products

5) Electronic media e.g. CD-ROM containing details of data with the format stipulated by Customs

6) Other related documents e.g. invoice of raw materials

4. Extension of the Validity of the Approved Production Formula

1) A request stating the purpose of the extension

2) A copy of the approved production formula to be extended

3) Electronic media e.g. CD-ROM containing details of data in the format stipulated by Customs

Submission of Right Transferred TableRight Transferred Table is the table containing information of the importer who is granted by the exporter to use his/her exported information for the purpose of auditing imported raw material in order to claim duty drawback under Section 19 bis. The table is submitted to Customs by the exporter.

1) Right Transferred Declaration Form for drawback under Section 19 bis (Kor Sor Kor 96/6) together with one (1) duplicate

 

2) Electronic media e.g. CD-ROM containing details of data in the format stipulated by Customs

Exportation of GoodsThe products must be exported within one (1) year from the date of importation of raw materials. After the exportation of goods, the exporter is required to submit the Export Declaration electronically to Customs in accordance with standards stipulated by Customs. DocumentsSubmission of Claim for Drawback or Withdrawal of GuaranteesThe importer who is granted an approval for duty drawback under Section 19 bis and requires to claim for duty drawback must submit a drawback claim to the Customs within six (6) months from the date of exportation. The duty drawback for imported raw materials is based on the first-in – first-out audit system. Revolving Guarantee Duty DrawbackDuty Payment on Unused Raw Material for ExportIn the case the importer place a bank guarantee in lieu of import duty payment or depositing a revolving guarantee, and imported raw materials have not undergone production, mixing, assembling or packing for exports, or have not been entirely used within one (1) year from the date of importation, the importer is required to submit a summary report indicating the total amount of outstanding import duties and taxes (Kor Sor Kor 112) of the unused raw materials and pay such amount of duties and taxes, plus surcharge of one (1) percent per month by the thirteenth (13th) month or within eighteen (18) months from the date of importation respectively. Failure to do so, legal action will be taken.

Definition of "Online Storage Service"

Online storage service is one of Internet services. This service provides data saving area in the Internet to user, user can upload and access his/her personal data with any devices, like PCs, smartphones, tablets.In fact, there are many online storage services in the world, many IT company join this market, such as Google ,Apple, Microsoft, and so on.

Q :

1. Online data storage service:Online Storage is a browser-based application that allows user to store and access their data files (such as document, music, photos, etc.) safely and securely — online. e.g. "Drop Box" *We will not allow our customer (user) to
   • share their files to the public. (To share with limited friends is partly allowed)
   • download/use/save other user’s data (User’s data availability will be limited to their own files)
   • Online Music/Contents StoreOnline music/contents store is an online business which sells movies, music and so on through the Internet. e.g. "iTunes"]

 

A : The officer from Foreign Business Administration explained that Online data storage service and Online Music/Contents Store business complied with Foreign Business Act section 17. Thus, the company can operate such services once the Foreign Business License (FBL) has approved.Please kindly access the attached files for your reference.

Since the purchasing is solely for the purpose of export back to Japan, the said export business is not under the supervision of FBA (Foreign Business Act), and it will not be affected by the FBA.

The business can be operated by a foreign company which has no Thai shareholding, and it will not fall under FBA, and it will not be affected by it.

The foreign investor is required to obtain "Hotel License”. To gain this license, Thai has to own the majority of shares (51% of foreign shareholding ratio).

1. It has to be a new investment. Please note that an existing project is not eligible to be promoted by BOI.