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2007 Assessment

Thailand: Integrity Indicators Scorecard

Thailand: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation
Indicators		Score
67	Are business licenses available to all citizens?	88
68	Are there transparent business regulatory requirements for basic health, environmental, and safety standards?	100
69	Does government effectively enforce basic health, environmental, and safety standards on businesses?	50

Indicator and sub-Indicator Details

Are business licenses available to all citizens?

67a: In law, anyone may apply for a business license.

Score:

YES

Comments:

References: Business License Act of 1946, chapter 1, section 5 (4) and chapter 2, section 8

67b: In law, a complaint mechanism exists if a business license request is denied.

Score:

YES

Comments: A citizen can petition to the director or the chief of office that they want to apply for a business license. The official must explain the reasons for denying a license.

References: Telephone interview with official from the Business Consulting Center, 0-2547-5995-6

67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period.

Score:

100

Comments: Citizens who apply for a business license through the Internet will receive it in 1-2 days (official time). The IFC's (World Bank) Doing Business survey ranks Thailand 12th in the world when it comes to dealing with licenses.

References: Telephone interview with official from the Business License Center, Department of Business Development, 0-2547-5155-4

67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost.

Score:

100

Comments: The minimum fee for the limited partnership license is 1,000 baht (US$30). For a limited company the fee is 5,000 baht ($US150). A citizen can request the license at many business office centers.

References: [ LINK ]

Peer Review Comments: Other indirect costs can greatly increase this cost, depending on the license.

Are there transparent business regulatory requirements for basic health, environmental, and safety standards?

68a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available.

Score:

YES

Comments:

References: Public Health Act of 1992, section 4

68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available.

Score:

YES

Comments:

References: Factory Act of 1992, section 32

68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available.

Score:

YES

Comments:

References: Labour Protection Act of 1998, section 8, 100-103 and 107

Does government effectively enforce basic health, environmental, and safety standards on businesses?

69a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: The article reports that 45 factories in Mabthabudh were noted as primary sources of pollution. A group of citizens in eastern Thailand decided to charge Mr. Kosit Panpiemratt, chairman of the Committee of National Environment, for failing to exercise the functions referred to in the Act of Parliament to Support and Protect the Environment 1992, section 59.

References: Article, Than Set Thakit News, Aug. 16, 2007

Act of Parliament to Support and Protect Environment 1992, section 59

Peer Review Comments: Thailand is one of the more discriminatory enforcers of regulators. A walk in the city will show this to be the case.

69b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner.

Score:

100

References: Article, Than Set Thakit News, Aug. 16, 2007

Act of Parliament to Support and Protect Environment 1992, section 59

Peer Review Comments: International data show an uneven application.

69c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: The article reports on a small fireworks factory in Ayudhaya province that experienced a series of explosions but was allowed to continue to conduct its business.

References: Article, The Hazard Material Management, Associate Professor Suchata Chinajit and Associate Professor Dr. Warapan Danautra www.chemtrack.org/News-Detail.asp?TID=3&ID=3

Peer Review Comments: I appreciate the primary source used, but based on the international data, Thailand has a very patchy application of its regulatory framework.