Guide to Starting a Cannabis Business in Thailand

In June 2022, Thailand became the first Asian country to proceed with decriminalizing cannabis. However, the Thai government has restricted its use to “medical purposes” in 2025. 

One of the most challenging new compliance requirements is that cannabis businesses must have a licensed or registered traditional medicine practitioner on-site at all times to operate legally. Many smaller operators have been unable to absorb these new staffing and compliance costs, resulting in significant financial losses.

In this article, we will provide you with unique insights about the cannabis trade in Thailand, the latest regulatory changes, and a guide to starting a cannabis business in the country.

New Cannabis Regulations in Thailand in 2025–2026

In 2025, the Thai government reclassified cannabis as a controlled herb, imposing new restrictions that prohibit recreational sale while still allowing medicinal use. The Ministerial Notification on Controlled Herbs (Cannabis), B.E. 2568 introduced the following framework:

• Sale of cannabis without a licensed medical prescription is banned. Buyers must obtain a prescription from authorized medical professionals.
• Cannabis cannot be sold through vending machines, online platforms, or in designated public places like temples, parks, zoos, and amusement parks.
• Licensed cannabis businesses must operate from owned or leased premises with adequate odor control, storage conditions, and sanitation. Lease agreements must typically be at least three years or have written consent from owners.
• Advertising of cannabis products is prohibited, and smoking cannabis in public is illegal (fines of up to 25,000 baht).
• Growers and sellers must comply with Good Agriculture and Collection Practices (GACP) certification regulated by the Department of Thai Traditional and Alternative Medicine (DTAM).
• Cannabis dispensaries must maintain meticulous record-keeping, report to authorities monthly, and ensure cannabis products come from GACP-certified farms.
• The maximum dispensed supply per prescription is capped at 30 days, using the standardized Phor Thor 33 (ภ.ท. 33) prescription form.

Converting Dispensaries into Regulated Medical Clinics

On April 1, 2026, the Public Health Ministry announced a major policy shift to convert the remaining approximately 11,000 cannabis dispensaries into regulated medical clinics.  This builds on the 2025 move on restricting cannabis use to medical purposes, requiring prescriptions.

Key elements of this policy shift include:

• Three-Year Transition Period: Existing businesses will not be forced to convert overnight. Instead, once a current license expires, operators will need to meet the new medical facility requirements before renewing. Businesses have up to three years from the point of renewal to comply.
• Upgrade to Medical Facility Standard: Any outlet seeking license renewal must upgrade into a medical facility staffed by qualified professionals such as licensed doctors or registered Thai traditional medicine practitioners. Cannabis must be dispensed within a proper medical setting, not through general retail.
• Licensing Verification System: The Ministry of Public Health has introduced a visual verification system (stickers displayed at shopfronts) showing whether each outlet is properly licensed and when its license expires. This makes inspections easier for enforcement officers and helps patients identify legally compliant medical cannabis service points.
• Expanded Enforcement Authority: Administrative officers are now empowered to act under the Protection and Promotion of Thai Traditional Medicine Intelligence Act, alongside the Public Health Ministry and police.
• Training and Support: The Department of Thai Traditional and Alternative Medicine (DTAM) has prepared support systems for operators and staff, including training programs and e-learning modules, to assist businesses in adapting to the new regulatory model.

Public Health Minister Pattana Promphat has stated that hospitals nationwide are also now ready to dispense medical cannabis. This statement reinforces the government’s intent to anchor cannabis access within mainstream healthcare rather than open retail.

Contact Emerhub’s local experts for more information on how you can maintain your Cannabis business in Thailand. 

Licenses Needed to Operate a Cannabis Business in Thailand

With the new medical framework in place, businesses need to obtain specific licenses and permits to legally operate a cannabis business in Thailand. These include the following:

Medical Cannabis Dispensary License

Required to legally sell cannabis products in Thailand. Dispensaries must be licensed under the Thai Traditional Medicine Act and are only allowed to sell cannabis to patients with valid medical prescriptions. To obtain this license, you must fulfill the following key requirements:

• The dispensary must be formally registered and licensed under the Thai Traditional Medicine Act.
• The business premises must meet hygiene, security, and odor control standards, suitable for medical use and product storage.
• The dispensary must have certified medical personnel on-site at all times during operating hours. These professionals include licensed medical doctors, pharmacists, or traditional Thai medicine practitioners authorized to prescribe cannabis.
• Sales of cannabis products are allowed only to patients who present valid medical prescriptions using the standardized Phor Thor 33 prescription form.
• The dispensary must implement prescription verification systems to confirm patient eligibility and ensure cannabis dispensed does not exceed the maximum 30-day supply per prescription.

Cultivation Certification (GACP)

Cannabis growers must obtain Good Agriculture and Collection Practices (GACP) certification issued exclusively by DTAM under the Ministry of Public Health. The certification ensures cannabis is cultivated, harvested, and collected following strict quality, safety, and environmental standards. The certification process involves detailed documentation, maintaining hygienic conditions, staff training, and environmentally friendly agricultural practices.

Growers must ensure air quality, pest control, soil safety, water purity, and proper lighting and temperature control in growing facilities. This certification is valid for three years and is required for all cannabis cultivation intended for medical use, supply to licensed dispensaries, and export.

Commercial Processing and Sales License

Businesses involved in research, processing, export, or commercial sale of cannabis products must obtain this license under the Thai Traditional Medicine Wisdom Protection and Promotion Act. Key requirements include:

• The business premises must be a licensed medical facility, pharmacy, licensed herbal product production or sales location, or registered workplace of a licensed traditional healer.
• Applicants must own the premises, hold at least a three-year lease, or have written permission from the property owner.
• Premises must have effective odor and smoke control systems to prevent nuisance to neighbors.
• Sanitary storage facilities are required, with protection from sunlight, temperature and humidity control, no direct contact with the floor, and physical separation from other substances.
• At least one trained staff member certified by DTAM must be present during operating hours.

How to Register a Cannabis Business in Thailand

Currently, cannabis businesses can only be started by Thai-majority businesses that have more than 51% local shares. This is primarily an effort by the Thai government to protect local entities against more established foreign competitors. The majority of cannabis-related activities are also restricted under the Foreign Business Act (FBA), notably farming and retail activities.

It is still possible for a foreign investor to start a cannabis business in Thailand by incorporating a Thai majority limited company. This entity type limits foreign shares at 49%; however, it is possible to retain control through the common practice of establishing preferential shares (which carry increased voting rights).

Emerhub can assist you throughout the entire company registration process and will ensure that your cannabis business remains entirely compliant with Thai regulations.