Starting a Cannabis Business in Thailand

Entering Thailand’s cannabis industry requires more than enthusiasm. It demands a clear grasp of legal requirements, corporate structuring, regulatory licensing, and ongoing compliance. At BASE Law Firm, we provide hands-on support to investors, entrepreneurs, and companies looking to launch cannabis cultivation, production, or retail operations in Thailand.

Our service include:

Cannabis business feasibility assessment
Thai company setup guidance
Licensing preparation and submission
Compliance and SOP framework
Regulatory monitoring and updates
Ongoing legal operational support

Regulatory Landscape & Key Activities

With cannabis regulation evolving rapidly in Thailand, various business streams are regulated under different rules depending on the nature of the activity:

Cultivation of cannabis plants or hemp;
Production of extracts, oils or derivatives;
Marketing, retailing or distribution of cannabis-based products;
Exporting or importing cannabis components (where permitted).
These activities are subject to multiple laws and oversight by authorities such as the Thai Food and Drug Administration (TFDA) and other governmental bodies.

Structuring Your Business

Corporate form and ownership

You must typically establish a Thai limited company as the operating entity for a cannabis-related venture.
Foreign participation is restricted; a Thai majority shareholding is required in many cases and foreigners may be limited to minority stakes.
The company should have a clear business model (growing, processing, retailing) and capital structure aligned with licensing requirements.

Location & operations

The premises must be suitable: properly zoned, compliant with safety regulations, and meeting any specific standards for cannabis operations (e.g., storage, odor control, hygiene).
If you intend import or export, you will need to meet horticultural controls (for cultivation/plant propagation) and export/import rules for cannabis extracts.

Licensing & Compliance Process

Pre-launch review
We assess your proposed business model, corporate structure, product roadmap and regulatory obligations to determine which licences you will need.
Licence application
Documentation typically includes the company’s Thai-registered company details, shareholder/director information, business plan, premises layout, product list, sourcing plan, and compliance controls.
Regulatory approval
The relevant authority reviews the submission, may conduct inspections, and decides whether to grant the licence for a specific period (e.g., three years) or impose condition-based approval.
Operational compliance
After the licence is granted, the business must maintain compliance: keep records of sourcing, traceability, product quality, and ongoing reporting to authorities. Failure to comply may lead to license revocation or criminal penalties.

Critical Considerations & Risks

Regulatory change: The cannabis regulatory regime in Thailand is in flux—future amendments may impact licences, permissible product types, ownership rules or export permissions.
Foreign-ownership constraints: Investors must carefully plan company ownership and control structures to align with Thai law, especially given the restrictions on foreigners in cannabis-related ventures.
Sourcing and product classification: Certain cannabis parts (for example extracts above a specific THC threshold) are more heavily regulated; sourcing from approved suppliers is essential.
Penalties for non-compliance: Operating without a valid licence, mis-labeling, or selling to excluded groups (minors, pregnant women) can trigger fines, license suspension, and criminal liability.

How BASE Law Firm Can Help

At BASE Law Firm, we offer full-service legal and regulatory support for cannabis ventures in Thailand:

Initial feasibility review: Evaluating your business concept, ownership structure, permissible activities and regulatory fit.
Corporate set-up & structuring: Establishing the Thai company, advising on equity structure, compliance planning and governance.
Licence application & navigation: Preparing all required filings, liaising with authorities, coordinating inspections and approvals.
Compliance framework: Designing standard operating procedures, record-keeping systems, product traceability and audit readiness.
Ongoing support: Monitoring regulatory changes, implementing amendments, advising on expansions or transfers, and defending your interests if regulatory issues arise.

Summary

Success in Thailand’s cannabis business sector demands more than capital as it also requires legal clarity, strategic planning and rigorous compliance. BASE Law Firm provides the expertise needed to structure your venture, secure the necessary licences and operate with confidence in a fast-shifting regulatory environment.

If you are considering launching a cannabis-related operation in Thailand and need legal advice on structure, licensing or compliance, contact BASE Law Firm today for tailored assistance.