Foreign Business Approvals from BOI

Thailand gives all the factors a foreign investor would look for ñ inexpensive and hardworking personnel, an emerging bullish economy, a burgeoning domestic marketplace and a supportive government in terms of economic liberalization and growth.

The driving force in the back of Thailandís extraordinary economic growth is overseas investment with the government supporting and inspiring foreign traders from Japan, Singapore, Europe, usa, Hong Kong and Taiwan. Japan is currently the biggest stakeholder in overseas funding in Thailand. And at the same time as the country offers drastically favorable conditions to entice foreign traders inside the country, the major setback is the countryís policy on majority foreign possession that is constrained to 49%, giving away the majority possession of 51% to nearby Thai nationals. additionally, foreigners want to have Board of investment (BOI) promoting for his or her business activities in Thailand.

Regardless of the restrictions, a lot of overseas investors have shown interest in operating business in Thailand, endorsed by the countryís promise of an amazing business placing that will be useful to both the investors and Thailandís economy. And with overseas investment coming in, foreign investors want to have preliminary consultations with either an accounting company or law firm in Phuket to apprehend the situations, guidelines, rules and laws, surrounding the formation of a company in Thailand. investors need to get familiar with positive BOI rules covering their privileges if satisfying the standards for BOI promotional activities. company registration Phuket style might also sound easy, but in reality has loads of documentation compliance.

The BOI is mandated by way of the government because the most important government agency for encouraging investment. they are tasked with devising and implementing techniques under which promotional activities are organized. The approval of foreign business activities in Thailand comes from the BOI. They, collectively with the Ministry of commerce are tasked to offer the approval for foreign investment applications under the BOI promotional activities.

Additionally, the BOI has the power, exercised on a case through case basis, to supply financial and other promotional incentives to Thai registered companies that may consist of the following rights: majority foreign possession; possession of land and homes; exemption from import duty on imported raw materials and machinery used inside the promoted business; and exemption from corporate income tax for up to eight years.

BOI criteria for undertaking Approval

For projects with funding capital no longer exceeding Baht 500 million (except the cost of land and running capital), the subsequent standards are used:

the fee brought is not less than 20% of income revenue, besides tasks that manufacture electronic products and parts or processed agricultural produce, and projects granted unique approval by the Board;
ratio of liabilities to registered capital have to now not exceed 3 to 1 for a newly set up project. growth projects are considered on a case by means of case basis.
a promoted project will be required to use current machinery and production strategies. In cases in which old equipment may be used, its efficiency should be licensed through reliable institutions and should attain the Board approval; adequate environmental protection systems are installed.
For projects with investment capital (except for the cost of land and running capital) over Baht 500 million, a feasibility study for the project, as prescribed with the aid of the Board, must be submitted.
as long as the foreign investors follow the standards, rules and rules set out through the BOI pertinent to ownership requirement, monetary requirement, etc., and as long as the promotional activities are deemed sound and financially benefitting the country and its economy, BOI approval can be granted truly.

Thailand Visa

Difference Between Non-Immigrant Visas

There are sorts of Non-Immigrant Visa issued to foreigners who need to live within the kingdom – Non-Immigrant Visa “B”, and Non-Immigrant Visa “O”. For better knowledge on how to process and work the visa application process, you may seek advice from an immigration lawyer in Phuket for better procedure guidance.

the following describes each visa elegance or class:

Non-Immigrant Visa “O”

This sort of visa is issued to foreigners seeking to live in Thailand for an extended time period. Strictly speaking, this Non-Immigrant Visa “O” may be obtained by every person despite the fact that the maximum likely individual to acquire this visa class is a partner of a holder of a Thai Non-Immigrant business “B” visa. The “O” visa of the partner could be primarily based upon the other spouse’s “B” visa. With the Visa “O”, the holder may also or won’t be able to acquire work permit in Thailand. In widespread, best the ones in Thailand keeping Non-Immigrant Visa “O” primarily based upon marriage to a Thai “B” visa holder can be entitled to acquire a work permit.

How the Visa Works

This Visa “O” is available as a single entry with 90 days validity or a multiple access with one year validity.

