Registering Foreign Business in Thailand

Foreign businessmen are welcome in Thailand. In reality, the Thai authorities is constantly encouraging overseas investment within the country through presenting a few incentives to people who qualify to function a business in Thailand under particular terms.

For lots foreigners who’ve no background in Thailand laws and regulations, they need to do some research at the available business registration alternatives in order to fully understand what a selected organization type entails in terms of registration, benefits, and so on. The best thing is to seek advice from business legal professionals based in Thailand so all the details can be explained in full. without the background knowledge, it will likely be normal to pay attention foreigners say that overseas business registration in Thailand is seemingly hard. The overseas company will have to be registered with the department of business development in Thailand.

but, with the proper guidance and recommendation, a foreign investor can effectively sign up a company consistent with the sort of company favored or suitable for the business. There are four types of groups a foreign investor can pick out from:

Thai limited company

this is the most famous form of Thai company preferred by using many foreign businessmen. on this type, the legal responsibility of the investor is limited to the amount of unpaid shares subscribed by them. This type calls for at the least three promoters who will file a memorandum of association, convene a statutory meeting and sign in a corporation. After registering the company, a tax identification card may be obtained by means of application.

Sole Proprietorships

no longer generally recommended for foreign investors, sole proprietorship gets the only proprietor exposed to unlimited legal responsibility of the business.

Partnerships

much like sole proprietorships, a partnership isn’t generally endorsed to foreign businessmen because of the liability exposure, identical as in sole proprietorships.

branch office

Foreign investors may additionally opt to operate their existing foreign corporation in Thailand as a branch office. another option is to set up a representative office, but this kind does no longer allow the consultant workplace to earn income in Thailand.

The Thailand foreign business Act BE2542 (1999) stipulates the conditions to be satisfied through the foreign investor with a view to be capable of register a organization and operate a business in Thailand. Provisions of the Thailand foreign business Act spell out the standards to meet to qualify as a foreigner, the kind of business allowed by using the Thai law to be operated by foreign traders, and so on. and they definitely outline what sort of business are disallowed for foreign groups to engage in.

Coordinating with Thai attorneys or maybe foreign attorneys who’ve been practicing in Thailand and is nicely-versed with Thai regulation and its language will help foreign businessmen ease up the procedure of business registration. searching out certified lawyers in Thailand is straightforward as long as the investor recognize the prerequisites of business registration and the qualifications of the legal professional or law company in order to assist their organisation.

Thailand Visa

How to Apply for Retirement Visa in Thailand

Thailand has been a popular destination for plenty foreigners looking for a place they can call their retirement home. Phuket’s superb views and ample stunning beaches had been the primary reasons for retirees to select the island as their retirement home.

But like other countries, foreigners need to obtain the right visa in order to be allowed to stay in Thailand legally.

Here are the requirements and procedures in applying and obtaining a retirement visa in Thailand.

 

  1. Obtain a One-Year Retirement Visa. To qualify for this visa, applicant must be 50 years old or older. Requirements that need to be complied with include passport (copies of each page duly signed), non-immigrant visa, departure card TM.6, proof of sufficient funds, Thai bank book (original) with at least 800,000 Baht or more, monthly income or pension at 65,000 Baht or a combination of both bank and monthly income/pension, letter from Thai Bank where account is maintained and three 4 x 5 cm full-face photo.
  2. Ship Your Household Items to Thailand. As Visa Benefits, Foreign retirees are given six months from date of entry to bring in the household stuff from the retiree’s country of origin, to Thailand tax free.
  3. Obtaining a Re-Entry Permit. “Extension of Stay” and Re-entry Permit” are two different visa variations, both of which will be needed by the retiree during his stay in Thailand. “Extension of Stay” the legality of your stay and everything else that go with a visa is dependent on this. A “Re-entry Permit” is dependent on the validity of the “Extension of Stay”. Any foreigner leaving Thailand without a “Re-entry Permit” will automatically have their visa canceled.
  4. Regular Reporting every 3 months. Retirees should need to report to their nearest Immigration Office every 90 days. If granted a long-term “Extension of Stay”. Those holding multiple entry visa need only to exit Thailand and renew their “Extension of Stay” after each 90 day entry.

