Thailand’s healthcare and medical service sector has become one of the fastest-growing industries in Southeast Asia, supported by the government’s policy to promote Thailand as a regional medical hub. The country’s high-quality healthcare standards, skilled professionals, and strategic location have attracted both Thai and foreign investors.
However, establishing a medical center, hospital, or healthcare facility in Thailand requires careful compliance with various laws and regulations, particularly regarding licensing, foreign ownership, and investment promotion schemes.
Our law firm in Thailand, and particularly our corporate lawyers in Bangkok of H&P, have prepared a summary that outlines the legal framework, licensing requirements, and investment promotion options under the Board of Investment (BOI) for medical-related businesses in Thailand.
1. Regulatory and Licensing Framework
Depending on the scope of operations, investors may need to obtain multiple licenses and approvals from relevant government authorities.
(a) Medical Facility License
Any entity operating a clinic, medical center, or hospital must obtain:
• License to establish and operate a medical facility, issued under the Health Facility Act B.E. 2541 (1998) by the Department of Health Service Support (DHSS), Ministry of Public Health.
• License for the medical facility operator, which must be held by a qualified medical professional (e.g., physician, medical technologist, or radiologic technologist).
• Compliance with specific standards under the Hospital Act if inpatient treatment is provided.
(b) Medical Device and Equipment License
If the facility uses medical equipment such as X-ray, MRI, or laser devices, registration and approval must be obtained from the Thai Food and Drug Administration (FDA) under the Medical Device Act B.E. 2551 (2008).
(c) Drug, Pharmaceutical, and Medical Supply License
For activities involving drugs or medical supplies, the following licenses may apply:
• License to import/export modern drugs under the Drug Act B.E. 2510 (1967).
• License to sell or distribute drugs or medical devices.
• Drug manufacturing license (if the company produces or repackages drugs locally).
• Warehouse/storage license for pharmaceutical or medical device distribution.
• Advertising license for medical products.
2. Business Models in the Medical Sector
Investors can consider different models depending on the desired service scope:
• Specialty Medical Center or Clinic – focuses on specific treatments (e.g., dermatology, fertility, rehabilitation).
• General Hospital – provides comprehensive medical and surgical care.
• Rehabilitation or Wellness Center – focuses on post-treatment care, physical therapy, or holistic recovery.
• Medical Laboratory and Diagnostic Services – provides testing, radiology, and pathology services.
• Pharmaceutical Import, Distribution, or Manufacturing – supports the medical supply chain.
Each model requires tailored licenses and may involve different regulatory agencies under the Ministry of Public Health and FDA.
3. BOI Promotion for Medical and Healthcare Businesses
To encourage investment in Thailand’s medical industry, the Board of Investment (BOI) provides both tax and non-tax incentives for a wide range of healthcare-related activities.
The BOI classifies medical-related businesses into several categories under the medical industry group, including:
1. Hospital and Medical Center Business – for facilities providing medical treatment or specialized healthcare.
2. Specialty Medical Center – focusing on advanced or technology-based medical treatments.
3. Health Rehabilitation Center – offering continuous rehabilitation programs with overnight stay facilities.
4. Production and R&D of Medical Devices, Pharmaceutical Products, and Biotechnology – for companies engaged in manufacturing or developing healthcare technology and products.
Key Conditions and Benefits
• Minimum investment for some categories (e.g., Health Rehabilitation Center) is THB 30 million, excluding land and working capital.
• Projects must employ medical technology or innovation-based healthcare solutions.
• Certain activities—especially those providing direct treatment—may require the applying entity to be a Thai company due to restrictions under the Foreign Business Act.
• Tax incentives may include exemption or reduction of corporate income tax for up to eight years.
• Non-tax incentives include:
o 100% foreign ownership (for eligible activities)
o Exemption of import duty on machinery and raw materials
o Permission to bring in foreign experts and technicians
o Facilitation of visa and work permit processes for expatriate staff
The BOI’s policy aims to make Thailand a regional hub for medical excellence, fostering technology transfer, and supporting both Thai and foreign participation in healthcare development.
4. Foreign Business Licensing
In practice, applications submitted to the Department of Business Development (DBD) are reviewed on a case-by-case basis, taking into consideration factors such as public benefit, level of Thai participation, and compliance with the Ministry of Public Health regulations.
However, for projects that have been promoted by the Board of Investment (BOI), foreign investors are exempt from obtaining a Foreign Business License (FBL) under Section 12 of the Foreign Business Act B.E. 2542 (1999), as BOI promotion automatically grants the right to operate the approved business activities.
Nevertheless, the company is still required to apply for a Foreign Business Certificate (FBC) from the DBD to formally confirm that the business operation is conducted under BOI promotion and within the approved scope of activities.
5. Key Considerations for Investors
• Ensure that the premises, personnel, and medical equipment comply with standards set by the Ministry of Public Health.
• Consider whether the business should apply for BOI promotion to obtain tax and non-tax privileges.
• Confirm whether the entity must be majority Thai-owned for certain activities, such as hospital or clinical services.
• Sequence license applications correctly — facility, FDA, BOI, and FBL.
• Conduct due diligence on zoning, building permits, and environmental compliance before operation.
6. Conclusion
Thailand provides a highly supportive legal and investment environment for medical and healthcare ventures.
Investors can establish various types of medical facilities, from clinics and hospitals to rehabilitation and research centers, by obtaining the necessary licenses and, where applicable, BOI promotion to enhance long-term competitiveness.
At Herrera and Partners (H&P), we have worked assisting both Thai and foreign investors in establishing and operating healthcare businesses in Thailand.
Our law firm in Thailand, with experience advising clients in medical, veterinary and pharmaceutical sector, provides comprehensive legal, regulatory, and tax advisory services to ensure full compliance with Thai law while helping clients maximize available investment privileges and tax benefits.
With our integrated team of Thai attorneys, foreign legal advisers and accountants, H&P offers end-to-end solutions covering company establishment, medical licensing, BOI promotion, and ongoing compliance with Thai healthcare regulations.
If you are interested in establishing a Medical Center or Healthcare Business in Thailand, or just need an initial legal consultation with a Bangkok corporate lawyer with experience in the medical business in Thailand, please do not hesitate to contact us at [email protected]
