Licenses & Permits
Secure Your Legal Foundation in Thailand
Thailand’s licensing landscape presents one of the most complex regulatory environments in Southeast Asia for foreign investors. The Foreign Business Act B.E. 2542 restricts foreigners from operating in more than fifty business categories without specific authorisation, and virtually every commercial activity on Koh Samui requires at least one government-issued licence before you can open your doors. Operating without the correct permits is not merely a bureaucratic oversight: it is a criminal offence carrying fines of up to THB 1,000,000 and imprisonment of up to three years.
The challenge for foreign entrepreneurs is that licensing obligations are scattered across multiple government agencies, each with distinct application procedures, documentary requirements, and approval timelines. A restaurant, for example, requires a food service licence from the District Office, a liquor licence from the Excise Department, a music licence from the Department of Intellectual Property, and potentially a Foreign Business Licence from the Department of Business Development: four agencies, four separate processes, before a single customer sits down.
Our firm navigates this regulatory architecture daily. We advise on structuring your ownership to comply with the Foreign Business Act, securing the correct operational licences for your specific activity, obtaining work permits for you and your foreign staff, and maintaining the ongoing compliance obligations that keep your licences valid year after year. Whether you are opening a beachfront bar, building a villa development, or launching a tech startup, we map the complete licensing pathway before you commit capital.
Our Licensing Services
Our Licensing & Permit Services
Foreign Business Licence
The Foreign Business Act restricts over fifty activities for foreign-majority companies. We assess whether your business falls within List 2 or List 3 of the Act, prepare the full application dossier including three-year financial projections, and manage the submission to the Department of Business Development. The process typically takes three to six months and requires minimum paid-up capital of THB 3 million or 25% of estimated three-year expenses, whichever is higher.
BOI Promotion Advisory
Board of Investment promotion is the most powerful tool available to foreign investors, granting 100% foreign ownership, corporate income tax exemptions of up to thirteen years, import duty waivers, and exemption from the four-to-one Thai staff ratio. We assess your project’s eligibility against promoted activity categories, prepare the technology narrative and capital plan, and manage the application through the BOI’s e-Investment system. Minimum registered capital is THB 1 million for most categories.
Work Permit Procurement
Every foreigner performing work in Thailand, whether employed or self-employed, requires a valid work permit. We coordinate the entire process from the initial WP.3 pre-approval through to work permit issuance and annual renewal. Your company must maintain THB 2 million registered capital per foreign employee, employ four Thai staff per foreigner, and be registered for social security and VAT. We ensure all prerequisites are in place before application.
Restaurant & Food Service Licensing
Restaurants and bars are restricted activities under the Foreign Business Act, requiring Thai-majority ownership structures. Beyond corporate setup, establishments exceeding 200 square metres require a formal restaurant licence from the Koh Samui District Office, while smaller premises need only file a notification. We handle premises inspections, health and safety compliance, and coordinate with the local authority to ensure your establishment operates lawfully from day one.
Liquor & Alcohol Licensing
Any establishment selling alcoholic beverages requires a licence from the Excise Department. The most common is the Type 1 alcohol retail licence for on-premises consumption, requiring submission of the SOR.2/64 form with an annual fee of THB 8,250. We prepare the application, ensure your premises comply with proximity restrictions regarding temples, schools, and hospitals, and advise on the strict selling hours and advertising regulations that apply to all alcohol sales.
Hotel & Guesthouse Licensing
Properties offering four or more rooms accommodating twenty or more guests require a hotel licence under the Hotel Act. Smaller establishments need a guesthouse certification from the District Office. On Koh Samui, hotels with fewer than eighty rooms must undergo an Initial Environmental Examination, while larger properties require a full Environmental Impact Assessment. We manage the licence application, coordinate with the relevant environmental agencies, and ensure compliance with the Building Control Act.
Construction & Building Permits
All new construction and significant renovations on Koh Samui require a building permit (Aor.1) from the local municipal authority. Applications must include detailed architectural and engineering plans signed by licensed Thai professionals, proof of land ownership or lease, and compliance with Koh Samui’s specific zoning regulations, including height restrictions, setback requirements, and the prohibition on building above 150 metres above sea level. We coordinate with architects and engineers to assemble compliant applications.
Environmental Impact Assessment
Koh Samui is a designated area requiring environmental review for many development projects. Hotels below eighty rooms need an Initial Environmental Examination, while larger developments require a full EIA prepared by a licensed assessor and approved by the Office of Natural Resources and Environmental Policy and Planning. This process can add two to six months to your project timeline. We manage the EIA process from scoping through to ONEP approval, preventing delays that can stall entire developments.
