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Year: 2024

Filing of Divorce in Thailand

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Divorce in Thailand is a very private affair and one that is rarely talked about in public. Hence, it is advisable to hire a family lawyer to help you prepare and register divorce at the local district office.

An administrative divorce registration is possible only if both spouses are in agreement. If not, it is a contested divorce.

Contested Divorce

A contested divorce is when the spouses cannot reach an agreement on issues like division of assets, custody of children and if or how much alimony to pay. A contested divorce can take a lot of time and resources to resolve and is often more complicated than uncontested divorces. If you are considering filing for a contested divorce in Thailand, it is important to seek the advice of an experienced Thai family law attorney to help you understand the process and your legal rights.

Divorce in Thailand is governed by Thai Family Law and the Civil and Commercial Code of Thailand. There are three ways a marriage can end under Thai law: divorce, annulment and death of one of the parties. The most common way a marriage ends is through divorce. There are a number of different reasons why people get divorced, such as incompatibility, adultery or irreconcilable differences.

Filing for a contested divorce is more complicated than filing an uncontested divorce in Thailand. The aggrieved party must petition the court to file for a divorce and prove at least one ground of divorce under Thai law. It is recommended that the petitioner hires a qualified Thai family lawyer to draft the divorce case and represent them in court.

If the grounds of divorce are proved, the court will issue a divorce decree. This will usually be final and will not be subject to appeal. Once the divorce decree is issued, it must be registered at the district office where the marriage was registered or reported to the Amphur of the city where the Thai spouse lives. A translated copy of the divorce decree and the passport of each party is required to be presented. If one of the parties is a foreign national, they may need to have the divorce decree notarized and to have it legalized with their embassy or consulate in Thailand.

Getting divorced in Thailand can be a stressful experience. Understanding the legal process and the grounds of divorce can help you manage your expectations and reach a resolution that is best for you and your family.

A contested divorce is often more complex than an uncontested divorce in Thailand and requires the representation of an experienced Thai family lawyer. However, there are steps you can take to reduce the stress and speed up the process. For example, you can agree to a quick divorce by mutual consent or make a prenuptial agreement before you marry. You can also try to find other non-adversarial ways of dissolving your marriage, such as mediation or negotiation. These methods are less invasive and can save you a lot of money and time in the long run. These alternatives are also better for your children, who can be deeply affected by the adversarial divorce process. This is especially true if they are not directly involved in the conflict. In these situations, it is usually best for the kids to remain in the care of their grandparents or other relatives until a suitable arrangement is made for them.

Drafting Prenuptial Agreement in Thailand

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A prenuptial agreement is a legal document that determines the way in which property owned by spouses will be handled in the event of a divorce or death. It also helps manage marital finances.

A prenup can help couples avoid future financial complexities and emotional distress. A dedicated law firm specializing in family law, like Frank Tax Legal can create the right documents for your needs.

Legal Requirements

A properly drafted prenuptial agreement is an effective tool for avoiding disputes over property division and other financial matters in the event of a divorce. This can save a lot of time, money and stress for both parties involved. Additionally, it ensures that each party is treated fairly and that their assets will be protected in the event of a divorce.

While Thailand law does allow prenuptial agreements and is more lenient than in some countries, there are specific requirements that must be met for the contract to be valid. A qualified family lawyer who specializes in Thai divorce and property laws will be able to help you draft an agreement that meets these requirements. For example, a prenuptial agreement will need to be signed before marriage and witnessed by two people. The document must also be recorded in the marriage register. In addition, the prenup must be written in both your native language and Thai.

Drafting a Prenuptial Agreement

A prenuptial agreement is a legal contract between two parties before they marry. It outlines the assets each party owns and specifies their rights in case of a divorce or death.

A well-drafted prenuptial agreement can provide peace of mind for both parties and can prevent unnecessary arguments about personal property during marriage. It can also help avoid lengthy and expensive legal battles in the event of a divorce.

However, drafting a prenup in Thailand is a complicated process and should be handled by an experienced family law attorney. A lawyer familiar with Thai law can ensure that the document is effective and enforceable. In addition, they can assist with registering the agreement at the same amphur that the couple marries in. This will ensure that the contract is valid and binding. It must be registered before the marriage, or it will be deemed void. Prenups negotiated after the wedding are called postnups and are not as enforceable as prenups.

Choosing a Lawyer

With the alarming rise of divorce cases, resulting in financial disputes, securing your assets and interests is the best way to protect yourself. Drafting a prenuptial agreement in Thailand, also known as a “prenup”, is one of the ways to do this. A prenup is a legal contract that contains a summary of each party’s individual assets and liabilities before marriage. This is essential as it helps to avoid the possibility of future spouses taking on debt liability that may not be their own.

