Is Making Money from my Condo Allowed?

The condominium is one of the best investment for any foreigner in Thailand. It’s the best the form of real estate that expats and foreign retirees can put their investment into, as according to the laws of Thailand. The 1979 condo Act of Thailand lays out the rules for foreign ownership of condo units in the country.

just in case that you do not consider, click here to refresh your information on what the law says approximately overseas condo ownership.

Condominiums can have outstanding Returns for You

As with every investment, your purchase of a condo unit can and need to give you excellent returns. it is able to feature more than just a place for you and your own family to stay in. let’s take, as an instance, which you’re a businessman who has to often go to Thailand each year on official matters. You stay 30 days at a time, and then you move back to your home country to manage your business there. What takes place when you are long gone and there’s no one living within the unit?

Some people absolutely buy their condominium units as a preparation for their eventual move to Thailand in the future. even though it is still years away, some people do purchase condos already in advance. They then just make use of the condo as a method to make some money to at least recoup some of their investment in the unit.

You, too, can try this. if you have purchased a apartment unit which you depart within the care of a neighborhood Thai that has your self assurance, you ought to begin thinking about the way you, and probable your caretaker, could make cash out of that. the answer: sublease the condo unit.

It is LEGAL!

Because Thailand is such a lovely location, you may find your friends trying to go over to the country however they don’t have a place to stay. temporarily renting out your condominium unit to them is a good idea – you can work on cheap costs so that they’d want to pick staying at your condominium as opposed to going to a luxurious hotel and spend a whole lot of cash on astronomical accommodation prices. it’s far perfectly legal, because you are the proprietor of the condominium unit.

In the event that you are engaged in a long-term lease on the condo unit, but you aren’t staying there completely for now, you can negotiate a clause within the contract to allow for subleasing. that is the most effective way that you could legally rent out the condominium to your friends who are coming over to Thailand for a vacation. it would take a few negotiating and perhaps a few additional terms to your agreement, however it would absolutely be well worth the attempt for your part.

Real estate is certainly a tremendous investment everybody can make. With a condominium unit in Thailand, you’re establishing lots of doors of opportunities for yourself. It’s extra than just an area to call home in Thailand – it may also be a method to earn residual income.

Why Investing in Phuket is Good

Phuket Island is undeniably one of the world’s famous destination for travelers and expatriates alike who long for retirement or a quick vacation in Thailand. within the fourth area of 2012 on my own, the real estate market in Phuket Island had the sale of a total of 2,789 units to foreign buyersit has been discovered to be gradually moving up for in years on years, making the island an addition to the list of prime alternatives for the overseas investor.

However what does is it that makes overseas investors come flocking over to this extraordinary island in Thailand? well, there are three reasons behind for it – the lovely beachesthe numerous activities you can enjoy while staying in Phuket, and the distinctly inexpensive price of living inside the island.

How costly is it staying in Phuket?

Common price range of living in Phuket is quite low cost, as we’ve noted in advance. A  single meal in an cheaper restaurant for one individual costs less than of THB100 which costs only roughly$2.  A person can fulfill his hunger on a budget not less than $10 for a day! Adding in fuel prices are also low here, with an average price of $1 a liter. Although transportation can be a bit of an expense, there are cheaper option wherein you can rent a motorbike or car instead of paying for one way trips.

A place for relaxation and fun activities.

 

Phuket is a traveler’s hub, first and foremostit’s far best proper and even expected that there can be a number of activities for everyone who comes to the island. they are too numerous to be mentioned on this blog, so let’s just summarize the activitiesthere is a extensive variety of activities inside the island. you may cross on eco- tours and revel in nature on this side of the tropics. tourists can visit the beaches and interact in various water-based sports activities like sea kayaking, parasailing surfing and others, or you could take a cruise onboard a luxury yacht. Unique attractions in are also in Phuket such as the Baan Teelanka or the “upside down house.” or even you can go on a temple hopping tour around the island.

If you may not like doing some tours and island hopping, Phuket is where you could discover many white sand beaches! The island has an area of only 540-square kilometers, so residents and expats don’t need to drive very far to be able to enjoy sandy beaches and some sun. The weather inside the island is likewise favorable, with rains anticipated only at some point of may until October – those months mark the monsoon rain season for the island. In all different months, people can expect by and large sunny days which are perfect for heading over to the beach.

If you may want to live in Phuket, foreign expats are allowing themselves the chance to enjoy all that the island has to offer since it just outside their doorstep. Contact our business lawyer now and find out what it takes to invest on a property and business in Phuket Island. that is possibly the best investment any expat can make within the country of Thailand.

 

 

business registration

Advantages and How To Setup Limited Company in Thailand

Thailand, like any other countries within the Southeast Asian region, encourages overseas investors to their country to enhance their economic activities. And unlike other countries within the area, Thailand happens to have the proper circumstances, conditions and enticements to lure foreign investment into the country. And for you to facilitate the influx of foreign companies to Thailand, several systems were set up from which foreign investors can pick after they want to set up a corporation inside the country.

