Insights / Updates

Stay up to date with legal developments in Thailand.

What's New

Services Between Related Foreign Companies No Longer Require a Foreign Business License

A newly issued Ministerial Regulation, published in the Royal Gazette on 25 June 2019, has lifted the constraint on majority foreign-owned companies providing services to other members of their group without first obtaining a Foreign Business License. Until recently, this meant that a majority foreign-owned company could not lend funds domestically or sub-lease office space to a related company within its group – essentially it could not set up as a “back-office service provider” - without first obtaining a Foreign Business License. The newly issued Ministerial Regulation will allow majority-owned foreign companies to reconsider how services are provided amongst group members.

A New Law on Public-Private Partnerships

The Public-Private Partnership Act B.E. 2562 (2019) (“PPP Act”) came into force on 11 March 2019, revoking the Private Investment in State Undertakings Act B.E. 2556 (2013). The stated purpose for the promulgation of the PPP Act is to have a clear and certain state policy in arranging infrastructure and public services by aiming for public-private joint investment on the basis of public-private partnership, and to determine mechanisms for solving problems, obstacles or delays in undertaking joint investment projects. This Update provides a summary of the provisions of the PPP Act

New Personal Data Protection Act

On 28 February 2019, the National Legislative Assembly voted 161-0 with 5 abstentions to approve the draft Personal Data Protection Act (“PDPA”) in its third and final reading. The stated reason for the promulgation of the PDPA is because there have been many violations of personal data rights and such violations cause damage to the economy as a whole. Due to advancements in technology, it is necessary to enact a law to make the collection, compilation, use and disclosure of personal data easy, convenient and prompt. This Update sets out a summary of the provisions of the approved draft PDPA.