If you have substantial assets and properties that you want to protect, it is advisable to seek the guidance of an experienced family lawyer in Thailand. This will help to ensure that your prenuptial agreement is legally enforceable under Thai law. Moreover, your lawyer will be able to prepare the agreement in accordance with your unique circumstances. A prenup can include provisions on how inheritance should be handled, as well as child custody and support arrangements.

Getting Started

A prenuptial agreement in Thailand is an important document that protects your assets in the event of a divorce. It is a good idea to consult with an experienced lawyer who can draft an agreement that is enforceable by the Thai courts. A lawyer can also ensure that the prenuptial agreement is drafted according to the laws of your country and Thailand.

A prenuptial agreement in Thailand, also known as a pre-nup or antenuptial agreement, is a contract that spouses sign before marriage. It lists the personal assets of each person as well as any debts they may have. It can also stipulate the rights and responsibilities of management of shared assets during the marriage. A prenuptial agreement can be particularly useful for couples who have significant individual assets or those who marry later in life. This legal resolution can eliminate financial disputes in the event of a divorce. It can also ensure that prior private property stays in the hands of its original owners and is not subject to court review.

US-Thai Treaty of Amity

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The United States and Thailand have long-standing diplomatic, commercial, military, and people-to-people ties. The Treaty of Amity provides for national treatment for American companies and individuals that own majority shares or wholly own businesses engaging in commercial activities in the other party’s territory.

To qualify for Amity Treaty privileges, entities must be registered in Thailand and obtain certification from the US Embassy.

Business Environment

The US-Thai Treaty of Amity creates important rights for American nationals operating businesses in Thailand. Companies with a Treaty Certificate are eligible to receive “National Treatment,” meaning that they will be treated the same as Thai companies under Thai law.

Similarly, the Overseas Private Investment Corporation (OPIC) can provide debt financing and political risk insurance for business investments by American nationals. OPIC supports projects in a wide range of sectors, including tourism, transportation, manufacturing, franchising, power and infrastructure.

While corruption is widespread in Thailand, U.S. firms that follow strict anti-bribery guidelines are able to compete successfully. Companies that have a significant presence in the country should familiarize themselves with the Foreign Corrupt Practices Act and should make sure that their employees are aware of these obligations. The government recently signed a integrity pact, based on a model promoted by Transparency International, that will require public-sector agencies to disclose bidding information and the names of their contractors.

Investment Opportunities

Thailand promotes FDI through clearly articulated incentives, based on the type of investment. The Board of Investment is the central agency responsible for implementing these policies, including granting national company privileges for eligible projects.

The 1966 reiteration of the Treaty of Amity guarantees American citizens and businesses that are majority-owned by American citizens “national treatment,” exempting them from most of the restrictions imposed on foreign investors under the Alien Business Act. The Treaty also provides a one year period during which companies engaged in activities that would become restricted under the Act will enjoy a “grandfather” status, similar to previous foreign business acts.

In addition to the Treaty of Amity, Thailand has bilateral investment agreements with Argentina, Bangladesh, Belgium-Luxembourg Economic Union, Brazil, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Finland, Germany, Hungary, India, Indonesia, Japan, Korea, Laos, Latvia, Malaysia, New Zealand, Peru, Slovakia, Russia, Sweden, Switzerland, Taiwan, and Turkey. The country is also a member of the World Trade Organization, which requires it to treat investment from every WTO member nation equally.

Human Rights

The US-Thai Treaty of Amity guarantees specific rights and privileges to American companies operating in Thailand. Most notably, an Amity Treaty company that has been vested or certified by the Ministry of Commerce will be granted national treatment under Thai law. This means that a company incorporated under the Amity Treaty will be exempt from restrictions on foreign investment (including those imposed by the Foreign Business Act) and will have access to special government incentives, such as the Board of Investment’s BOI.

To qualify for Amity Treaty status, a natural person or company must be a citizen of the United States and must own more than 50% of the shares or have at least 50% of the directors be American citizens. The applicant must also compile and submit the appropriate documents to the Ministry of Commerce for a business operation certificate.

In addition, the Amity process is considerably quicker than obtaining a Foreign Business License. GPS Legal has extensive experience in assisting clients with both the Amity and FBL processes.

Migrant Workers

The US-Thai Treaty of Amity guarantees the rights of American citizens to own and operate businesses in Thailand. However, the country’s current laws still place some restrictions on foreign ownership and operation of businesses in Thailand.

The Thai Foreign Business Act (“FBA”) requires that companies seeking a foreign business license (“FBL”) or foreign business certificate (“FBC”) must have at least 2 million baht in registered capital. This requirement is a significant deterrent to many potential investors, particularly for service companies that need to hire workers.

Treaty of Amity companies can avoid this restriction, if they meet the requirements. The first step in this process is getting a certification from the US Commercial Service (CS). Once completed, this letter can be submitted to the Ministry of Commerce’s Department of Commercial Registration in Thailand to receive a FBL or FBC. Once approved, the company will be granted “national treatment” under Thai law and will be treated as if it were 100% Thai-owned.

