Foreign-owned businesses in several specialised service sectors can now operate without obtaining a Foreign Business Licence (FBL) for those activities. The change took effect on 28 August 2026, following the publication of new legislation under Thailand’s Foreign Business Act B.E. 2542 (1999) (FBA).

The reform began with Cabinet approval of proposed changes in May 2026. The final rules now provide a basis for businesses to assess whether their activities qualify, while leaving applicable sector-specific regulation in place.

Which services are covered?

The new ministerial regulation addresses eight categories of services:

1. Certain telecommunications services provided without an operator-owned telecommunications network;
2. Treasury centre services regulated under foreign exchange control laws;
3. Certain lending services secured by securities;
4. Specified derivatives-related agency, dealing, advisory and fund management services;
5. Administrative, human resources and information technology management services provided to qualifying affiliated entities;
6. Guarantees of domestic debts for qualifying affiliated entities;
7. Leasing part of premises for specified electronic financial service equipment or automated sales and service machines; and
8. Petroleum drilling services.

A separate royal decree addresses agricultural futures trading. Businesses should assess that activity under the decree rather than assume it falls within the eight service categories in the ministerial regulation.

What changes for foreign-owned companies?

Before the reform, an activity could fall within the FBA’s restricted service categories even if another regulator already supervised it. An eligible foreign-owned operator no longer needs an FBL for the activity covered by the new exemption.

That does not remove other approvals. A telecommunications, financial or petroleum business, for example, must still consider the licences and conditions imposed under the laws governing its sector. A company carrying on several activities must assess each one separately: an exemption for one service does not automatically cover its other services.

A closer look at group services

The exemption for administrative, human resources and IT management services may be particularly relevant to multinational groups using a Thai company as a shared service centre. It applies to services supplied to entities that satisfy the regulation’s affiliation criteria.

Those criteria extend beyond a straightforward parent–subsidiary relationship and include specified connections through shareholding or common management. A group should document both the relationship between the entities and the services actually provided. Services to an unrelated customer should not be treated as covered merely because the same company also serves affiliates.

What should businesses do now?

Foreign-owned companies that hold an FBL, are preparing an FBL application, or are considering new service activities should review their business model against the precise wording of the new rules. The key questions are whether the proposed activity fits an exempt category, whether any conditions attached to that category are met, and which other licences or registrations remain necessary.

For group service companies, the review should also cover the recipients of each service and the evidence supporting their affiliated status. Where a company offers a combination of exempt and non-exempt activities, its contracts and operational arrangements should distinguish between them.

The reform reduces overlapping FBA licensing for selected activities. Its practical benefit will depend on the company’s actual services, corporate relationships and continuing obligations under other applicable laws.

For more information, please get in touch with @ALLEGAL.