Answers about investment, business, visa and permit in Thailand
Frequently Asked Questions Regarding Investments In Thailand
How can a foreign investor set up a business in Thailand?
Under Thai law, there is a range of structures available. These include:
- Sole proprietorship;
- Partnership;
- Representative or branch office;
- Private limited company;
- Public limited company.
After reviewing the details of your proposed investment, EUROPEAN LAW will determine which structure best suits your plans.
How long does it take to set up a private limited company?
Approximately three weeks will suffice in most cases, inclusive of
tax registration.
Is there a minimum shareholder requirement?
A limited company must have a minimum of seven registered shareholders.
What are the implications of new rules concerning companies that
have foreign directors or shareholders?
Regulations which came into force in August 2006 require that documents
be submitted at the time of a company’s incorporation demonstrating
that the Thai shareholders in any such company have the ability to
fund their investment.
Please describe the options a foreigner has to buy land in Thailand.
Foreigners are generally prohibited from owning land in Thailand.
There are however three mechanisms under the law by which a foreigner
can control property:
- Set up a property holding company;
- Take a lease for a period of 30 years (renewable for another 30 years);
- Sign a contract with the land owner granting life-long habitation rights.
Regulations concerning the first option were revised in May 2006, introducing conditions the holding company must meet to take title of the land. These will be reviewed with our clients in detail by EUROPEAN LAW’s consultants.
Which agency is responsible for the promotion of inward investment
in Thailand?
The primary agency is known as the Board of Investment (“BoI”).
What incentives are available to potential foreign investors?
Thailand offers a range of fiscal and regulatory incentives to encourage
inward investment. The BoI can assist with assessing suitability
for government tax-waivers and duty exemptions; location issues;
and most importantly will advise you on the procedures necessary
to qualify for promotional status. Once your business proposal
receives this official sanction, your access to a wide range of
official assistance is enhanced.
Is it possible for a foreign venture to enjoy 100% ownership?
The short answer is YES. However it must operate in a business sector
which is not exclusively reserved for Thai Nationals. Additionally,
it must conform to the requirements of the Foreign Business Operations
Act of 1999, and be in possession of a Foreign Business License
issued by the Ministry of Commerce or the Board of Investment.
As these requirements are presently being revised by the interim government that came into power in September 2006, please consult with EUROPEAN LAW ASSOCIATES to determine how you can take advantage of these recent changes.
What procedures do I follow to register my marriage to a Thai
national?
Registering your marriage is an uncomplicated matter: you must arrange
an affidavit from your local Embassy which certifies that you are
single, divorced or widowed; and take a translated copy of that statement
to a local district registrar’s office.
You may also wish for EUROPEAN LAW to arrange a simplified pre-nuptial agreement, as Thai law recognizes the world-wide conjugal property rights of the two spouses.
What are the requirements if a foreigner wishes to retire in
Thailand?
The most important requirements are that the foreigner obtain a non-Immigrant
visa from a Thai Embassy or Consulate abroad; and demonstrate a minimum
balance of THB 800,000. (Euros 17,000.) in a Thai bank account.
Do foreigners have the right to work in Thailand?
Yes, subject to obtaining the necessary work permit, issued by the
Ministry of Labour.
What about expatriate workers who are paid outside the country?
Anyone who is working legally in the Kingdom requires a work permit
to do so, regardless of the source of remuneration.
How long is the application process for a work permit?
The procedure takes approximately three weeks, although it may take
longer in some more complex cases.
Can work commence from the point of application for the work
permit?
Generally, it is illegal to commence employment until receipt of
the permit. However, there are some special circumstances where permission
to work will be provisionally granted prior to or without a work
permit being issued. For example, it is possible for a foreigner
to work inside the Kingdom for up to fifteen days without a formal
permit if the work is necessary and urgent. However notification
and registration is required with the appropriate department.
To
top