By Pataraporn Sirisopikun, Senior Manager – Legal and China Practice
On 28 August 2026, the Ministry of Commerce published the Ministerial Regulation Prescribing Service Businesses Not Requiring Permission for Foreign Business Operations (No. 5), B.E. 2569 (2026) in the Royal Gazette. The regulation removes the requirement for foreign businesses to obtain permission under List Three (21) of the Foreign Business Act B.E. 2542 (1999) (FBA) for certain specified service activities and expands existing exemptions for certain securities and derivatives businesses.
The changes reflect the Thai government’s broader objective of reducing regulatory duplication, improving Thailand’s competitiveness and facilitating foreign investment.
For existing foreign businesses, the reforms may create opportunities to simplify current structures and reconsider whether FBA permission remains necessary. For prospective investors, they may provide greater flexibility when evaluating market-entry and investment structures in Thailand. However, the exemptions are specific, and other sector-specific licenses and regulatory requirements continue to apply.
What has changed?
The new exemptions cover specified activities in the following areas:
- Telecommunications services (Type 1 license);
- Treasury center services;
- Administrative, human resources and IT management services between qualifying related juristic persons;
- Domestic debt guarantees between qualifying related juristic persons;
- Space-leasing arrangements for electronic equipment used for financial services and vending machines for employees; and
- Petroleum drilling services provided directly to qualifying petroleum-sector counterparties.
The regulation also expands exemptions relating to certain securities and derivatives activities, including specified lending for the purchase of securities, securities transactions under repurchase arrangements, and activities undertaken by certain derivatives dealers, advisers and fund managers.
A separate Ministerial Regulation issued on the same date also exempts certain specified derivatives brokerage and agency activities from the FBA permission requirement.
Key points for foreign businesses
Telecommunications services
The Ministerial Regulation exempts specified telecommunications businesses operating under a Type 1 telecommunications license, where the operator does not have its own telecommunications network and the business falls within the type of service considered appropriate for liberalized provision under the applicable telecommunications framework.
The exemption should not be interpreted as a general exemption for foreign-owned telecommunications businesses. In particular, telecommunications operations involving network ownership, infrastructure, or activities outside the prescribed Type 1 scope may continue to be subject to the FBA and other applicable requirements.
Accordingly, foreign investors should assess both:
- the classification of the telecommunications licence; and
- the actual nature of the telecommunications services and infrastructure operated by the business.
The FBA exemption also does not remove the need to comply with the Telecommunications Business Act B.E. 2544 (2001) and applicable regulatory requirements administered by the National Broadcasting and Telecommunications Commission (NBTC).
Intra-group administrative, HR and IT services
The new exemption may be particularly relevant to multinational groups operating regional headquarters and shared-service functions in Thailand. However, the relevant entities must satisfy the prescribed-related-juristic-person criteria. Being part of the same multinational group does not automatically establish eligibility.
Businesses should therefore verify that the relevant entities satisfy the prescribed criteria before relying on the exemption. They should also consider the substance of the services provided. For technology groups, for example, qualifying IT management services may need to be distinguished from broader commercial activities such as systems integration, cloud services, software-related services, or managed technology services. Where the application for the exemption is unclear, further guidance or clarification from the Foreign Business Administration Division under the Department of Business Development (DBD) may be needed.
Treasury centers, guarantees and petroleum services
The exemptions for treasury center services and certain intra-group domestic debt guarantees may reduce duplication where activities are already subject to financial-sector regulation.
Similarly, the petroleum drilling exemption applies only where the prescribed contractual conditions are met, including direct contracting with specified petroleum-sector counterparties.
These businesses remain subject to their respective regulatory frameworks, including Bank of Thailand requirements for treasury activities and petroleum legislation administered by the relevant authorities.
Securities and derivatives
The expanded securities and derivatives exemptions may be particularly relevant to foreign financial institutions and groups operating in Thailand.
However, the FBA exemption does not replace requirements under the securities and derivatives legislation. Businesses should continue to assess applicable licensing and regulatory obligations administered by the Securities and Exchange Commission (SEC).
FBA exemption does not mean regulatory exemption
The most important practical point is that the reforms remove an FBA permission requirement only where the relevant exemption applies. They do not remove other licenses, registrations, approvals or reporting obligations. For example:
- telecommunications businesses remain subject to NBTC requirements;
- treasury center activities remain subject to applicable Bank of Thailand and foreign-exchange rules;
- securities and derivatives businesses remain subject to SEC requirements; and
- petroleum businesses remain subject to the applicable petroleum regulatory framework.
Similarly, an exemption for intra-group HR management should not automatically be assumed to cover recruitment, employment placement, labor supply or other regulated employment activities.
What should businesses do now?
Existing and prospective foreign businesses should consider:
- Review actual activities: Assess what the business actually does in Thailand rather than relying solely on registered business objectives or contractual descriptions.
- Reassess existing FBA permissions (in case of existing business): Determine whether activities currently covered by an FBA permission may now fall within an exemption and confirm that all relevant activities are covered before discontinuing any existing permission.
- Check related-party requirements: For intra-group exemptions, verify that the relevant entities satisfy the prescribed relationship criteria.
- Review other regulatory requirements: Confirm that applicable sector-specific licenses, approvals and other regulatory requirements remain in place.
The new Ministerial Regulations represent a positive step toward a more streamlined foreign business framework in Thailand. They may reduce administrative requirements for qualifying foreign businesses and provide greater flexibility in structuring regional and intra-group operations. However, the exemptions are activity-specific and subject to prescribed conditions. Businesses should therefore carefully assess the scope of the relevant activity, the relationship between the parties and any applicable sector-specific regulatory requirements before relying on an exemption.
How RSM Thailand can assist
RSM Thailand can assist foreign investors and multinational groups with:
- assessing whether activities qualify for an FBA exemption;
- reviewing existing FBA permissions;
- evaluating intra-group arrangements;
- advising on market-entry and corporate structuring; and
- identifying related sectors- specific regulatory requirements.
For further information on how the 2026 FBA reforms may affect your business in Thailand, please contact RSM’s Law Firm in Thailand.
Should you require any advice with respect to this article or any of our Audit, Accounting, Payroll, Taxation, Legal or Recruitment and Outplacement Service, please do not hesitate to contact us on Askus@rsmthailand.com