 

Visa Approval

Upon approval of retirement visa, the retiree shall appear in person for the first and the last time at the Immigration office with the original passport to sign the visa paperwork in the presence of the Immigration officer or staff. Passport will then be stamped with the retirement visa at the time of approval which allows a retiree to stay in Thailand for a year without employment.

title deeds thailand

Four Types of Title Deeds in Thailand

A title deed on a land or property indicates someone’s rights to land (possession in case of a chanote title deed) and registered encumbrances which includes mortgages, leases, and so forth. foreign nationals aren’t allowed to own even a parcel of land and therefore have no right to be named owner of land in Thailand. however, they can be registered as the holder of certain rights like lease, habitation, mortgage, usufruct or superficies, and so on.

There are four distinct kinds of title deed in Thailand used as common evidence of land ownership, ownership rights and other interests on the land and it is important to understand correctly what every title deed covers or means.

Sor Kor Nung (certificates of possession)

This certificate recognizes that the individual is in possession of land but it does not mean that there are any rights associated with the possession. It isn’t transferrable but a person in possession might also transfer the physical ownership to every other individual and that individual need to apply for a brand new certificates of ownership. This is not recommended for foreign investors as they may have no rights to the land or property despite the fact that they paid for the certificates.

Nor Sor 3 Kor (showed certificates of Use)

this is a certificate confirming that the person’s name acting at the certificate has the confirmed right to use the land implying that each one requirements needed for the title deed issuance were complied with and that it is pending with the Land department. Land with a Nor Sor 3 Kor title deed may be sold, leased, used as a loan collateral, etc. and the holder of this certificate cannot leave the land unattended for greater than 12 years.

Chanote (title Deed)

that is a certificate for land ownership. a person with their name shown at the title deed has the legal right to the land, and might use it as proof to verify the right to government authorities. This identify deed suggests the official government land survey points setting the legal obstacles of the land. this is the most secure type of land title and Thailand’s Land department is aiming at covering all land within the country under this title deed.

Nor Sor Sam (certificates of Use)

This differs from Nor Sor 3 Kor in terms of not complying or performing the formalities to certify the right to use. A notice of intent must be published earlier than a transfer can be made and 30 days public notice is required earlier than any change of status over the land can be registered.

It is a secure practice to always ask the legal professional to check the back and front end of the property title deed so that you can see who the current proprietor is; the shape, area and orientation of the property; border to a public property along with a street, ocean or stream; and if the property has endorsements or liens. A title deed should be clean of any preceding obligations or encumbrances. otherwise the transaction have to now not push through.

To be safe, it is continually recommended to seek expert help for plans of acquiring a piece of parcel or for plans of having rights in a piece of land. A financial investment in this form of asset is pretty a venture and there are rules established by the respective government of a chosen country.

Finding English Speaking Lawyers in Phuket

Thailand is one country in Asia that is bent in selling the country to attract foreign investment. while keeping their nationalistic stance, the government of Thailand has promulgated a few legislative acts advancing the interests of overseas investors thru the provision of tax incentives / relief for overseas corporations running in Thailand and satisfying the prescribed requirements. The legal framework of the laws protecting such provisions is, of course, handled for the Phuket-primarily based foreign investors by using English-speaking Phuket legal professionals.

