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Latest update of the bill

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HomeCompany registrationSelling Cannabis in Thailand

Learn more about Selling cannabis in Thailand

It is now possible to grow and sell cannabis in Thailand under certain regulations. To do so, you need to obtain specific licences according to your activity and also register a cannabis business. Thailand passed a law decriminalising specific parts and uses of cannabis plants on 9 February 2022. This law came into force on 9 June 2022, which means that all parts of the cannabis plant (leaves, stems, roots, seeds, etc.) have been removed from category 5 and are therefore no longer considered as narcotics (Notification B.E. 2565). Themis Partner provides you with the summary and analysis notes of the cannabis and hemp bill available in Thai and English to ensure you are in compliance with the law before planting, cultivating, extracting, sale and/or advertising of cannabis and hemp in Thailand.

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How to setting up a Cannabis Business 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.

Selling cannabis thailand

What are the restrictions regarding selling cannabis in Thailand?

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.

What does the Cannabis law currently say?

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.

What uses can be made of cannabis?

1. Actions you can take:

➤ You can grow cannabis at home, but you must first register on the FDA's official website
➤ You can grow cannabis for commercial purposes and create a cannabis-based product, but you must also register your product on the FDA's website
➤ You can use cannabis recreationally, but only within your home and without bothering (e.g., smell) or disturbing people in the surrounding area
➤ Cannabis can be used for medical purposes, and patients can possess up to 30 days' worth of cannabis

2. What you are not permitted to do:

➤ You are not permitted to use cannabis products containing more than 0.2 percent tetrahydrocannabinol, or THC (the component in marijuana that causes the "high")
➤ You are not permitted to use or smoke cannabis in public places, such as schools and shopping malls, or in large crowds because the odor may annoy others
➤ Cannabis cannot be sold to anyone under the age of 20, pregnant women, women who are currently breastfeeding, or individuals who fall into a specific category as defined by the state
➤ There is no way to bring cannabis into or out of Thailand

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:

➤ All the latest updates on government restrictions and regulations to follow
➤ Any licenses needed to sell herbs
➤ Government fees for growing marijuana in an indoor commercial facility or retail shop
➤ Zoning requirements, if any
➤ Packaging requirements for cannabis products

What is the purpose of the new Cannabis and Hemp Act?

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:

➤ the formation of a cannabis-herb committee Authorization for manufacture, import, export, and distribution, among other things
➤ Notification of cultivation for domestic, medicinal, or other purposes, etc
➤ Sale to children, pregnant women, nursing mothers, and others is prohibited
➤ Use is prohibited

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