Although foreign investments are encouraged by the Thai government, foreign equity restrictions and Thai participation requirements exist for many businesses. Foreign investment is controlled by a range of legislation, cabinet policies, trade association regulations, laws and other controls. Criminal penalties potentially apply for violating some of these controls and laws. The Foreign Business Act, B.E. 2542 (FBA), is often the first obstacle a prospective foreign investor in Thailand encounters. And this makes it an excellent place to start any discussion on Thai law prohibitions on investment because the FBA illustrates and embodies so many of the difficulties that foreign investors face in Thailand. To read the entire article, click here.