The country is a completely popular tourism destination for lots individuals and Europeans. And tourism arrival statistics have it that a variety of them return to Thailand for a second, third visit and so forth. they have grown to like Thailand so much that so as to live longer, or permanently, if viable, they bring in an awesome quantity of investment to begin a business in Phuket, Bangkok, or inside the other areas inside the country. at the same time as putting in a business in Thailand is quite straightforward, the need to visit attorneys in Phuket will show beneficial while seeking ways to avail of the incentives provided through the government to foreign companies making use of through the Board of investment or BOI. And because the foreign investor has to recognize the laws and its scope, a Phuket law firm with English-talking Thai attorneys will provide the communication channel to translate provisions of the Thai legal guidelines in the language understood by using the foreign investor, which is English.

English-speaking lawyers may also be capable of help overseas businessmen as they deal with foreign employees’ visa and work permit requirements, rent of properties for the business and for personal accommodations, discussing joint venture terms and conditions with neighborhood Thai partners, and many more. The needs surface as the business progresses.

Overseas traders or businessmen can even need someone to represent them when dealing with government corporations just like the BOI, Land office, etc. And the best party to do this is the Phuket law firm engaged by the foreign organization. most of the communications and correspondences with the government agencies are written in Thai language. There also are documents required by way of the Thai government to be submitted to certain government departments in local Thai language as well. without English-speaking legal professionals in Phuket to assist the foreign businessmen to understand the communication or correspondence, it will be hard to perform the enterprise.

Additionaly, the English-speaking lawyers might be able to offer the foreign traders sound commercial enterprise recommendation, which follow the provisions of Thai legal guidelines as they have a higher grasp of what the laws encompass. And in an unfortunate situation where the foreign businessman has to face litigation because of disputes on partnership or shareholder settlement, being in a Thai courtroom is unnerving. With a capable litigation attorney who can accurately provide an explanation for the lawsuits to the foreigner, the scenario will become much less scary. The maximum frightening part isn’t understanding what goes on the whole time. Having legal professionals who are not simply competent but who can cross beyond the language barrier can be the subsequent high-quality choice a foreigner can make at the same time as in Phuket, Thailand.

property value

Measuring Real Value of Properties in Phuket

Owning a property, a parcel of land, a condo unit or a residential house requires a complicated web of registration with the Land office, which can be part of the legal services Phuket law firms offer. All ownerships may be legally transferred through a written registration at the local Land office. along with such registration are fees and taxes which are needed to be paid upon registration of the property which is the challenge of change of ownership. fees and taxes include transfer fee, income tax payable as withholding tax, stamp duty or precise business tax or local development tax.The registration process as handled through real estate lawyers in Phuket, calls for that the transfer fee and the seller’s income withholding tax are to be deducted and paid to the authorities upon transfer. those charges and taxes are calculated primarily based on the Land workplace’s valuation of the property.

On the other hand, the stamp duty or specific business tax or local development tax will also be deducted and paid to the authorities upon transfer. each stamp duty and tax are calculated based totally at the official value of the property or the actual transaction cost of the property, whichever is higher.

Consequently, due to the fact the Land office’s appraised cost of the property is one of the key factors used for the calculation of the fee and taxes applicable to and payable upon the registration of possession of immovable assets, you may want to know greater approximately this official value.

For this purpose the official value – an assessed or appraised cost for an immovable property is periodically generated by way of the Valuation Committee pursuant to section 105 of the Land Code or LC. And for the reason that official value turns into the basis for the calculation of the various fees and taxes paid to the authorities upon transfer of ownership of the property, it is crucial to understand how the property’s official value is measured or generated.

Phuket lawyers will need to explain to their clients that pursuant to chapter 2 of the Valuation Committee’s rules for determining the standards and procedures for Valuating Immovable properties for the purposes of Levying fees for the Registration of Rights and Juristic Acts (1992) (and as amended in 1998) issued under the Land Code, the criteria taken into account by using the Valuation Committee in determining the reliable cost of an immovable property are:

  1. Construction Material Costs
  2. Salaries and wages of the construction workers involved within the production of the property
  3. Local Construction Administration Fees
  4. Building Type Purpose.

