Translation:
Foreign Business Act Amendments
Note:
Amendments were passed by the Cabinet in early January 2007
and are pending approval from the Council of State and publication
in the Royal Thai Government Gazette.
Section
1: This Act shall be called the "Foreign Business
Act" (Number…) (Year..)
Section
2: This Act shall go into effect immediately from
the day after its
publication in the Government Gazette.
Section
3: The definition of "foreigner" in Section
4 of the Foreign Business Act of 1999 shall be repealed and
replaced with the following:
"Foreigner"
means
(1)
Natural person not of Thai nationality.
(2) Juristic person not registered in Thailand.
(3) Juristic person registered in Thailand having the following
characteristics:
(a)
Having half or more of the juristic person's capital shares
held by persons under (1) or (2) or a juristic person having
the persons under (1) or (2) investing with a value of half
or more of the total capital of the juristic person or a juristic
person having the persons under (1) or (2) having half or
more of the juristic person’s total voting rights under
law or under a regulation or an agreement
(b)
Limited partnership or registered ordinary partner-ship having
the person under (1) as the managing partner or manager.
(4)
Juristic person registered in Thailand having half or more
of its capital shares held by the person under (1), (2) or
(3) or a juristic person having the persons under (1), (2)
or (3) investing with the value of half or more of its total
capital.
For
the purpose of the definitions, the shares of a limited company
represented by share certificates that are issued to bearers
shall be deemed as the shares of aliens unless otherwise provided
by ministerial regulations.
Section
4: Section 35 of the Foreign Business Act of 1999
shall be repealed and replaced with the following:
"Section
35. Any foreigner, being granted the license to operate any
business under this Act, takes part in a business owned by
other foreigners not permitted to operate the business under
this Act or operated the business jointly owned by such other
foreigners by showing that he is the sole owner of the business
in order for such other foreigners to avoid or violate the
provisions of this Act, shall be subject to punishment with
an imprisonment of not exceeding three years or a fine from
500,000 Baht to 5,000,000 Baht or both and the Court shall
order the dissolution of such joint business or business operation.
Any violation of the Court's order is punishable with a fine
of 50,000 Baht to 250,000 Baht per day throughout the period
of violation."
Section
5: Section 36 of the Foreign Business Act of 1999
shall be repealed and replaced with the following:
"Section
36: Any Thai national or juristic person that is not a foreigner
under this Act, aiding or abetting or taking part in the business
operation of the foreigners whose business falls under the
Lists attached hereto and the aliens are not permitted to
operate the business or taking part in the business operation
of the foreigner by showing that he or it is the sole owner
of the business or holding shares on behalf of the foreigners
in any partnership or limited company or juristic person in
order for the foreigners to operate the business in avoidance
of or violation to the provisions of this Act, including the
foreigners allowing Thai nationals or juristic persons that
are not foreigners under this Act to do so, shall be punished
with an imprisonment of not exceeding three years or a fine
from 500,000 Baht to 5,000,000 Baht or both and the Court
shall order a stoppage of the aiding or abetting or order
a stoppage of the joint business operation or order a stoppage
of share holding or a cessation of the partnership as the
case may be. Violators of the Court's order shall be subject
to a punishment with a fine of 50,000 Baht to 250,000 Baht
per day throughout the period of violation."
Section
6: Section 37 of the Foreign Business Act of 1999
shall be repealed and replaced with the following:
"Section
37. Any foreigner who operates a business in violation of
Section 6, Section 7, and Section 8 shall be punishable with
an imprisonment of not exceeding three years or a fine from
500,000 Baht to 5,000,000 Baht or both and the Court shall
order a stoppage of the business operation or the dissolution
of the business or order a cessation of the shareholding or
partnership as the case may be. Violators of the Court's order
shall be subject to punishment with a fine of 50,000 Baht
to 250,000 Baht per day throughout the period of violation."
