TAFTA Certification for Business and Trade in Thailand

For Australian businesses looking to export to, invest in or operate within Thailand, the TAFTA regime opens up important benefits. The Thailand–Australia Free Trade Agreement (TAFTA) allows eligible Australian-owned entities to access preferential treatment in select sectors and supports smoother trade flows between the two countries. At BASE Law Firm, we specialise in guiding Australian and Thai companies through applying for, maintaining and utilising the TAFTA-related certificate system.

Our service include:

TAFTA eligibility and sector assessment
Certificate application and documentation
Ownership and compliance monitoring
TAFTA origin and export support
Legal risk and structuring advice
Ongoing regulatory and reporting guidance

Why the TAFTA Certificate Matters

A TAFTA certificate, under Thai law this is typically a Business Operations Certificate (or a Certificate of Origin for exports), can unlock:

The ability for majority-Australian ownership in certain Thai business activities that would otherwise fall under restrictive foreign business categories.
Access to tariff benefits on goods exported from Australia to Thailand (or vice versa) when they satisfy origin requirements under TAFTA.
Faster visa and work-permit processing, and greater clarity around investment conditions for Australians operating in Thailand.

Eligibility Conditions for the Certificate

Before applying for the TAFTA certificate, a business must ensure it meets certain criteria. Key conditions typically include:

The entity must be incorporated under Thai law as a limited company, ordinary partnership, or limited partnership.
At least 51 % (or more, depending on sector) of the share capital must be Australian nationals or companies; all shareholders must be Thai or Australian.
Directors must be either Thai or Australian nationals. In the case of partnerships, the managing partner may need to be Thai.
The company must satisfy a debt-to-equity ratio of no more than 3 : 1 to be eligible.
The business activity must fall within the sector categories recognised under TAFTA for preferential treatment (e.g., construction services, mining, consulting, hospitality).

What Benefits Are Available under TAFTA

Ownership Flexibility: In sectors covered by TAFTA, Australian investors may hold a controlling or majority stake, even up to 100 % in limited cases.
Tariff Advantages: For goods exported under the TAFTA Certificate of Origin, preferential customs duty rates apply provided origin rules are met.
Rights of Investors: TAFTA provides Australian-invested companies with clearer protections for capital transfers, dispute resolution and access to Thai markets under more favourable terms.
Improved Mobility: Business-related visas and work permits for Australians are typically processed under streamlined procedures when operating via a TAFTA-certified enterprise.

Limitations and Risks

While TAFTA opens doors, there are important constraints to be aware of:

Not all industries are covered. Some sectors remain restricted or require approval by other laws.
Ownership limits may vary by sector; 100 % Australian ownership is not always permissible (many industries allow up to 60 % Australian shareholding).
The debt-to-equity requirement means high leverage may cause ineligibility.
Compliance is ongoing: the entity must maintain its ownership structure, meet business objectives and operate in line with TAFTA terms; failure may result in loss of benefits.

How BASE Law Firm Assists

BASE Law Firm offers full-spectrum support for businesses leveraging the TAFTA regime:

Pre-Approval Feasibility Review
We analyse your investment, business model and target sector to confirm whether the TAFTA certificate path is suitable.
Preparation of Application
We prepare and submit the required documentation (shareholding structure, directors list, debt-equity ratio, business plan) to Thai authorities.
Ongoing Compliance Monitoring
Once certified, we assist in maintaining your eligibility: tracking ownership changes, ensuring sector alignment, fulfilling reporting obligations.
Export Certification / Origin Documentation
For exporters, we help secure the Certificate of Origin under TAFTA, advising on origin criteria, documentation and customs procedures.
Risk Mitigation & Strategy
We advise on what happens if your business moves sectors or ownership changes, and how to preserve benefits or transition if needed.

Summary

For Australian investors and exporters, the TAFTA Certificate represents a strategic advantage in Thailand, offering ownership flexibility, preferential access and stronger investor protections. However, navigating the eligibility criteria and ongoing compliance demands specialist legal support. BASE Law Firm is your partner in this journey: whether you are seeking to apply for TAFTA certification, exporting under TAFTA preferential tariffs, or managing compliance post-approval, we provide expert, tailored guidance suited to your busines.

Contact BASE Law Firm to schedule your consultation and explore how TAFTA can align with your Thailand strategy.