If an applicant would like to establish a Free Zone, they must submit an application form to the Director of Customs, together with supporting documents at the Tax Incentives Department. If an application is for establishing a Free Zone located in a Special Economic Zone or in a prototype project – triangle cities with security, wealth, and sustainability – the applicant must submit an application form to the Customs Station in their area. Eligible applicants must have the following qualifications:
Qualifications
1.If the applicant is a limited company established under the Civil and Commercial Code and would like to establish a Free Zone, the applicant must have paid-up registered capital not less than 60 million baht or more than 10 million baht, or have an amount of paid-up registered capital as specified by the Director-General in order to establish a Free Zone in other areas, such as in a Special Economic Zone or in in a prototype project, i.e., triangle cities with security, wealth, and sustainability;
2. The applicant must own the site or have the right to manage the areas proposed for approval. In a case in which the area is mortgaged, the mortgagee must legally approve.
3. The applicant must be a legal person with secure financial status certified by a licensed auditor. The accumulated deficit must not be over 50% of paid-up capital. In case a legal person has recently been registered, they must submit a Feasibility Study for consideration.
Ineligible applicants
1. Their license is revoked;
2. The license was revoked in the past, unless the revocation period is more than three years prior to the application date.
If all documents are verified, the Customs officer will proceed with further steps, such as checking the applicant’s qualifications and the area for establishing a Free Zone, and propose it to the Director of Customs within 30 days. After the Director of Customs grants approval, the applicant will be informed.
After being granted approval from Customs, the applicant must make an agreement of bond and security as a guarantee for any damages, together with the license and annual fee. A bank guarantee deposit of 5 million THB must be placed, as well.
If the applicant would like to establish a Free Zone in other areas, such as in a Special Economic Zone or in a prototype project (triangle cities with security, wealth, and sustainability), a bank guarantee deposit of 2 million THB must be placed within 30 days after receiving notification.
If an applicant neglects or incompletely follows the regulations, it will be taken to mean that the applicant does not wish to get a license, and the application will be rejected from the system.
When an agreement of bond and security is made, and the license fee and annual fee are paid, the Director of Customs shall sign the agreement and grant approval within 15 days of conducting the agreement and paying the fees.
Since approval, all activities must be started within 90 days. Before opening a Free Zone, licensee need to provide infrastructures, buildings, tools and equipment, computer system, security system or other important system required by Director of Customs
Once approval is granted, all activities must be started within 90 days. Before opening a Free Zone, the licensee needs to provide infrastructure, buildings, tools and equipment, computer system, security system, and other important systems required by the Director of Customs.
Data updated on July 23, 2018
Source: Free Zone Establishment Department, Customs Department
Tel. +66 2667 6536
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