Q1 – I will set up a company to operate a tourism business and the director will be me and my Thai shareholder partner, is that ok or do you have any recommendation? Can your company help me to register a company and apply for a tourism license?

Panwa: Yes, we can assist you for company setting up and apply for the tourism license (TAT). However, since your company will do the tourism business, please note that the number of Thai directors must be more than other nationalities, which means that in case you also would like to be a director, the company must have 2 Thai directors: 1 foreign director (kindly note that the foreigner cannot sign the documents related to tourism or TAT). For this case, the two Thai directors must remain in the company as long as the company have the TAT license. Or another option is only one Thai is a director.

Q2 – I’m interested to operate a tourism business under the company. I heard from someone that if I will do this business, I need to register a company under the different business first and apply for the TAT license. And after received such license, I need to add the tourism business on my company’s objective to operate this business, right? Correct me if I’m wrong.

Panwa: If you would like to operate a tourism business, you can put this business directly on the company’s objective when register the company at the very first time. This is due to when you will apply for TAT license at the Department of tourism, the officer will first look at the business objective first, if the company is not registered for a tourism business, the officer will reject your application and you cannot apply for the license.

Q3 – I have registered a company and would like to apply for TAT License. Anyway, when my staff prepare the documents for apply such license, on the list it mentioned that the company must pay for the insurance. Do I actually need to pay for this?

Panwa: Yes, if you do the tourism business you need to pay for the insurance as it is one of the requirement for apply TAT License and the last step before obtaining a tourism license from TAT is to pay official fees and security deposit. The company will be required to deposit a security fee in cash, cashiers cheque or bank guarantee depends on the kind of tourism as follows:

• 3,000 THB if the tourism activities will only be organized in a specific area
• 15,000 THB for domestic tourism activities
• 30,000 THB in case of outbound tourism
• 60,000 THB in case of inbound tourism

Q4 – I am interested in operating a tourism business under my company which my brother will be the tour guide and he already have the tour guide license. If like this, does my company need to apply for TAT license or can we use the tour guide license of my brother to operate the tourism business directly?

Panwa: Please note that the TAT license and the tour guide license are different and cannot be used interchangeably due to the TAT license is for a person or company who operate as a tour operator without being a tour guide/leader, you can use such license to operate a tourism business only, then hire a tour guide who has a valid tour guide license to act on your behalf, whereas the tour guide license is issued to those who work as tour guides. which must pass an examination first to measure their knowledge, abilities, and have educational backgrounds in tourism and courses related to tour guides. Therefore, for your case, even the brother who will become a partner in the company already has a tour guide license, your company will also need to apply for a tourism business license, otherwise, you may commit a legal offense.

Q5 – My company operates a business related to selling a travel package to clients and travel agency including provides itinerary plan consultancy services. Does our company need to apply for a tourism license?

Panwa: If the company operates the business related to tourism whether provides travel programs, selling of itineraries plan, advertising, or providing travel consultancy services, including accommodation reservation, car rental services, the company need to apply for a TAT License even if the the company does not directly provide tour services, due to this business is considered as a type of tour operator which is part of the tourism business.

Q6 – I am researching for tourism business. As I know in order to operate a tourism business, the company must pay for a place of guarantee. So I would like to inquire from you why the company has to pay for a place of guarantee and can such payment be refunded?

Panwa: Normally the tourism business must pay for place of guarantee due to such payment will be used to cover claims arising from the travel company’s errors and negligence which may include cases of accidents, damages or risks. Moreover, such place of guarantee can be refunded in some cases such as travel company requires to cancel the license to operate other business or in case of closing the company. However, before get the refund for place of guarantee fee, your company cannot register for closing the company or liquidation and cannot close the company’s bank account linked with the Department of Tourism, otherwise, the Department of Tourism cannot be refunded for place of guarantee to your company.

Q7 – My company operates the inbound tourism business and already obtained the TAT license. The 2 Thai directors resigned and currently is left with only 1 foreign director. The company’s license will be expired in next 2 months. Hence, I would like to know if a foreign director can renew the license?

