Thai-Australia Free Trade Agreement

Like the Treaty of Amity, the Thailand-Australia Free Trade Agreement (TAFTA) also allows the Australian citizens and companies to set up a local company that can engage in certain restricted businesses in Thailand without the need to obtain for the foreign business license. Those businesses are (1) mining, (2) construction, (3) sales of food and beverages, and (4) certain services.

The Australian citizens and companies are permitted to hold shares up to 60% or 100% in a locally incorporated company that engages in these businesses, depending on the type of a business. In order to benefit from the FTA, the Australian owned local company must register the FTA with the relevant Thai authority. We handle the FTA registration application for our clients.

Japan-Thailand Economic Partnership Agreement

Similarly, the Japan-Thailand Economic Partnership Agreement (JTEPA) allows the Japanese citizens and companies to form a local company that can engage in certain restricted businesses in Thailand without the need to obtain the foreign business license. Those businesses are (1) retailing, (2) wholesaling, (3) advertising business, (4) hotel business, (5) selling food or beverage, (6) general management consultancy, (7) logistic consultancy except for transportation services, and (8) maintenance and repair services.

The Japanese citizens and companies are allowed to hold shares up to 100%, 75%, 60% or 50% in a locally incorporated company that engages in these businesses, depending on the type of a business. In order to benefit from the JTEPA, the Japanese owned local company must register the JTEPA with the relevant Thai authority. We handle the JTEPA registration application for our clients.