The single entry visa lets in the traveller to spend not greater than 90 days inside Thailand although this will be extended for an extra 30 days via visiting an immigration office.
The multiple entry visa with 12 months period permits the individual to depart and re-enter Thailand in a vast number of instances inside the 365 days validity duration. Visa holders who depart and re-enter Thailand earlier than the cease of the 90 days period will get hold of a stamp on their passport permitting them to live in Thailand for some other ninety days. Extension of this ninety day stamp is possible by means of travelling an immigration workplace wherein visa might be given a 30 days extension.
once the duration of stay is up, the visa holder will need to leave Thailand. A common practice although is to cross the border and turn right around and re-enter the country after an hour or , to get hold of a new 90 days stamp again on the passport.

Non-Immigrant Visa “B” (for enterprise and work)

This visa is issued to foreigners who desire to work or conduct business in Thailand. Foreigners who adopt investment activities in the kingdom could be issued a Non-Immigrant Visa “B”. under this Visa class, other categories of Non-Immigrant Visa B are provided to satisfy the needs and qualifications of individual business persons – business Visa class B; business-approved Visa category B-A and investment and business Visa category 1B. Visa holders of this category need to be granted work permit earlier than starting work. it is available as single access with ninety days duration and a couple of access with 365 days length.

A Non-Immigrant Visa ‘B’ works in exactly the equal way (in terms of leaving and reentering Thailand every 90 days, up to the twelve months visa validity duration) as Non-Immigrant Visa ‘O’ with one exception. The Visa “B” may be a commercial enterprise visa or work visa, that is a prerequisite to acquiring a work allow in Thailand.

Alien or Foreign Employment, working Act of Thailand

Thai Law Garuda emblem

BHUMIBOL ADULYADEJ, REX.

Given on the 8th Day of July B.E. 2521,

Being the 33rdYear of the Present Reign.

His Majesty King Bhumibol Adulyadej is graciously pleased to proclaim that:

Whereas it is expedient to revise the law on working of aliens;

Be it, therefore, enacted by the King, by a, Part nd with the advice and consent of the National Legislative Assembly as follows:

Section 1. This Act is called the “Working of Aliens Act, B.E. 2521.”

Section 2. This Act shall come into force as from the day following the date of its publication in the Government Gazette.*

Section 3. The Announcement of the National Executive Council No. 322, dated 13th December B.E. 2515 shall be repealed.

Section 4. This Act does not apply to performance of specific duty by aliens in the Kingdom in the following capacities:

(1) as members of a diplomatic mission;

(2) as members of a consular mission;

(3) as representatives of member countries and officials of the United Nations and specialized institutions;

(4) as personal servants coming from foreign countries to work regularly for persons in (1) or (2) or (3);

(5) as persons who perform duty or mission under an agreement concluded between the Government of Thailand and foreign Governments or international organizations;

(6) as persons who perform duty or mission for the benefit of education, culture, art, sports or other activities as may be prescribed by the Royal Decree;

(7) as persons permitted by the Government of Thailand to enter and perform any duty or mission.

______________

*Published in the Government Gazette Vol. 95, Part 73, Special Issue, dated

21stJuly B.E. 2521 (1978)

Section 5. In this Act, “alien” means a natural person who is not of Thai nationality;

“work” means engaging in work by exerting energy or using knowledge whether or not in consideration of wages or other benefit;

“permit” means a work permit;

“holder of permit” means an alien who has been granted a permit;

“Committee” means the Committee Considering Working of Aliens;

“competent official” means person appointed by the Minister for the execution of this Act;

“Registrar” means person appointed by the Minister as Registrar of working of aliens;

“Director-General” means the Director-General of the Labour Department;

“Minister” means the Minister having charge and control of the execution of this Act.

Section 6. Subject to section 12, any work which an alien is prohibited to engage in any locality and at any particular time and whether subject to absolute or conditional prohibition, and to any extent shall be prescribed by the Royal Decree.