Tourism & Activity Licences
Tour operators and travel agencies require a licence from the Tourism Authority of Thailand before commencing operations. Dive schools, adventure sports operators, and wellness businesses each have additional licensing requirements from their respective regulators. Note that working as a tourist guide is one of the occupations strictly prohibited to foreigners under Thai law. We advise on the correct corporate structure and licensing pathway for tourism-related ventures on the islands.
Import & Export Licensing
Businesses involved in cross-border trade require paperless import and export licences from the Department of Foreign Trade. Certain product categories, including food, pharmaceuticals, cosmetics, and agricultural products, require additional approvals from agencies such as the FDA, the Department of Agriculture, or the Department of Livestock Development. We identify every required approval for your specific product lines and manage the complete registration process.
Factory & Manufacturing Permits
Manufacturing operations require a factory licence under the Factory Act B.E. 2535. Type 3 factories, which encompass most medium and large operations, require a formal factory licence from the Department of Industrial Works and may require public hearings. The process typically takes four to six months. Manufacturing is notably one of the few activities not restricted under the Foreign Business Act, meaning foreigners can hold 100% ownership without an FBL, making it particularly attractive for foreign investors.
Licence Renewals & Compliance Audits
Most business licences in Thailand require annual renewal, and failure to renew on time can result in suspension of operations, fines, or even criminal liability. We maintain a compliance calendar for all your licences and permits, prepare renewal applications in advance of expiry deadlines, and conduct periodic compliance audits to ensure your company continues to meet all the conditions under which your licences were originally granted, including Thai staff ratios, capital requirements, and operational scope.
The Three Lists: What Foreigners Cannot Do
The Foreign Business Act classifies restricted activities into three lists with increasing levels of access. Understanding where your business falls determines your entire market entry strategy.
List 1
Reserved exclusively for Thai nationals. Includes newspaper publishing, rice farming, land trading, and forestry. No licence or exemption is available. Foreigners are completely excluded from these activities regardless of investment size.
List 2
Activities affecting national safety, arts, or natural resources. Requires Cabinet-level approval, minimum 40% Thai shareholding, and at least two-fifths Thai directors. Includes weapons manufacturing, domestic transport, and mining.
List 3
Activities where Thais are deemed not yet ready to compete. Includes most services: retail, wholesale, restaurants, hotels, consulting, and construction. FBL application reviewed by Foreign Business Committee within 60 days.
Exemptions
BOI promotion overrides FBA restrictions for promoted activities. US Treaty of Amity grants American investors national treatment. Manufacturing and pure export activities are generally unrestricted. Representative offices exempted since 2017.
Consequences of Non-Compliance
Operating without the correct licences carries severe penalties. Thai authorities are actively investigating unlicensed foreign businesses, particularly on Koh Samui.
Operating Without an FBL
Criminal offence under the Foreign Business Act: imprisonment up to three years and fines of THB 100,000 to 1,000,000, plus additional daily fines for continued non-compliance. Courts may order cessation of all business activities.
Nominee Shareholder Arrangements
Using Thai nationals as nominee shareholders to circumvent the FBA is a criminal offence for both the foreigner and the Thai nominees. Penalties include imprisonment, forced sale of business assets, and company dissolution.
Working Without a Permit
Foreigners caught working without a valid permit face fines of THB 5,000 to 100,000 and imprisonment up to five years. Employers hiring unlicensed foreigners face fines of THB 10,000 to 100,000 per illegal employee, with repeat offences doubling penalties and triggering a three-year hiring ban.
Unlicensed Restaurant or Hotel
Operating a food establishment or hotel without the required licences violates the Public Health Act, Hotel Act, and Building Control Act. Penalties include fines, forced closure, and imprisonment. Unlicensed hotels face additional penalties under recent enforcement targeting illegal accommodation on the islands.
Building Without Permits
Construction without a valid building permit triggers demolition orders, fines, inability to obtain utility connections, and criminal liability under the Building Control Act. On Koh Samui, building without permits is alarmingly common and has led to numerous forced demolitions and legal proceedings against foreign developers.
Prohibited Occupation Violations
Foreigners performing work reserved exclusively for Thai nationals, such as tourist guiding, brokerage, Thai massage, hairdressing, or street vending, face immediate work permit revocation, fines, deportation, and potential blacklisting from re-entry to Thailand.
Selling Alcohol Without a Licence
Selling alcoholic beverages without a valid Excise Department licence is a criminal offence under the Liquor Act. Penalties include fines, licence suspension, and imprisonment. Selling outside permitted hours (11:00-14:00 and 17:00-24:00) carries additional penalties.
Expired or Lapsed Licences
Allowing licences to lapse is treated the same as never having held them. Work permit expiry renders all work performed illegal from the date of lapse. Business licence expiry can trigger forced cessation and penalties calculated from the date the licence expired, not the date of discovery.
Our Licensing Process
From initial assessment through to licence issuance and ongoing compliance, we manage the complete regulatory pathway for your business.
