商学論叢　第49巻　第１号

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3 2) Announcement of the National Executive Council No.281 NEC 281 3) 2) World Bank, The East Asian Miracle: Economic Growth and Public Policy, New York, Oxford University Press, 1993 / ) pg

4 Foreign Business Act B.E )

5 4) Department of Commercial Registration, Announcement of the National Executive Council No.281 Foreign Business Act B.E. 2542

7 5) 6) NEC 281 5) 6 In case where an alien has been granted a promotion under the law on the promotion of investment to engage in a business specified in Annex C, such person shall notify the Director-General within thirty days from the date of receiving the promotion certificate. After the Director-General has been notified and has granted a certificate as evidence, such person may then engage in that business. Annex C 3 (1) 6)

8 7) 7) Charoen Kittikanya, Oiling wheels of foreign investment, Bangkok Post Dec.29, 1999

9 de facto

11 Annex 1 Annex 2 Annex 3

12 8) Group 1 Group 2 Group 3 8) 8 (1) Foreigners shall be prohibited from operating the businessnotpermitted to them with special reason as described in List One.

13 9) 9) 15 The foreigners may operate the business under List Two only if Thai nationals or juristic persons that are not foreigners under this Act hold the shares of not less than 40% of the capital of that foreign juristic persons. and that number of Thai directors shall not be less than two-fifth of the total number of directors.

14 10) 10) List Three (21) Other categories of service business except that prescribed in the ministerial regulations.

15 11) 12) 13) 14) 11) List Three (10) Construction, except for:(a) Construction rendering basic services to the public in public utilities or transport requiring special tools, machinery, technology or construction expertise having the foreigner s minimum capital of 500 million Baht or more. (b) Other categories of construction as prescribed by the ministerial regulations. 12) List Three (11) Broker or agent business, except: (a) Being broker or agent for underwriting securities or services connected with futures trading of commodities or financing instruments or securities. (b) Being broker or agent for trading or procuring goods or services necessary for production or rendering services necessary for production or rendering services amongst affiliated enterprises. (c) Being broker or agent for trading, purchasing or distributing or seeking both domestic and foreign markets for selling domestically manufactured or imported goods in the manner of international business operations having the foreigner s minimum capital of 100 million Baht or more. (d) Being broker or agent of other category as prescribed by the ministerial regulations. 13) List Three (14) Retailing all categories of goods having the total minimum capital less than 100 million Baht or having the minimum capital of each shop less than 20 million Baht. 14) (3) a.

17 15) 16) 17) Annex 1 Annex 2 Annex 3 18) 15) 8 (2) Foreigners shall be prohibited from operating any business concerning national safety and security, business affecting art and culture, tradition and folk handicraft or the business affecting natural resources or environment as prescribed in List Two unless permitted by the Minister with the approval of the Cabinet. 16) c. 17) 8 (3) Foreigners shall be prohibited from operating the businesses prescribed in List Three in which Thai nationals are not ready to compete unless permitted by the Director-General with the approval of the Committee. 18) 4 An alien shall not engage in any business specified in Annex A and Annex B attached to this Announcement of the National Executive Council, unless otherwise permitted by a Royal Decree.

18 19) 19) 14 The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than two million Baht.

19 20) 21) 20) 18 The Minister with the advice of the Committee is empowered to issue the ministerial regulations prescribing any of the following conditions for the foreign licensees to comply with; (1) The ratio of the capital and loans to be used in the permitted business. (2) Number of foreign directors who must have domicile in the Kingdom. (3) Number and period for keeping the minimum capital in the country. (4) Technology or assets. (5) Other necessary conditions. 21) 23

20 22) 23) 24) 25) 22) 8 (3) Foreigners shall be prohibited from operating the businesses prescribed in List Three which Thai nationals are not ready to compete unless permitted by the Director-General with the approval of the Committee. 23) 9 The Committee shall review the business categories under the Lists attached hereto at least once every one-year period from the date of this Act comes into force and shall submit its opinion to the Cabinet. 24) Annex C Chapter 3 Business in Services: Exceptforthose specified in Annex AandAnnex B. 25) List Three (21) Other categories of service business except that prescribed in the ministerial regulations.

22 Annex 3 26) 27) 28) 26) 12 In the case where the business of a foreigner that is promoted under the investment promotion law or permitted in writing to operate the industry or trade for export under the law governing the Industrial Estate Authority of Thailand or other laws and business that are classified in List Two or List Three attached thereto, the foreigner shall notify the Director-General in order to obtain a Certificate. 27) Investment Promotion Act B.E )

23 29) 29)

24 30) 31) 32) 33) 34) 30) ) ) ) )

25 35) 36) 35) 4 Foreigner means (1) Natural person not of Thai nationality. (2) Juristic person not registered in Thailand..3 Alien means natural or juristic person who is not of Thai nationality. 36) 3 Alien (1) A juristic person with at least one-half of its capital owned by aliens. (2) A juristic person, at least one-half of the number of shareholders, partners or members of which are aliens, notwithstanding the amount of capital invested by aliens.

26 37) 38) 39) 40) 37) ) ) 1108 (4) 40) 1182

29 41) Public Companies Act B.E ) 41) 9 An alien, being a permit holder or shareholder or partner of a juristic person under Clause 3, shall not become a partner or shareholder in any other partnership or company with more than one-third of the total shares of the company or with more than one-third of the total capital of the partnership, or buy out such business, unless a permission has been granted by the Director-General who may prescribe any condition whatsoever. 42) Public Companies Act B.E

31 Department of Commercial Registration. Foreign Business Act B.E (1999). Bureau of Business Registration Department of Commercial Registration. Announcement of the National Executive Council No Bureau of Business Registration Kamol Sandhikshetrin (Translation). The Civil and Commercial Code, Books 1-6. Nitibannagarn, 2000 Sersansie, Somjit and Nimmansomboon, Wichai (Translation). Public Limited Companies Act B.E Nititham Publishing House, 1996 Bangkok Business and Secretarial Office Ltd. Land Code. Bangkok Business and Secretarial Office, 2003 Kotler, Philip and Kartajaya, Hermawan. Repositioning Asia. John Wiley & Sons (Asia), 2000 Milner, Chris and Read, Robert. Trade Liberalization, Competition and the WTO. Edward Elgar, 2002 Pasuk Phongpaichit and Baker, Chris. Thailand, Economy and Politics. Oxford University Press, 1995 Thompson, Grahame. Economic Dynamism in the Asia-Pacific. Routledge, 1998 Wain, Barry. The Indochina Refugee Crisis. Foreign Affairs, Vol 58, Fall 1979 World Bank. The East Asian Miracle: Economic Growth and Public Policy. New York, Oxford University Press ASEAN

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商学論叢 第49巻 第１号

商学論叢　第49巻　第１号