Section 7. Subject to section 10, an alien may engage in any work which is not prohibited by the Royal Decree issued under section 6 only upon receipt of a permit from the Director-General or official entrusted by the Director-General except an alien who is permitted to enter the Kingdom for temporary stay under the law on immigration in order to engage in the work which is of necessity and urgency for period not longer than fifteen days, but such alien may engage in the work after he has notified the Director-General or official entrusted by the Director-General in writing in the forms prescribed by the Director-General.

Section 8. Subject to the law on immigration, any person wishing to employ an alien in his business in the Kingdom may submit an application on behalf of the alien to the Director-General or official entrusted by the Director-General. The Director-General or official entrusted by the Director-General may issue permit to an alien under paragraph one only after the entry into the Kingdom of such alien.

Section 9. In granting a permit to alien under section 7 and section 8, the Director-General or official entrusted by the Director-General may prescribe any condition therein for the alien to comply therewith. In such case, the alien is required to give assurances that he would comply with such conditions and in the case under section 8, such alien shall give assurances prior to his entry into the Kingdom.

Section 10. An alien who has been permitted entry to work in the Kingdom under the law on promotion of investment or other laws shall apply for a permit with the Director-General or official entrusted by the Director-General within thirty days from the date of his entry into the Kingdom, but if such alien is already in the Kingdom, the period of thirty days shall begin as from the day he is aware that he has been granted permission to work under the law on promotion of investment or other laws. Pending the issue of permit, the applicant shall be allowed to engage in such work. Upon receipt of application, the Director-General or official entrusted by the Director-General shall issue a permit without delay.

Section 11. An alien who may apply for a permit under section 7 must possess the following qualifications:
F(1) having a place of residence in the Kingdom or having been permitted entry into the Kingdom for temporary stay under the law on immigration but not as tourist or in transit;
(2) not being disqualified or prohibited under the conditions prescribed by the Minister as published in the Government Gazette.

Section 12. The following aliens may engage in only such works which have been prescribed by the Minister as published in the Government Gazette. In such Notification, the Minister may prescribe any condition as he may deem appropriate:

(1) aliens under a deportation order under the law on deportation who have been permitted to engage in profession at a place in lieu of deportation or while awaiting deportation;

(2) aliens whose entries into the Kingdom have not been permitted under the law on immigration and are awaiting deportation;

(3) aliens who are born within the Kingdom but have not acquired Thai nationality under the Announcement of the National Executive Council No. 337, dated 13th December B.E. 2515 or under other laws;

(4)aliens whose Thai nationality has been revoked under the Announcement of the National Executive Council No. 337, dated 13th December B.E. 2515 or under other laws.

An alien may engage in such works as prescribed by the Minister under paragraph one only upon receipt of a permit from the Director-General or official entrusted by the Director-General.

Section 13. Permits issued under this Act shall be valid for one year from the date of issue except:

(1) the permit issued to an alien under section 10 shall be valid for such period which he has been permitted to work under such laws;

(2) the permit issued to an alien under section 12 shall be valid for the period prescribed by the Director-General or official entrusted by the Director-General which must not exceed one year from the date of issue;

(3) the permit issued to an alien who has been permitted entry into the Kingdom for temporary stay under the law on immigration shall be valid for such period which he has been permitted to stay in the Kingdom at the time of the issue of the permit;

(4) the permit issued to an alien who has been permitted entry into the Kingdom for temporary stay under the law on immigration without definite period shall be valid for thirty days from the date of issue.

Section 14. In the case a holder of permit which is issued under section 10 has received extension of working period under such laws, the holder thereof shall notify the Registrar within thirty days from the date of receiving extension and the Registrar shall record such extension in the permit.

Section 15. Before a permit is expired and if the holder of permit wishes to continue working, he shall apply for a renewal of the permit with the Registrar prior to the expiration thereof. In such case, the applicant for renewal of the permit may continue working until the Registrar issues an order refusing the renewal of the permit. Each renewal of permit shall be valid for one year, except

(1) the renewal of permit under section 13 (3) shall be valid for the period not more than the extension which the holder has been permitted to stay in the Kingdom;

(2) the renewal of permit under section 13 (4) shall be valid for thirty days each time unless such alien has been permitted to stay in the Kingdom under the law on immigration for a definite period which is longer than thirty days in which case the renewal of permit shall be for such period which he has been permitted to stay in the Kingdom, but not longer than one year.