Official fee for non-condo buildings in each province in Thailand varies. as soon as the professional Values in any particular region or province are announced, they may be applicable to all such buildings no matter the property’s location. The appraised price per square meter of a property in Karon could be the same even for the most undeveloped part of Phuket. In general, the appraised value ought to be re-evaluated every other 4 years.

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.

Getting Married Legally in Thailand for Foreigners

Love transcends all language, distance, even age. Foreigners coming to Thailand and falling in love with a local Thai is not at all that uncommon. There are some legal things that expatriates need to bear in mind when they decide to tie the knot with a local. There could also be some practices that are dictated by local traditions that should also be kept into consideration.

Who’s Eligible for Marriage?
Local laws dictate the following requirements for being eligible to get married, for both parties:

  • They must be at least 17 years of age.
  • They must not have any blood relations or relationships through adoptive parents.
  • Both parties must not be in a married state.
  • For parties with deceased spouses, 310 days must have elapsed since the death of the previous wife or husband.
  • The same waiting period is applicable for parties who had previous marriages that had been terminated.
  • The waiting period can be shortened if there are no children born out of the previous marriage, or if the woman can prove that there was no pregnancy initiated before the termination of marriage or death of the husband.
  • If they wish to marry before the waiting period has lapsed, the woman has to obtain legal permission from the Court to marry.
  • If you meet all of those requirements above, then congratulations!. You and your fiancee can now be married in Thailand.

Documents Required

Before you can marry, you’ll have to accomplish several documentary requirements. Both of you need to affix copies of your identification cards, or a copy of the passport for the foreigner. The expatriate should also furnish an affidavit from his embassy that he has not been in a marriage before or, if such marriage exists, it has been duly terminated by a Court of law at home. These affidavits must be translated into Thai by accredited foreign language translators.

During the marriage ceremony, the couple must have at least two witnesses that will attest that you and your fiancee have professed marriage vows to one another before a duly authorized minister.

Registration

In order for the marriage to be valid and recognized under Thai law, the final step in getting married is to get it duly registered with the Register of Thailand. To do this, parties have to accomplish an application form and submit it together with several other documents to the any District Office or Minor District Office in the Kingdom.

Once the consent officer in the Register affixes his or her signature, the marriage is considered binding and legal under the Kingdomís laws.

Since marriage involves a change of name, married ladies should take the steps to change her family name to reflect the change in the marriage registration. She has 60 days to secure a new identification card to represent herself in her new civil status.

Marriage is but a beautiful thing. All the more reason that couples, both locals and Thais, should always take the steps to make their marriage legal, so they can both have full protection of the law.

Want more articles like this? Check our Legal News Blog site.

Documents needed for Acquiring Land in Thailand

Thai law has a few exceptions that can allow a foreign national to purchase a piece of land in the country. One of these exceptions is when a person has infused an investment of THB40 million, at the least, into the country’s economy by, among other ways, investing in a business in the Kingdom.

Let us say that somebody, maybe a friend of yours or a business associate, has met the qualifications under Thai law that will allow him or her to purchase land legally under his or her name in Thailand. How does that qualified individual go about legally acquiring real estate in the Kingdom? What does he or she need to prepare?

Requisite Documents to Apply for Land Acquisition as a Foreign National

In order to receive permission from the appropriate government agency, a qualified foreign national will have to prepare the following documents:

  • Documents for identification including, but not limited to, the foreignerís passport, an alien identification card issued by local police agencies, or a certificate of residency if the foreigner is a permanent resident of Thailand.
  • A duly-filled Alien 4 form
  • Documents that attest to the foreignerís investment in the country, including certificates of stock, bonds, or mutual funds.
  • Letters of confirmation from the Ministry of Defense and the Provincial Officer as to the status of the real estate that the foreigner is interested in acquiring.
  • These documents must then be submitted for the application process to commence. The applicant will then receive ample notification from the government should the application be approved.
  • Limitations Imposed on Foreigners Who Own Land in Thailand
  • Once a foreigner receives government approval to acquire real estate in Thailand, he or she must put the property to use right away.