Regulatory Mapping
We analyse your intended business activities against the Foreign Business Act, identify every licence and permit required, and map the complete approval sequence with realistic timelines and costs.
Structure & Strategy
We advise on the optimal corporate structure, whether Thai-majority, BOI-promoted, or Treaty of Amity route, to minimise restrictions while ensuring full legal compliance and protecting your investment.
Application & Filing
We prepare all documentation, financial projections, and supporting materials, then file applications with the relevant agencies: DBD, Department of Employment, District Office, Excise Department, and others as required.
Follow-up & Approval
We track each application through the review process, respond to supplementary requests from authorities, attend hearings or inspections where required, and push for timely issuance of all approvals.
Compliance & Renewal
We maintain your compliance calendar, prepare annual renewal applications, conduct periodic audits of staff ratios and capital requirements, and ensure your licences remain valid throughout the life of your business.
Licences & Permits in Thailand
The fifteen questions foreign clients ask most frequently about licensing requirements in Thailand, ranked by how often they arise in our practice.
Can a foreigner own 100% of a business in Thailand?
Generally no for services (limited to 49%). However, 100% ownership is possible via BOI promotion, the US-Thai Treaty of Amity, or a Foreign Business Licence (FBL). Manufacturing and export-only businesses are typically unrestricted.
Can a foreigner own and operate a hotel on Samui?
Restricted under the FBA. Options include a Thai-majority company, BOI promotion for large investments, or an FBL. Properties with 4+ rooms also require a Hotel Licence and environmental assessments (IEE/EIA).
Can I operate a business on a tourist visa?
Absolutely not. Working (including managing a business) on a tourist visa or visa exemption is illegal. Penalties include fines up to THB 100,000, imprisonment, and deportation.
Do I need a building permit on Koh Samui?
Yes (Aor.1 permit) for new builds and major renos. Requires architectural plans and compliance with Samui-specific zoning (e.g., height limits, setbacks, and no building above 150m sea level). Building without one risks demolition.
Do I need a work permit to run my own company?
Yes. Thai law defines 'work' broadly; even signing documents as a director requires a permit. Standard requirements: THB 2M registered capital and 4 Thai employees (reduced to THB 1M and 2 Thai staff if married to a Thai national).
Do I need an Environmental Impact Assessment (EIA)?
Required for hotels with 80+ rooms. On Koh Samui (environmentally sensitive), smaller hotels (<80 rooms) still need an Initial Environmental Examination (IEE). Construction cannot start until approval is granted.
FBL vs. Foreign Business Certificate (FBC)?
An FBL is a discretionary licence (takes 3–6 months). An FBC is an entitlement issued to those already 'promoted' (e.g., via BOI or US Treaty). The FBC is generally faster and carries the benefits of the underlying treaty/promotion.
How long does it take to get a work permit?
Typically 6–10 weeks for a first-time application. Process: WP.3 pre-approval -> Non-Immigrant B visa (abroad) -> Entry -> Final Work Permit. BOI companies use the 'One Stop Service Centre' for a much faster process.
How much capital is needed for a work permit?
THB 2 million fully paid-up capital per foreign employee (THB 1 million if married to a Thai). You also need a 4-to-1 ratio of Thai staff to foreigners. BOI-promoted companies are exempt from these specific ratios.
Is there a minimum salary for foreign workers?
Yes, based on nationality. As of 2025: Westerners (US/EU/AU/JP) min THB 50,000/mo; HK/SG/MY/TW min THB 45,000; others range from THB 25,000–35,000. Higher thresholds apply for executive roles in BOI companies.
What is BOI promotion and can I qualify?
The Board of Investment grants incentives like 100% foreign ownership and tax breaks. 2025 priorities include digital tech, green industry, and EV. Small hospitality usually doesn't qualify, but software and wellness ventures often do.
What is the Foreign Business Act (FBA)?
The primary law restricting foreign participation in ~50 activities (List 1, 2, and 3). A company is 'foreign' if 50% or more of shares are held by non-Thais. Operating restricted businesses without an FBL is a criminal offence.
What is the four-to-one Thai employee ratio?
For every 1 foreign work permit, the company must register 4 Thai staff with Social Security. The ratio is 2-to-1 if the foreigner is married to a Thai. BOI companies and LTR visa holders are exempt from this requirement.
What jobs are prohibited for foreigners?
20 occupations are strictly reserved for Thais, including tour guiding, Thai massage, haircutting/beauty, street vending, driving (except forklifts/aircraft), and secretarial work. Performing these leads to deportation and blacklisting.
What licences do I need for a restaurant/bar on Koh Samui?
Requires a Thai-majority company plus: a restaurant licence (from District Office), a liquor licence (Excise Dept), a music licence (Dept of Intellectual Property), and potentially an entertainment venue licence for live shows.