Section 16. The Minister has the power to issue Ministerial Regulations prescribing forms, rules and procedures in the following cases:

(1) application for and issue of permit under section7, section 8, section10 and section 12;

(2) application for renewal and renewal of permit under section 15;

(3) application for and issue of permit substitute under section 19;

(4) application for and issue of permission to change work or locality or place of work under section 21;

(5) issue of identity card under section 31.

Section 17. In the case of refusing to issue a permit or not granting permission under section7, section 8, section 10, section12 or refusing to renew the permit under section 15 or not granting permission to change the work or locality or place of work under section 21, the applicant has the right to appeal to the Minister by submitting a written appeal to the Director-General or official entrusted by the Director-General or the Registrar, as the case may be, within thirty days from the date of the knowledge of the order of refusal. Upon receipt of the appeal, it shall be referred to the Committee within fifteen days and the Committee shall then consider and submit its opinion to the Minister within fifteen days and the Minister shall complete his consideration of the appeal within thirty days. The decision of the Minister shall be final. In the case of an appeal against an order refusing the renewal of a permit under section 15 as mentioned in paragraph one, the appellant has the right to continue working until the Minister decides on the appeal.

Section 18. A holder of permit must keep the permit on himself or at the place of work during work in order that it may be readily shown to competent official or Registrar.

Section 19. If a permit is materially damaged or lost, holder of the permit shall apply for a substitute with the Registrar within fifteen days from the date of the Knowledge of such damage or loss.

Section 20. In the case an alien resigns from work which is specified in the permit, he shall return the permit to the Registrar of Changwat where the place of work is situated within seven days from the date of his resignation.

Section 21. A holder of permit shall not engage in the work other than that which is specified in the permit or change locality or place of work from that which is specified in the permit unless a permission is obtained from the Registrar.

Section 22. No person shall employ an alien who has no permit nor employ him in the work which is of different description or condition from that specified in the permit.

Section 23. Any person who employs an alien, or transfers an alien to work in a locality other than that which is specified in the permit, or has an alien resigning from his employment, shall notify the Registrar within fifteen days from the date of employment, transfer or resignation. The notice under paragraph one shall be in the form prescribed by the Director-General.

Section 24. There shall be a committee called the “Committee Considering Alien’s Work” consisting of the Permanent-Secretary for Interior or person entrusted by the Permanent-Secretary for Interior as Chairman, a representative of the Ministry of Foreign Affairs, a representative of the Ministry of Industry, a representative of the Department of Local Administration, a representative of the Police Department, a representative of the Department of Social Welfare, a representative of the Department of Public Prosecution, a representative of the Department of Trade egistration, a representative of the Department of Internal Trade, a representative of the office of the Board of Investment, a representative of the office of the National Economic and Social Development Board, and not more than three other persons appointed by the Minister as ommittee members and a representative of the Labour Department as member and secretary.

Section 25. Members appointed by the Minister hold office for a term of two years and may be re-appointed.

Section 26. Members appointed by the Minister vacate office prior to the end of term upon:

(1) death;

(2) resignation;

(3) removal by the Minister.

In the case members are appointed during the term of members already appointed, notwithstanding it is a new or additional appointment, the appointees shall hold office only for the remaining terms of the members already appointed.

Section 27. The Committee has the duty to consider, give recommendation or advice to the Minister as follows:

(1) the issue of Royal Decrees under section 4 (6) and section 6;

(2) prescription of work which the Minister may publish under section 12;

(3) the issue of Ministerial Regulations under section 16;

(4) consideration of appeal of order under section 17;

(5) other matters as entrusted by the Minister.

Section 28. At a meeting, the presence of not less than one-half of all the members shall constitute a quorum. If the Chairman does not attend or is unable to perform his duty, the members present shall elect one among themselves to preside over the meeting. The decision of the meeting shall be made by majority of votes. Each member shall have one vote; and in case of an equality of votes, the person presiding over the meeting shall have an additional vote as casting vote.