Panwa: According to the Tourism Business And Guide Act B.E. 2551 (2008), if the company has a foreign director, the company must have Thai majority directors than other nationalities and only the Thai director will have the authorization to sign and affix the company’s seal. Thus, for your case, the foreign director is unable to sign the documents for renewing the TAT License. Moreover, you need to add 2 Thai directors at Department of Business Development (DBD) first according to the regulation of the Department of Tourism before you can renew the license.

Q8 – My company is registered last month which the company is located in Maha Sarakham Province. If the company requires to apply for a tourism license, can we proceed in Bangkok?

Panwa: Since your company head office is located in Maha Sarakham Province thus, you cannot apply for TAT license in Bangkok which your company have to proceed to apply the TAT license at the Department of tourism, Northeast branch located in Nakhon Ratchasima province. Moreover, in order to apply the TAT license, on your business objective must specify that company will conduct a tourism business.

Q9 – The company would like to operate a tourism which the head office located in Bangkok and our company has a branch office at Mukdahan. If we would like to operate a tourism business in Mukdahan, do we need to apply for the tourism license at Bangkok or Mukdahan?

Panwa: For applying tourism license (TAT License) it is divided into 2 cases:

1. In case the head office does not have TAT license and would like to apply the license for branch office in Mukdahan only, must submit the application forms for apply TAT License at Department of tourism, northeast branch located in Nakhon Ratchasima province.

2. In case the head office already have TAT license and the company would like to request for adding branch for operate tourism business in Mukdahan province, the company have to submit application form at the same province with the head office location which is in Department of tourism in Bangkok.

Q10 – Our company has the TAT license under domestic tourism which we would like to change it to be outbound tourism. Is it possible? What are the procedures and how long does it take?

Panwa: For change type of tourism business by using the same license number, it is impossible. In case you would like to change the tourism type to be under outbound tourism, your company need to cancel the current TAT license under domestic tourism first and proceed to apply the new TAT License for outbound tourism which the steps and period time are as follow:

1. To cancel the current TAT license, the company need to submit the application forms to request for cancellation and the refund of the place of guarantee fee to the Department of Tourism. The official will accept the request and it takes 60 working days to return the place of guarantee fee.

2. To apply for a new TAT license for outbound tourism, must submit the application forms and the new requirement sets together with settle a place of guarantee fee follow the type of tourism. For TAT license for outbound tourism have to pay for a place of guarantee fee Baht 60,000. Moreover, the license can be received on the same day that the company submit the documents to the Department of tourism.

Remark: For applying the new type of license, there is no need to wait for the process of cancellation and refunding the place of guarantee under the current license to be completed. You can apply for a new license on the same day if the officer has already received the license cancellation documents.

Q11 – The company is on the process of preparing the documents for applying TAT license which the company has a foreign shareholder and the structure in shareholders’ list are as:

1. The Thai juristic person holds 31% of share

2. Individual Thai shareholder holds 20% of share

3. Foreign shareholder holds 49%

Can the company apply for TAT license? If so, what documents are required by shareholders? or if cannot, can you explain the reason to me?

Panwa: Refer to your shareholders’ structure as on the question, kindly note that your company cannot apply for TAT license due to as per the Department of tourism(s) policy, the shareholders’ list of the company must show the names of all individual shareholders (individual Thai shareholder hold 51% of shares and foreigner hold 49% of shares). Moreover, your company has the individual Thai shareholder holds the share only 20% which also not fall under conditions of Department of tourism.

Q12 – The TAT License was revoked by the tourism office 2 years ago If I would like to reapply for the license, is it possible?

Panwa: Please note that as per the Department of tourism’s policy if the TAT license of company is revoked and you would like to operate a tourism business, you only have 2 options as:

Option 1: If you would like to operate a tourism business under the same company, you have to wait until it complete 5 years and your company can reapply for the license

Option 2: You need to incorporate a new company for the purpose of operate a tourism business and submit the documents to apply for the TAT license under the new company.

Q13 – I would like to inquire from you since the TAT license is lost, can you help me to request the new TAT license for my company?

Panwa: Yes, we can assist you to request a replacement of the TAT license which the officer will take 7 days for approval and your company have to provide the documents as:
1. Company affidavit (updated within 6 months)
2. Copy of ID card and house registration of director
3. Copy of TAT license as signed by director
4. Police letter (in case the license is lost)