Foreign Business Certificates in Industrial Estates: What Has Changed

What’s new for IEAT investors?

For foreign investors in Thailand’s industrial estates, the FBC has offered a more straightforward route to operating certain businesses without going through the more extensive Foreign Business Licence (FBL) application process.

Under section 12 of the Foreign Business Act B.E. 2542 (1999), foreign companies permitted to operate under the IEAT framework may obtain an FBC instead of applying for an FBL. However, reports in October 2026 indicate that the DBD has clarified, and narrowed, the activities eligible for this route. Under the reported clarification, the IEAT-based FBC is limited to:

• Restricted manufacturing activities. Certain types of manufacturing covered by the Foreign Business Act, such as the production of carved wood products, plywood, veneer board, chipboard and hardboard.
• Export-related activities. Certain services connected with exports, including export warehousing and international transportation management.
• Contract manufacturing, including manufacturing on behalf of customers, and services such as repair and maintenance are reportedly no longer eligible for an FBC through the IEAT route. Foreign companies carrying out these activities may therefore need an FBL or, where eligible, an FBC based on Board of Investment (BOI) promotion.

Work that is routine inside an industrial estate – making goods for a customer, servicing their machines – may now need a licence of its own.

Why does this matter for businesses?

Contract manufacturing and after-sales services are part of everyday operations in many industrial estates. A company may manufacture products for another business, repair machinery for customers or provide technical support to companies in the same estate. Where these activities fall under List Three of the Foreign Business Act – businesses that foreigners may operate only with permission – the foreign company needs the appropriate authorisation to carry them out.

The narrower FBC route may create three challenges:

• A longer licensing process – an FBC is issued to businesses that already qualify under the relevant legal framework, while an FBL requires a separate approval process: an initial review by the DBD, followed by consideration by the Foreign Business Sub-Committee and the Foreign Business Committee. Obtaining an FBL may therefore take longer and delay the start of operations.
• Higher capital requirements – under section 14 of the Foreign Business Act, foreign businesses engaging in restricted activities are generally subject to a minimum capital of THB 3 million per business, subject to exceptions. This may increase the initial investment for companies that expected to use the IEAT-based FBC route.
• Business structuring and planning – companies may need to reconsider how they establish or expand their operations: applying for an FBL, exploring BOI promotion or adjusting how certain services are provided. Each option involves different requirements, costs and ongoing compliance obligations.

Which companies should pay attention?

The clarification is particularly relevant to foreign companies that:

• plan to establish operations in an industrial estate involving contract manufacturing, toll processing, repair or maintenance services;
• already operate in an industrial estate and intend to add new services or expand the activities covered by their existing FBC; or
• use a company in an industrial estate to provide services to other companies in the same corporate group.
• Based on current reports, FBCs issued before the clarification are not expected to be affected. It remains unclear, however, how the DBD will handle applications to add or amend activities under an existing certificate, so companies planning changes should review their position before proceeding.

Speak with our legal team

SBC advises foreign-owned companies on Foreign Business Act licensing, BOI promotion and ongoing compliance, including companies operating in industrial estates. To discuss how these changes affect your business, get in touch.