Transcript of the above video:

As the title of this video suggests, we are discussing the Foreign Business Act. For those unaware, in Thailand, many businesses especially foreign owned businesses or businesses which involve foreign participation may be restricted under the Foreign Business Act and the restrictions can be pretty substantial. I was discussing the other day with somebody in correspondence they were asking me about the FBA and they said: "Well what is the basic penalty for violation of the FBA? Of the Foreign Business Act?

My response, well there are multiple ways it can be violated so this is not an exhaustive video with respect to all the penalties because there are various aspects of the FBA which if you violate you can also face penalties. Just operating a Company which does not have 51% Thai ownership as a foreign national in one of the list of business activities that are considered prohibited in Thailand under the Act, or restricted I should say, under the Act, Section 37 of the Foreign Business Act stipulates: Imprisonment for a term not exceeding 3 years or fine of 100,000 to 1 million Baht or both and the Court's shall order the cessation of the business operation or the cessation of the undertaking or order the cessation of shareholding or partnership as the case may be. So it is not an insignificant penalty which could be accrued in the event that someone or multiple people whatever, are operating in violation of the Foreign Business Act here in the Kingdom of Thailand. The thing to take away from this video is you really want to be in compliance with this. 

Now American citizens they have the benefit of the US-Thai Treaty of Amity which allows Americans to own their companies 100% in Thailand once certified notwithstanding the provisions of the Act and those companies are granted "National Treatment". 

Meanwhile, the Board of Investment here in Thailand for those of other nationalities, can provide benefits and then depending on the type of business you are doing, it may behoove you to set up as some sort of structure within a Company which is majority Thai owned. So again multiple ways to deal with this but foreign nationals here in Thailand you have got to remember, stay in compliance with the Foreign Business Act.