Private limited company

one of the most often used legal entities in Thailand is the private limited company, which has the same features and functions as the limited liability company (LLC) in the country. In Thailand, a private limited company is used as a way to operate enterprise in accordance with the business and investment laws of Thailand. it’s far required that 51% of a organisation’s stocks have to be held through Thai nationals. The last 49% can be held by using anyone which include foreign investors.

Advantages of private limited corporation

the biggest benefit of establishing  a private limited company is the fact that legally, it is a stand-alone company under Thai law. And for foreign investors who need to govern the ownership of the corporation, the 49% limit can be exceeded or exempted, if the corporation is granted a foreign business License, which means the business have to be particular and need to not compete with neighborhood Thai businesses.

Setting Up

To set this type of business structure, at least three individual promoters (shareholders) is required, and at least one director is elected to manage the business or the organization. The business registration process includes:

• Reservation of name. this is done via filing a signed name Reservation form to the department of business development of the Ministry of commerce (MOC). The form need to include the preferred names along with the alternative names which may be taken into consideration if the primary names have already been used by different entities.

• Submit Memorandum of association or MOA. This should include the name of the company, the province where the company will function, scope of organization’s business, capital (including the number of shares and their par value) to be registered, and the names of all of the promoters.

• Calling of Statutory meeting. once the share structure is decided, a statutory meeting is called to facilitate:

• Adoption of Articles of association (by-laws). A Thai lawyer can help out in preparing the Articles of association.

• Ratification of any contract entered into which include expenses incurred with the aid of the promoters in promoting the organization

• fixing the amount of remuneration, to be paid to the promoters

• fixing the number of preferred stocks to be issued and the nature and volume of the preferential rights accruing to them

• fixing the number of ordinary shares or preferred shares to be allotted as fully or partly paid-up

• Appointment of the initial directors and auditors and determining the respective powers of the directors

• Registration of company. inside three months from the date of the statutory meeting, the directors should publish the application to check in the company. Failure to register inside the specified period, the company statutory meeting shall be nullified and void. when this takes place, a meeting for persons who reserve will be arranged so they can buy the stocks again.

• Tax documents Registration. businesses that are liable for income tax need to register and obtain a tax identification card and number from the revenue department within 2 months of the incorporation date or at the start of the operations.

Workers Rights in Thailand

As in any country worldwide international, the government of Thailand has established terms and conditions protecting the interests of both the company and the employee. Thailand’s labor protection Act 2541 (1998) of the department of labor protection and Welfare defines the rights of employees and the responsibilities of employers. underneath the provisions of the Act 2541, all employers need to outline the terms of employment for their workforce. Employers with 10 or more regular personnel are required by way of law to specify working guidelines and policies – a copy of which must be submitted to the department of labor protection and Welfare and published at the work premises.

The following rights of personnel are defined in the labor protection Act 2541 which can be normally violated by employers:

Regular working hours

Employers that require their personnel to work for more than eight hours a day or exceeding forty eight hours per week are violating the terms beneath the labor protection Act 2541.

Breaks during regular work hours

Any employer that does not offer relaxation duration of not less than one hour a day after working 5 hours violates the provision concerning required rest period to be given by means of employers to their employees.

Weekly holidays

An organization violates the worker’s rights if he:

• Does not allow an worker to have at least one day off per week as a weekly holiday or the rest day is given after 7 days of continuous operation.

• Does not consist of the weekly holiday within the basic pay of the regular personnel.

National Holidays

Employers violate the provisions of the employee’s rights in the event that they don’t provide their personnel with thirteen national holidays including national labor day. If a holiday falls on a weekly holiday, the worker will be given a further holiday on the subsequent working day. The employers have to pay the personnel their fundamental pay on national holidays.

Annual leave

If an organization has an employee that has worked for one full year continuously, the worker is entitled to an annual vacation of not less than six working days. employees operating for less than 365 days could be entitled to an annual vacation on pro-rata basis. Failure to provide this can be in violation of the worker’s rights.

Basic Pay

An employee is entitled to get his basic pay not lower than minimum rate of basic pay as mandated by using the government. If employees are paid lower than minimum rate of basic pay, the employers are in violation of the basic pay rights of the employees.

Overtime Pay, Holiday Pay and Holiday Overtime Pay

An organization may also require an employee to work extra time or on holidays as necessary to the continuous overall performance of work but must be pay overtime rate. by law, employers may also require an employee to work on holiday if business is that of a hotel, theater, transport, restaurant, café, club, society, medical establishment or such other companies as prescribed by the Ministerial regulations with consent of the worker for each instance.