Section 29. The Committee has the power to appoint a sub-committee to carry out any activity or consider any matter within the scope of duty of the Committee. The provisions of section 28 shall apply to the meeting of a sub-committee mutatis mutandis.

Section 30. In performing the duties under this Act, the Director-General or official entrusted by the Director-General, Registrar or competent official is empowered to:

(1) issue a written inquiry or summon any person to provide facts as well as to require him to produce any document or evidence; enter any premises during the period which is believed to be the working period under a reasonable belief that an alien is working there in order to ensure compliance with this Act. For this purpose, he is empowered to inquire into facts or request production of any document or evidence from the person who is responsible for or connected with such place. In performing the duty under (2) , the owner or occupant of such premises or person who is responsible for or connected with the said premises shall render appropriate facilities.

Section 31. The Registrar and competent official must have identity cards. In the performance of duty, the Registrar and competent official must produce their identity cards upon request of the person concerned.

Section 32. In performing the duties under this Act, the Director-General or official entrusted by the Director-General, Registrar or competent official shall be an official under the Criminal Code.

Section 33. Any alien who is working in violation of the Royal Decree issued under section 6 shall be liable to imprisonment for a term not exceeding five years or to a fine from two thousand Baht to one hundred thousand Baht or to both.

Section 34. Any alien who is working in violation of section 7 or in violation of the conditions specified under section 9 or works without a permit or in violation of the conditions prescribed by the Minister under section 12 shall be liable to imprisonment for a term not exceeding three months or to a fine not exceeding five thousand Baht or to both.

Section 35. Any alien who is working in violation of section 10, section 18 or section 20 shall be liable to a fine not exceeding one thousand Baht.

Section 36. Any holder of permit who fails to comply with section 14 or section 19 shall be liable to a fine not exceeding five hundred Baht.

Section 37. Any alien who continues working after his permit has expired without applying for a renewal before the expiration thereof or has applied for a renewal but the Registrar has issued an order refusing the renewal of the permit under section 15 and such alien has not appealed the order of the Registrar, or if he has appealed but the Minister has decided not to grant renewal of the permit under section 17 shall be liable to imprisonment for a term not exceeding three months or to a fine not exceeding five thousand Baht or to both.

Section 38. Any holder of a permit who violates section 21 shall be liable to imprisonment for a term not exceeding one month or to a fine not exceeding two thousand Baht or to both.

Section 39. Any person who employs an alien in violation of section 22 shall be liable to imprisonment for a term not exceeding three years or to a fine not exceeding sixty thousand Baht or to both.

Section 40. Any person who violates section 23 or section 42 shall be liable to a fine not exceeding one thousand Baht.

Section 41. Any person who fails to comply with a written inquiry or summons or refuses to provide facts or furnish document or evidence, or obstructs or fails to render facilities to the Director-General or official entrusted by the Director-General, or the Registrar or competent official in the performance of their duties under section 30 shall be liable to a fine not exceeding three thousand Baht.

Section 42. Any person who employs an alien in his business prior to the date the Announcement of the National Executive Council No. 322, dated 13th December B.E. 2515 comes into force and has not, up to the date this Act comes into force, submitted particulars concerning aliens in his employment under Clause 35 of the said Announcement, shall submit the said particulars in the form prescribed by the Director-General within forty-five days from the date this Act comes into force.

Section 43. A Permit issued under the Announcement of the National Executive Council No. 322, dated 13th December B.E. 2515 shall continue to be valid as long as it has not expired and the holder of permit continues to engage in the work for which he has been granted the permit.

Section 44. An alien who has a place of residence in the Kingdom under the law on immigration and is working prior to the date the Announcement of the National Executive Council No. 322, dated 13th December B.E. 2515 comes into force and has applied for a permit with the Director-General or official entrusted by the Director-General under Clause 34 paragraph one of the said Announcement and the Director-General or official entrusted by the Director-General has issued the permit which has not been collected by the alien who is still working on the date this Act comes into force, shall collect the permit within sixty days from the date this Act comes into force, otherwise such permit will be regarded as having expired at the end of the said period.

