Approximately 700 licenses have been issued for Cultivation, processing and distribution of medical cannabis. In March 2020 alone almost 50 licenses were issued for cultivation and extraction.
The government has estimated the cannabis could add as much as USD2.5 billion to the national economy when fully deregulated. With the current downturn in tourism this is seen as a potential bright spot for both medical tourism and exports.
Cannabis for recreational use has never been contemplated in the current round of regulations and is unlikely to be deregulated soon.
Licenses are being coordinated by the ONCB (Office of Narcotics Control Board), the FDA (Food and Drug Administration) and the Ministry of Public Health. The GPO (Government Pharmaceutical Agency) plays a significant role as the key state-owned research agency. Regulations are being slowly but the current legislation limits licenses to a 5 year evaluation period..
Although private companies are not yet being granted licenses, the Government has announced it is actively working on these regulations. Currently companies who want to cultivate cannabis must work in cooperation and under the main license of one of the authorized groups. The company further must be registered under Thai law, have an office registered in Thailand, and at least two/thirds of directors, partners or shareholders must be Thai nationals. The “Guideline for approval of a request for plantation of cannabis B.E. 2562” defines the following groups as qualified for a cannabis cultivation license:
Early starters in this field will undoubtably have the advantage when the legislation allows for export and expands the category of growing and processing licenses. If you are holding back for relaxed regulations then this is unlikely to happen within the current 5 year evaluation period. It is our belief the advantages of being one of the initial licensees outweighs the current restrictions.
Silk Legal’s highly proficient lawyers, who also specialize in a number of different practice areas such as corporate and intellectual property law, will help you navigate through these regulations to ensure that you are fully compliant with the Kingdom’s cannabis laws.
Forming a cannabis company in Thailand involves making informed decisions and following detailed steps to make sure the entire process has been done correctly not only to adhere to regulations, but also to avoid future complications. Knowledgeable not only in cannabis law, our lawyers are also highly proficient in structuring and incorporating a cannabis company in the Kingdom.
On top of fulfilling the requirements of incorporating a company in Thailand, we ensure that your company fully complies with the relevant regulations surrounding cannabis activities, including licenses, tax requirements, and any other applicable laws.