BUSINESSProperty in Thailand


In the human society, various things have to be in place to ensure that man lives comfortably. When man is comfortable in his environment, he would have the peace of mind to be involved in various activities. It is expected for man to be involved in various activities as they form part of his life. Hence, things have to be put in place to ensure he is comfortable. Man needs shelter to survive. Shelter can be gotten either by buying or building it or renting. There are times when foreigners would want to purchase property in a country. It should be noted that countries have laws on foreigners buying landed property. An example is Thailand.

In Thailand, foreigners cannot buy land, only apartments and condominium units. Foreigners cannot make up more than the percentage of 40 of the unit owners of condominium. However, foreigners can purchase a building, excluding the land which it is built on. In recent times, subsequent little alterations in Thai law have given non residents the right of exploration of the Thai real estate market. Foreigners can have a renewable lease of 30 years, under which the buyer would register an option for renewal of lease contract indefinitely at the land office, for another 30 years. There are great setbacks, however renewal of lease cannot be registered and are also not effective against a buyer of the property. Furthermore, the lessee cannot sublease, transfer or sell his interest. Another option is for one to set up a private limited company with both Thai and foreign ownership which can be 49% or less. Companies are also allowed to own lands. Foreign national can control and handle company by making use of legal

power of attorney from Thai shareholders, giving control to foreign directors or via giving greater voting rights to foreigners. This is seen as an effective route that is mostly taken by foreigners. It should be noted that the help of a law is paramount.

How To Create A Thai Private Limited Company

To create a Thai private limited company, the following should be followed:

1. Corporate name reservation: One must reserve a name of the company at the register of partnership and companies, ministry of commerce and business development by submitting 3 prospective names. The name of the company must not be alike with any other company that is registered. The reservation is only valid for 30 days with an option for renewal. The process is free and is expected to get confirmation in 2 working days.

2. File a memorandum of association: one must file a memorandum of association with the business development office. The memorandum of association should contain location, reserved company name, registered capital, objectives, number of shares etc

3. Convene a statutory meeting: List of subscribers, their number of shares, addresses must be presented at the statutory meeting. Notice of invitation or Statutory report must be sent to all subscribers before the meeting is held

4. Payment of shares

5. Registration

6. Tax registration