Selling Cannabis in Thailand

Cannabis legalization represents an opportunity for foreigners to start a cannabis business in Thailand. According to the Thai Industrial Hemp Trade Association, the marijuana market is worth around 40 billion baht and is expected to grow to 70 billion baht by 2024.

Setting up a cannabis company necessitates the formation of a Thai Limited Company, in which a foreigner must share ownership with a Thai shareholder. Depending on your company’s operations, authorizations from the Thai Food and Drug Administration (FDA), the primary regulator of cannabis, may be required.

To buy and sell cannabis within Thailand, you can begin immediately without any additional paperwork, at least until the new Act is published.
To grow cannabis, users must first register on the FDA’s “Plookganja” mobile app or website. Simply enter your ID number, date of birth, and reason for growing marijuana (i.e. commercial reasons). This registration is only good for one year. To import parts from other countries, you must obtain permission under the Plant Propagation Act B.E. 2518 and the Plant Quarantine Act B.E. 2507. Importing extracts with less than 0.2 percent THC violates the Narcotics Code because the exemption from classification as a narcotic only applies to extracts from cannabis grown in Thailand. Such imports are thus prohibited, except for medical reasons. Furthermore, cannabis cannot be imported for the production of food or cosmetics.

To sell cannabis extract-containing food, drink, or cosmetics, the extract must not contain more than 0.2 percent THC. Furthermore, the Food Act and its bylaws prohibit the use of cannabis inflorescence in food. You must apply for food registration or authorization to use food labels if your food contains CBD extracts. You also must apply for a food production site and a food serial number if you want to produce food for sale. The FDA manages the registration process.

Thailand is now the first Asian country to legalize marijuana for personal use, cultivation, and possession. It is necessary to distinguish between the plant and its extracts. These are still considered narcotics unless they:

1. Contain no more than 0.2 percent tetrahydrocannabinol (THC); and -Are cultivated in Thailand from seeds.

2. Are classified as a medical device under hospital equipment legislation and used only for special uses.

3. Furthermore, recreational use of the plant and public smoking remain illegal, and these offenses can result in fines of up to 25,000 baht and prison terms of up to 3 months.

A new Cannabis-Hemp Act is being drafted. This act will regulate the cultivation, use, and sale of cannabis plants. The Act will define, among other things, the authorizations required for businesses and the penalties for recreational use. While the Act was supposed to be announced by June 9, 2022, it is still being reviewed by Parliament.

There is nowadays very little regulation concerning the production, use, and sale of cannabis while the Act is being drafted. Cannabis flowers were designated as a “controlled herb” by a ministerial regulation, making them inaccessible to minors under the age of 20 and pregnant/breastfeeding women. Furthermore, patients who have been prescribed cannabis may possess no more than the amount required for 30 days of use.

Following the publication of the new Act, various licenses will be needed for growing cannabis (50,000 baht), generating extracts (50,000 baht), selling cannabis plants (5,000 baht), importing and exporting cannabis, and so on. The FDA will issue these licenses, which will be valid for three years. Failure to obtain a license is punishable by up to three years in prison and/or a fine of up to 300,000 baht.

We can help you register your company and obtain the necessary licenses to sell cannabis in Thailand. Contact us today by sending information about the nature of your business. Is it planting, cultivation, extraction of herbs or only selling? What cannabis products do you want to sell?

Before proceeding, we can arrange a meeting with our lawyer to ensure that you can start your business legally. If not, we can work together to find solutions so that you are compliant and do not incur unnecessary costs or risks. This meeting will cover the following laws and regulations:

The new Cannabis and Hemp Act will be adopted to manage, administrate, and limit cannabis and hemp production, extraction, processing, and usage.

Despite the fact that all elements of cannabis and hemp, as well as some extracts, are no longer classified as narcotic substances, law and regulation are still required to limit and manage any abuse.

To ensure a seamless transition, the law will be officially publicized before the date of entry into effect of the notification B.E. 2565. The law may include crucial elements such as: