Starting a Business in Thailand? Here’s what the Law Say

Thailand is one of the top locations in Asia to set up a business. it is one of the founding members of the association of South East Asian nations, and is placed strategically within the continent. you may recall it as the gateway to the rest of Asia, from which your business may want to extend to the other countries within asia. similarly, Thailand’s infrastructure is remarkable. It has 7 international airports, fast internet connection, professional educated manpower access, high-tech metropolitan transportation and it is well centrally located with other asean regions .

Thailand is a foreigner-friendly country. Its tourism is most busiest in Asia. however, when it comes to business and investment, the country is quite strict on how foreigners can make or begin a business in its jurisdiction. however, there are incentives to investing in the kingdom as the Board of investment offers exemptions, and even tax breaks for international organizations.

The foreign business Act of 1999

B.E. 2542, or often called the foreign business Act of 1999, is the regulation that governs overseas investment and businesses in Thailand. For purposes of discussion, the term “foreigner”, in the context of the law, refers not only to real persons who do not keep Thai citizenship however also entities that are majority-owned via foreigners in addition to agencies which have been registered out of the country.

The three business Annexes under BE 2542

The foreign enterprise Act divides business niches into three annexes – Annex 1, Annex 2 and Annex 3.

Annex 1 includes niches wherein foreign corporations can’t start a business in. these are niches that deal with local tradition and require an understanding of Thai way of life. The niches consist of herbal medication manufacture, rice farming, real estate development, shery, livestock and the trade of antiques which are sourced in Thailand, amongst others. but, agencies registered in countries that have treaties with Thailand can be exempt from this limitation.

Annex 2 include agencies that issue countrywide protection and security, as well as trade which have cultural and artistic effect to Thailand, and those that may have an effect on the local environment and Thailand’s natural or ecological resources. Any foreign company that needs to interact in alternate in any of these niches might need to secure a allow from the Minister of commerce. In incorporating the entity, 40% of the business’ shareholders should be Thai locals. The Minister of commerce can reduce this to 25% if the company makes an application.

Annex 3 incorporates companies that the Thai government thinks will actually lose to foreign competition. these organizations consist of legal, accounting, architectural and engineering services, in addition to hospitality services, advertising and marketing, farming, and food and drinks. it might take a license from the Director general of the Ministry of commerce to permit a foreign entity to perform in these groups.

With BE 2452, it is clearly easy now for foreigners to begin their own business in Thailand. The law lays out the standards and necessities very clearly for these businessmen. This is yet another purpose why Thailand is one of the best countries in Asia for foreigners to invest in.

Thailand Visa

Thailand Elite Visa Program

One of the most hard processes in getting into to a country is getting the right visa approved for you via that country’s authorities. Thailand isn’t an exception. even though it is really friendly to travelers and those coming in for business, the country does have a specific process for obtaining a visa.

With the Thailand Elite Visa initiative, the process turns into a lot less complicated for you as you’ve got nearly everything that you need to get visa approval. Plus, you furthermore may get to experience extraordinary benefits as a member that other travelers can’t get access to without enrolling in the application.

The Perks of   the Thailand Elite Visa program

The Visa service is part and parcel of your club in the Thailand Elite service, wherein you get to enjoy one-of-a-kind Elite private Assistant service for everything of your membership. travelling to Thailand allows you to apply these Assistants to do your bidding, and to make sure that you are able to get what you require. you’re a friend of Thailand, and you have the privilege of experiencing the country the way that regular foreigners are not able to do.

Now, under the Thailand Elite Visa program, those Elite private Assistants will take your place free of charge within the mandatory appearance before the Thai Immigration Bureau in Chaengwattana, Bangkok office. this is very handy if you are in Thailand for urgent business matters that make it not possible for you to appear before the Bureau in the 90-day time limit. you could avail of the Elite personal Assistants for your appearance everywhere in Thailand, however there are more expenses associated with the service outside Chaengwattana, Bangkok.

typically, you would need to go out the country sooner or later and go back to conform with the requirements of a more than one entry visa. The Thailand Elite Visa application gives you the Privilege entry Visa which waives that requirement. the program is designed to offer members the distinctive privilege of staying within the country like a regular Thai resident or citizen. The Privilege access Visa is legitimate for 5 years and can be renewed without difficulty along with your membership in Thailand Elite.

With the Visa to your disposal, you can stay as much as 365 days in Thailand without having to leave for a few weeks within that period as otherwise required through normal visas. in case you initially applied for a 90-day stay and you want to extend, you may try this effortlessly with this Visa as long as your membership is legitimate and active.

The Visa is exclusive to Thailand Elite members. As a member, all you need to do is apply for the visa on the Royal Thai Embassy or the Royal Thai Consulate- general, in addition to in Phuket international Airport and the Chiang Mai office of the Thai Immigration Bureau.

With the Privilege entry Visa you may follow for as a member of Thailand Elite, you could concentrate more on doing your business within the country or really to enjoy the country with out thinking about regulatory requirements.

Thailand Visa

Visa Free Travel To Thailand

If you need to go to Thailand, you would possibly want to analyze first what the requirements are for foreigners getting into the kingdom of Thailand. luckily, as it is a totally tourist-friendly country, you may discover it easier to go to Thailand as compared to visiting other nations within the Asia-Pacific. there may be really a way so that you can enter Thailand while complying with a minimum number of requirements.

Visa Exemption

If you are from the US, then you may really enter Thailand without having to apply for a Visa. this is why many nationals of the USA select Thailand for their vacations – the US has an agreement with Thailand for a visa-free entry for tourists for a limited quantity of days. in particular, US nationals can live on the kingdom of Thailand for a duration of 30 days by air or land without making use of for a visa. because of this people staying for a holiday may be positive that they will be able to capable of achieve this without being rejected by the Thailand authorities. not often does a vacation go as much as 30 days, and that’s already long sufficient to unwind and get your bearings returned. in the event that you decide to stay longer than 30 days, that is when you’ll have to apply for a visa from the Thai immigration.

If an individual does not depart Thailand prior to expiration of his/her airport permit or visa, the individual is in the country illegally. In order to depart Thailand, it will be necessary to pay an overstay fine. The fine for overstaying a visa is 500 Baht per day, up to a maximum of 20,000 Baht. The fine is payable to the Immigration Bureau, the Suvarnabhumi Airport Immigration office, or other departure point.

Other requirements

First, you may want to show files that you’ll be exiting the country inside 30 days. the kingdom wishes evidence that you may no longer overstay beyond the 30-day limit so one can approve your entry. because of this you’ll ought to present airline or train tickets that provide evidence that you’ll be exiting Thailand after 30 days. That should be easy to procure – you could book your self ahead of time, and simply re-book ought to you exchange your thoughts and increase your stay.

You need to additionally provide financial statements that prove your financial capability to fend for your self at some point of your stay in the country. each person is required to show economic statements of THB10,000 for anyone. For families, there must be an accumulative capability of THB20,000.

last but not the least, you have to have a passport that is valid for as a minimum six months from your date of entry into Thailand. British topics, however, can enter using their 12-month prolonged passports as reflected by new measures added within this yr.

No Working Visa

Even as it is a not unusual practice to enter a country on a tourist visa and secure work at some point of that term, this type of practice is unlawful in Thailand and unlawful workers are actively prosecuted. you will need to use a separate visa if you are going to Thailand for employment. You need help out of your corporation with the intention to enter Thailand as an employee, and you will have to renew the visa after one year.

if you are interested by having a vacation in Thailand, you will definitely be relieved to understand approximately the 30-day Visa free entry into the country. This arrangement relieves you of lots of the problem of paperwork just to have every week-lengthy vacation in Thailand.

Intellectual Property Phuket

Thailand IP Law Facts

Intellectual property laws are very crucial for businessmen. if you are looking to create an organization within the kingdom of Thailand, then it pays to read about Thailand’s intellectual property laws and guidelines. It’s a very complicated topic, however, and may span several articles.
For starters, however, allow us to provide some brief and fundamental facts about Thailand’s IP laws.

File for Protection as early as possible

this is true for trademarks. Thailand’s system gives extra importance to early submission of trademarks. this is to help avoid hijacking of marks particularly if you’ve already created that mark in your home country and is simply seeking to move to Thailand. before you even infuse capital into a local Thai unit of your company, make sure to have the following trademarks registered first so that you can benefit protection of the law.

IP protection is valid for a long time

Trademark protection in Thailand expires most effective after 10 years, which is a very long time indeed. You get to move approximately your company without having to fear about your trademark’s safety. when the protection does expire, you may renew it again for every other 10 years, so on and so forth. but, in order for the protection to stay legitimate, your company should actively use it to your merchandise or branding activities due to the fact a dormancy of a minimum of three consecutive years will result to untimely expiration.

There are Three classified Patents

there may be the usual patent that gives 20 years of protection to a totally innovative invention. second, Thai law additionally offers protection to designs with patents which can be valid for 10 years. ultimately, there’s the “petty patent” for minor innovations, and it offers 6 years of protection to the invention.

Thailand’s IP laws offer Exemptions for certain Patent matter

There are innovations and breakthroughs that cannot be patented in Thailand. these subject matters include animal and plant extracts, computer applications, and processes used in medication and commercial enterprise. those are intended to be shared freely to the general public because of the nature of their use.

Copyright protection is for a lifetime in Thailand

much like the rest of the world, copyright protection is in place so long as the author of the work remains alive. within the occasion that the creator passes away, his or her property can still claim copyright protection over the copyrighted work for fifty extra years.

Thailand calls for Patent application for Holders of international Patents

keeping an international patent does no longer automatically entail patent protection under Thai laws. One has to rather apply for individual patents in Thailand so that you can guard the subject matter covered by using the international patents. Holders can, but, avail of priority applications to expedite the procedure in the country.
this is for now. these are five brief information about how intellectual property laws and policies work in Thailand. hopefully, those 5 brief information have given you a basic idea of the way Thailand views intellectual belongings and what rights you may have as a author, inventor or designer.

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.

 

 

What to Choose? Condo or House & Lot?

In case you’re a Thai national, there isn’t a whole lot to consider whilst comparing those two kinds of real estate in Thailand. Locals can effortlessly buy these if they’re financially capable. For foreigners, howeverit’s far a different story. One needs to think in wisely about issues when it comes to choosing between those two real estate properties in Thailand.

Here at HWAL Legal We are able to differentiate the advantages and the disadvantages of purchasing a condo unit and purchasing land or a house-and-lot property in Thailand.

Purchasing a Condo

One of the advantages of buying a condo in Thailand is that it’s far very easy for you, as a foreigner, to accomplish that. Thai regulation allows for foreigners to have a hundred percent ownership of a condominium unit in the countrywithout having to set up a corporation or business in the countryprovided that the allocated percentage of the entire number of units in the condo for foreign ownership has no longer yet been bought out. You will notice in Thai regulation that it does permit foreigners to buy condos inside the country as long as the majority of the residents or unit proprietors in the entire project must be local Thais.

There is one downside to being an proprietor of a Thai condominium unit is that it comes with exorbitant feesthose fees are used to for renovation expenses just like the security in the project as well as the preservation for the elevators, the settling of monthly electric payments and other simple services.

Purchasing a house and lot

Most of the people, foreigners and locals alike, does prefer buying a plot of land or a house-and-lot propertythat is because owning your personal space is a lot more advantageous than buying a pre-furnished condo unit. you can pick out the lot location that you want for a lot, and you can design and construct the residence in line with your choices. However, this option is not as easy for foreigners or expatriates in Thailand.

Even if it is inexpensive to buy this type of real estate in Thailand, because it does not include the expenses associated with condominiums, it’s also risky most of the instances for foreigners. it’s far illegal, at this point, for foreigners to own these types of real estate until they do the following:

Marry a local Thai and buy the real estate in his or her name

only locals can purchase land inside the countryin case you are married to a local Thai, you could achieve this however you have to put the title in her name. It’s not terrible and it does what it is neededhowever you cannot put the belongings in your name within the unfortunate occasion that you and your partner might have to get an annulment or divorce.

own a business

If you’re planning to begin a organization in Thailand, you can purchase real estate by using putting it under the name of the organizationhowever, this business needs to be owned partially by means of locals as wellyou may be the single majority stockholder within the enterprise however there have to be some of locals in your board.

There you gothese are the comparisons that we could make in this blog in phrases of drawbacks and benefits in shopping condo unit or a lot in Thailand.

Value Added Tax (VAT) in Thailand

Value Added Tax or VAT is an evaluation tax which applies to all wholesalers, manufacturers, producers, importers, shops and other entities offering direct services until exempted underneath the revenue Code. All corporations not included by the revenue Code exemption need to sign up and adopt the VAT system.

Following are distinctive as exempted from VAT.

  • corporations with turnover not in excess of 1.8 million Baht in a year

corporations engaged in:

  • the sale and import of raw agricultural products and related items
  • the sale and import of newspapers, magazines and textbooks
  • health and academic services, domestic transport
  • leasing of immovable property
  • items exempt from import duty and destined for export-processing zones are covered in this category, along side research and technical services, labor contracts, auditing and legal services.

VAT standard rate and payment schedule

The present day VAT rate is 7%. VAT is payable on the 15th of the month following the month in which VAT is accrued. VAT will become payable on the 7th of the month following the month of the fee if self-assessment of VAT output is needed at the price of certain income to non-citizens.

Agencies that qualify for VAT exemptions ought to still pay VAT on products and services it purchases but isn’t entitled to a VAT refund. Such corporations are not required to gather VAT on its income or document month-to-month VAT forms. If the exempt organisation opts to do so voluntarily, it’ll be entitled to a VAT refund if registered for VAT functions.

Real estate Taxes

Residence and land tax and local development tax are levied via the municipalities on Thai properties. it’s far imposed annually at the proprietors of a residence, a building structure or land that is rented or used commercially. real estate tax fee is 12.5% of the actual or assessed annual property value of the assets. The local development tax is likewise an annual tax paid through the owner of the land or the individual in ownership of the land. The local development tax charge will depend upon the appraised cost of the property in line with the assessment of local government. The price ranges from 0.25% to 0.95%.

Taxes Imposed on Thai belongings

The following tax requirements should be considered when buying belongings in Thailand:

VAT of 7 percent paid each month
Land and residence Tax of 12.5% of the rental value of the property to be paid every year
Withholding Tax of 15% applicable to rents paid to nonresident individuals and foreign agencies without active commercial enterprise operations in Thailand
The need for Tax planning

The advantage of tax planning is that everybody gets to arrange their financial affairs so they may be aware about precisely how much they need to pay in taxes for properties they acquire, according to the provisions of the law.

An overseas investor who is making plans to buy a villa in a premiere development held in a Thai organization need to cautiously remember the tax consequences or tax exposures of the purchase. The same applies to property deals that require the proprietor to take a shareholding in a organization

Information to avoid getting problems in Buying Condo’s in Thailand

Thailand’s land laws are undeniably restrictive to foreign possession except for condominium properties. The condominium Act of Thailand permits foreigners to purchase a condo property with a prescribed boundaries. however while purchasing a condominium is the very best way for a foreigner to own a property in Thailand, if they’re not cautious, they may fall into traps which they don’t see as coming.

Listed below are some of the traps condo shoppers would possibly fall into unknowingly:

  1. Failure to take into account taxes due for the condo. once in a while, the excitement that is going with a condo purchase could make a purchaser forget about to check the taxes due. In a few cases, customers fail to include this amount of their budget. The condominium taxes are expected to be over 6% of the acquisition fee and this ought to be paid before as the property is transferred and the ownership is registered at the land office.
  2. Failing to take the cost of maintenance and allocate a sinking fund while determining the budget for the condo purchase.
  3. Failing to do due diligence on the condominium property to ensure that the seller has the right to sell the condo. A title search is an extremely vital task that every customer should do.
  4. Failing to make sure that all the desired permits and licenses are complied with in line with government guidelines. that is to keep away from any trouble in the long run and may result in delays, task cancellation or substandard work.
  5. Failing to negotiate with the seller approximately who will be liable for the taxes and ensure that such are manifested inside the contract or settlement. If the provisions of the sale agreement do not specify the duty of tax charge, it’s far likely that the consumer will need to shoulder the tax due for the condo.
  6. Failing to ensure that the sales settlement is properly vetted and reviewed via a certified legal professional in Thailand to ensure that your interests as a client are protected. through asking someone who’s knowledgeable on this form of transaction, you are giving your self the opportunity to be clear and specific at the terms you may compromise with the vendor like charge of the taxes.
  7. Failing to double take a look at the surrounding real estate lots. before signing the sale agreement, it’s far important that the customer double check the surrounding of the property to make sure that there aren’t any obstructed views, or there are no restrictions on the zoning specifications for the condo area.

Through keeping these pitfalls in mind, a buyer can be able to avoid falling into these traps.

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.