In 2019, the Thai government started to relax the license to produce CBD in Thailand, allowing cannabis to be used with limitations for health and medical purposes. The government of Thailand is the first neighboring nation in Southeast Asia to support and legalize cannabis use for medical purposes. 

The major goals are to lessen illegal cannabis growth and commercialization while allowing individuals to properly use technologies connected to the plant’s medical use. The Thai economy is expected to benefit from it as well. However, in Thailand’s rather traditional society, this notion sparked discussion.

Thailand Issues Licenses for Cannabis sativa Distribution, Import, and Export

On November 26, 2021, the Government Gazette published the rules on applying for a license to produce, import, export, dispose of, or possess narcotic substance category 5—particularly “cannabis.”

According to the ministerial order, the following people may apply for a license to produce CBD in Thailand:

When submitting as an individual, the candidate is required to:

• be a citizen of Thailand
• A minimum age of 20 is required.
• an occupant in Thailand
• Not be a person who is incompetent, barely competent, or of unsound mind
• avoid bankruptcy
• not possess a drug-related license or a license issued under a psychoactive substance or narcotics law that is currently suspended or revoked
• Be exempt from punishment by final judgment for violating any of the following laws: the drugs law, the psychotropic substance law, the law to prevent the abuse of volatile substances, or the law on measures to suppress offenders in a narcotics-related violation.

In the event that an applicant is a juristic person, they must:

• Have a representative or someone with the ability to act on behalf of the legal person who meets the requirements
• Thai nationals must occupy one of the following positions: director, shareholder, or at least two-thirds of the shareholder.
• possess a workplace in Thailand

If the applicant is a community business that is not a legal person, the representative who is allowed to carry out the activities must meet the requirements.

If the applicant is a state agency, the agency’s goals must be in line with its stated missions in this ministerial rule, which are related to the production, import, export, disposal, or possession of cannabis.

This suggests that marijuana production, import, export, disposal, and possession are still not permitted for foreigners in Thailand. For the first five years after the Act’s enforcement in February 2019, only Thai citizens or legal entities governed by Thai law would be permitted to engage in these activities, in accordance with the modified Narcotics Act issued in 2019.

Which Permits Are Necessary for Thailand To Produce CBD?

Whatever business you want to start, there are some basic legal criteria you must adhere to. Here are some typical requirements, though these may change based on your location and sector.

Business Formation

It’s crucial to incorporate your company or create an LLC (Limited Liability Company) with the state in order to protect your valuables from any potential obligations and debts that your company may incur.

Tax ID number

This is your employer identification number, which is also known as your federal tax identification number (EIN). This number is used by the Internal Revenue Service (IRS) to identify your company for any tax-related purposes.

General Business License

You can conduct business legally in your city or county if you have this license, which must be renewed annually.

DBA Filing

A DBA (Doing Business As) filing enables you to conduct business under a name other than the one listed in your articles of incorporation.

Permits

Various permits are required for various enterprises. If your company involves food processing, for instance, you’ll need one with the health department. Additionally, zoning, land use, and signage approvals may be required for businesses.

Cannabis store license requirements differ widely from state to state and between municipalities, much like general licensing regulations do. For instance, while some jurisdictions have open application periods and provide a large number of licenses, other states are more limited and can only issue one or two licenses to produce CBD in Thailand per year.

Conclusion

Although Thailand’s cannabis laws have come a long way, there are still new policies to be announced and details to be explained. It is advised to stay up with new developments and obtain legal counsel for expert guidance through the regulatory complexity for anyone considering entering Thailand’s cannabis industry landscape. Contact us to understand the license to produce CBD in Thailand case by case.