Section 45. An alien under section 12 who is engaging in any work on the date this Act comes into force may continue in such work until there is a Notification of the Minister under section 12 After the Minister has issued a Notification under section 12, in the case the work which an alien is engaging is permitted under the Notification of the Minister, such alien may continue in such work but must apply for a permit within ninety days from the date the Notification of the Minister comes into force. In the case the work which an alien is engaging is prohibited under the Notification of the Minister, such alien may continue in such work for one hundred and eighty days from the date this Act comes into force.

Section 46. All the Royal Decrees, Ministerial Regulations and Notifications or Orders of the Minister or the Director-General or permits which have been issued or given by virtue of the Announcement of the National Executive Council No. 322, dated 13th December B.E. 2515 insofar as they are not contrary to or inconsistent with this Act shall remain in force and shall be regarded as the Royal Decrees, Ministerial Regulations and Notifications or Orders of the Minister or the Director-General, or permits issued under this Act.

Section 47. The Minister of Interior shall have charge and control of the execution of this Act and shall have the power to appoint the Registrar and competent officials and issue Ministerial Regulations prescribing fees not in excess of the rates attached hereto, granting exemption of fees and prescribing other activities for the execution of this Act. Ministerial Regulations shall come into force after their publication in the Government Gazette.

retirement visa phuket

Retirement Visa Penalty and Precautions

Thailand has been a famous choice amongst many foreigners of retirement age as their second home or retirement country. Thailand has all the amenities for a retirement haven to many foreigners who flock to the country to go to and after their exceptional holiday within the kingdom will decide to make Thailand a permanent second home. The country’s warm weather and a selection of first rate landscape and delightful retirement places unfold throughout the country are a number of the reasons foreign retirees determine to retire in Thailand.

Retirement places can variety from cool, mountainous terrain, pristine beaches or the cosmopolitan metropolis way of life. communication centers, transportation system, medical and health facilities are of worldwide standards so foreigners don’t have to worry about staying in Thailand for a long time. if you need to use for a retirement visa in Thailand, right here’s how.

For you to stay in Thailand for a long time, foreigners both apply for a retirement visa or the non-immigrant visa (O-A) that’s the visa for retirees who will now not work or engage in business in Thailand however would like to live for an extended duration. Validity of this visa is three hundred and sixty five days however it can be renewed each year for an indefinite time frame.

To hold this O-A visa, the retiree is required to report to an immigration officer before the end of a ninety-day stay as a way to inform of the retiree’s current address and get in touch with numbers. This notification will also be carried out by means of mail, via filing a few files and forms to the office of the Immigration Bureau. This manner is done every 90 days. you may also consult an immigration attorney for help.

Failure to examine the requirements of Immigration law pertinent to retirement or O-A non-immigrant visa may also end result to some penalties or cancellation of the visa being held.

Some of the situations that violate retirement visa laws include:

  • The notification to the Immigration Officer every 90 days must be made within 7 days before or after the 90 day stay period expires. A fine of Baht 2,000.00 will be imposed for failing to report on time.
  • If retiree moves to another address during the 90 day period, the retiree should notify the Immigration Bureau of the change in address within 24 hours after the move is made. Failure to do so will result to facing a fine of Baht 5,000.00.
  • If notifying by post or mail, the relevant documents must be sent by registered mail 7 days before the renewal date. Renewal documents cannot be processed if it’s past the 90 day limit. The retiree should go to nearest immigration office to pay the fine of Baht 2,000.00.
  • Leaving Thailand without a re-entry permit to be presented upon re-entering Thailand will result to visa cancellation and must leave Thailand within 30 days.
  • Overstaying or not departing Thailand prior to expiration of visa O-A. Overstaying visa holders will be fined Baht 500.00 per day up to a maximum of Baht 20,000.00.
  • Overstaying for more than 20 days may result to possible jail time, deportation and being blacklisted in Thailand.

Retirement visa application and renewal could be an less difficult task if you are properly guided with the aid of an immigration legal professional who has been in practice for years. in case you are looking for an immigration attorney in Phuket, we are able to help out.

 

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.