Employers that require employees to work beyond regular time on a working day and do not pay time beyond regulation at the rate of no longer less than one and a half times the rate of the hourly basic pay earned in normal working hours for the extra time hours worked, or no longer much less than one and half times the rate for each unit of output on a working day for employees who receive basic pay upon output. If the overtime coincides with a holiday, the corporation shall pay holiday overtime pay on vacations to the worker of not less than treble basic pay rate earned according to hour or per unit of output on a ordinary working day.

business registration

Steps on How to Register Company in Thailand

Business entrepreneurs making plans to operate a business in Thailand should take time to get acquainted with Thai laws on registration of companies.
Businesses in Thailand are labeled underneath Thai laws as:

  • Sole proprietorship – this ismuch likesole business ownership structure within the America.
  •  Partnership – this is similar to a partnership corporation in other countries. There are two kinds of partnership: limited and ordinary.
  • Limited company – this is similar to the limited liability company (LLC) structure in the United States. Which is formed through dividing the capital into equal share. The shareholder’s legal responsibility is limited to the amount of stocks held by means of the shareholder. The most common business structure used in Thailand is the limited company. The following registration techniques are in accordance with what the Ministry of commerce has stipulated.

Step 1. Select Promoters (Shareholders). A private limited company requires a minimum of three promoters while a public limited company needs 15 promoters. Through a n assembly (required by law), the promoters will determine upon a listing of company names (at least 3 names) to test for availability.

Step 2. Publish the chosen company names for reservation. This process will take a look at if there are different companies that have used your proposed company name. If a name is accepted you may continue with the following step. otherwise, you may publish possible company names again till a call is cleared in your business.

Step 3. A statutory meeting with promoters as required by Thai law must be convened to:

• approve a company name
• decide official address
• set up goals of the organization
• set quantity of share capital to be registered and how it is divided
• make a list of promoters’ names, addresses, occupations, and number of stocks each

Step 4. A “Memorandum of association” (MOA) containing the information in

Step 3, must be filed with the district office protecting the official company address, within 30 days of approval of the company name. fees need to be paid: 50 baht per 100,000 baht of registered capital, minimum 500 baht and maximum 25,000 baht.

Step 5. put together your company logo, create a company stamp with your logo.

Step 6. The agency registration application need to be submitted by way of the directors withinthree months after the MOA has been filed. the following should be part of the submission:
• cash payment for the registration fee (500 baht in line with 100,000 baht of registered capital, minimum 5,000 baht, maximum 250,000 baht)
• completely filled out company documentation
• the company stamp

Step 7. you will get your company papers again after a day or two or after the MOC has completed the registration of your corporation.

Step 8. After your company registration certificates is issued, you need to go  to the revenue department to get a company tax identity card. A laminated card can be issued collectively with your company tax identification number.

Step 9. go to the bank together with your identification card, company tax id card and company documentation and set up a bank account.

Step 10. you’re ready to operate your business.

10 steps on how to register a company in Thailand

Businesses planning to operate a business in Thailand should take time to get familiarized with Thai laws on registration of companies.

Companies in Thailand are classified under Thai laws as:

Sole proprietorship – this is similar to sole business ownership structure in the United States.
Partnership –  this is the same as a partnership company in other countries. There are two types of partnership: limited and ordinary.
Limited Company – this is the same as the limited liability company (LLC) structure in the United States. This is formed by dividing the capital into equal share. The shareholder’s liability is limited to the amount of shares held by the shareholder.

The most common business structure used in Thailand is the Limited Company. The following registration procedures are in accordance with what the Ministry of Commerce has stipulated.

Step 1. Select Promoters (Shareholders). A private limited company requires at least 3 promoters while a public limited company needs 15 promoters. Through a meeting (required by law), the promoters will decide upon a list of company names (at least 3 names) to check for availability.

Step 2. Submit the chosen company names for reservation. This process will check if there are other companies that have used your proposed company name. If a name is approved you can proceed with the next step. Otherwise, you will submit possible company names again until a name is cleared for your business.

Step 3. A statutory meeting with promoters as required by Thai law must be convened to:

  • approve a company name
  • determine official address
  • establish objectives of the company
  • set amount of share capital to be registered and how it is divided
  • make a list of promoters names, addresses, occupations, and number of shares each

Step 4. A ìMemorandum of Associationî (MOA) containing the information in Step 3, must be filed with the district office covering the official company address, within 30 days of approval of the company name. Fees have to be paid: 50 baht per 100,000 baht of registered capital, minimum 500 baht and maximum 25,000 baht.

Step 5. Prepare your company logo, create a company stamp with your logo.

Step 6. The company registration application must be submitted by the Directors within 3 months after the MOA has been filed. The following should be part of the submission:

  • cash payment for the registration fee (500 baht per 100,000 baht of registered capital, minimum 5,000 baht, maximum 250,000 baht)
  • completely filled out company documentation
  • the company stamp

Step 7. You will get your company papers back after a day or two or after the MOC has completed the registration of your company.

Step 8. After your company registration certificate is issued, you must go to the Revenue Department to get a company tax identity card. A laminated card will be issued together with your company tax ID number.

Step 9. Go to the bank with your ID card, company tax ID card and company documentation and set up a bank account.

Step 10. You are ready to operate your business.