Thai law requires these individuals to be able to utilize their new property in a residential capacity within the next two years immediately after the approval and registration of the acquisition. Apparently, these foreigners are disallowed from using the land in a commercial application.

They also need to continue their investment within the next five years. This rule is to prevent people from putting in the requisite amount as an investment in Thai financial instruments just to gain approval for land acquisition, and then withdrawing it afterwards. Should a withdrawal be imminent, investors are required to notify the government within the next 60 days after pulling back on the investment.

Thai law is very clear and specific about what it expects from foreign investors, and what perks they can give to those that make a significant investment in the local economy. However, youíd still need the help of a qualified legal advisor to save you from possible legal hurdles when it comes to investing in Thailand. For instance, the legal advisor should be fluent both in English and Thai to make sure that there are no misunderstandings along the way.

Feel free to contact HWAL if you have any inquiries about investing, property management and real estate acquisition in Thailand.

How To Acquire residency in Thailand thru Employment

Aside from marriage to a Thai national, employment in Thailand is likely to be the most common grounds for a foreigner to be granted permanent resident status. Therefore, this subject is worth addressing in some detail. As with all permanent residency applicants, a person applying on the grounds of employment must satisfy the generally applicable requirements which were discussed in an earlier article (ìThailand Permanent Residency: An Overview). The legal minimum salary required for eligibility is 50,000 baht. However, there are two separate standards applied to applicants who make a minimum of 50,000 baht per month and applicants who make at least 80,000 baht per month. The requirements for an applicant who makes at least 50,000 baht per month, but not more than 80,000 baht, is as follows:

  1. The company that employs the applicant must have a registered capital of at least 10 million baht.
  2. The applicant must have been registered as a company director with signing authority for at least one year prior to the submission of the permanent residency application.
  3. The applicant must earn a salary of at least 50,000 baht per month for at least two consecutive years prior to the submission of the application and must present evidence of proper tax filings.
  4. The business of the applicantís company must be one of the following types:
  5. A company engaged in international commerce which has earned at least an average of 20,000,000 baht in foreign currency during the past three years from export sales. Evidence of this must be presented in the form of a letter issued by a commercial bank.
  6. A company which provides loans to domestic manufacturing companies and which has brought in at least 100,000,000 baht in foreign currency into the country within the past three years.
  7. A tourism company which has brought in at least 5,000 tourists on average. A certified letter from the relevant
  8. Thai governmental authority must provided as evidence.
  9. Any other type of business in which the applicant is a shareholder of at least 5,000,000 baht worth of shares fully paid-in. The applicant must have held those shares for at least two years prior to the date of submission. As it can be seen, the aforementioned requirements are particularly stringent.

However, the standard applied to foreigners who make at least 80,000 baht is quite easier and this may be a more realistic option. The requirements are as follows:

  • The applicant must have held a Thai Work Permit for at least three consecutive years prior to the submission of the application.
  • The applicant must have been employed at his or her current company for at least one year prior to the submission of the application.
  • The applicant must have earned at least 80,000 baht per month for at least two years prior to the submission of the application or must have paid at least 100,000 baht in personal income taxes within two years prior to the date of submission.

The application for permanent residency status can be a daunting task and involves a complex government bureaucracy. Therefore, it is advisable that all interested persons retain the services of an experienced lawyer like HWAL when applying for permanent residency.

How can your startup hire a quality lawyer

Starting a new venture can be exciting and challenging. It is important that you hire a lawyer too as all companies, irrespective of their size needs legal representation. When you start your business, you will find that you need legal guidance at every step and at different phases of the business life, from the initial incorporation to raising capital for expansion to hiring employees, you need the services of a good lawyer. It goes without saying that most businessmen cannot handle the legal matters in a way that professional and competent lawyers can.

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