Registering a Company Under the Thailand Board of Investment

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Registering a company under the Thailand Board of Investment (BOI) is an important step for foreign entrepreneurs. The benefits of BOI affiliation include both tax and non-tax incentives.

These incentives include 100% foreign ownership, reduced requirements for hiring foreign workers and the ability to own land for industrial projects. Other perks include a quota exemption for bringing in skilled workers and more.

How to Register a Company

The Thailand Board of Investment is a government organization that promotes investments in targeted economic sectors by offering fiscal and non-fiscal incentives. Foreign investors are permitted to have 100% ownership of a private limited company if their businesses meet the requirements set by the BOI.

The first step in registering a business under the BOI is to reserve a company name online with the Department of Business Development. Then, prepare a Memorandum of Association and Articles of Association, bank certificate, list of shareholders, director forms signed by all directors, and a declaration of business operation form.

Obtaining a BOI certificate takes about six months. Once you have it, you need to demonstrate that your business is operating and show proof of funds (at least one-fourth of the essential capital requirement of 1M+ THB). In addition, you will need to secure work permits for all expatriate employees. Our experienced team can help you with all aspects of the BOI process, from preparing your pitch to BOI officers to ensuring compliance once you have your BOI license.

Obtaining a Company Registration Certificate

A Company Registration Certificate is a proof that a business has been registered with the government. Providing this certificate to clients, suppliers and lenders is a way to reinforce the legal validity of your business. It can also expedite the process of obtaining various licences including debt collection and industry specific licences.

The BOI is a government body that promotes investment in the country by devising different investment policies. This agency operates under the Prime Minister’s office and provides several benefits to companies that are promoted by it. These include tax and non-tax incentives. The former consists of exemptions and reductions in corporate income tax for a certain amount of years, and a decrease in taxes on dividends payable to shareholders.

Non-tax incentives can also include a deduction in the costs of electricity, transportation and water supply, as well as exemption from import duties on machinery and raw materials. This can help reduce production costs and increase productivity.

Obtaining a Company Tax Identification Number

A business tax identification number is an important piece of information to have when starting a new company. It can help you get a business bank account and save time when filing taxes. It can also make it easier to track your profits and losses. You can obtain a TIN through an online form, or by submitting a paper application.

A company is an artificial person created by law with a distinct legal identity, perpetual succession, common seal and shares of capital, which can be traded and owned. Depending on the country, it can be limited or unlimited in its capital, public or private, a corporation with or without share capital, a partnership or a community interest company.

If you want to apply for a TIN by phone or mail, it will take much longer than using an online application. For example, if you use the mail-in method, it can take up to six weeks for your TIN to be returned. This is a slow and inefficient method of applying for a TIN.

Obtaining a Company Bank Account

Once a company has been promoted by BOI and receives its promotion certificate, it is required to obtain a bank account. This can be done at the company’s one-stop service center or by contacting a bank directly. The bank will be required to verify the company’s ID number and registration number.

The BOI is Thailand’s primary investment promotion agency and offers tax and non-tax incentives to businesses that operate in targeted economic sectors. It also provides assistance to companies with navigating Thai regulations and is a key factor in the country’s improvement in the World Bank’s Doing Business Report over recent years.

The BOI promotes investments that will help enhance national competitiveness and drive a balanced, sustainable economy. This includes promoting R&D, innovation, value creation in the agriculture and industrial sector, SMEs, fair competition, and environmental sustainability. In addition, it focuses on outward investments to developing countries. Outbound investments are typically made through the BOI or the MOC’s Department of International Trade Promotion (DITP). Both agencies focus on boosting competitiveness and supporting SMEs in international markets.

Set Up a Representative Office in Thailand

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Many foreign companies looking to enter the Thai market choose to set up a Representative Office. This allows them to conduct non-revenue generating activities in the country without having to establish a full business entity.

Representative offices are 100% foreign owned and don’t pay corporate taxes. However, they must meet staffing requirements and report annually.

Getting Started

A foreign company that wants to explore the potential of the Thai market without investing in a full-fledged business operation can establish a Representative Office. This type of entity carries out non-revenue-generating activities on behalf of the head office, such as conducting research and providing advice. It can also source and inspect products and provide quality control.

The first step is to complete a feasibility study. This will help determine the potential of the local market, legal and regulatory requirements, and cost considerations. It is also advisable to seek the assistance of a local law firm or accounting firm with expertise in setting up representative offices.

Once the feasibility study is completed, a foreign company must register its representative office with the Department of Business Development (DBD). It must also submit a letter of authorization from the head office and a list of authorized personnel. The office must also comply with Thai labor laws and obtain visas and work permits for foreign employees.

Choosing the Right Business Form

A Representative Office in Thailand is a great option for companies that want to establish a presence in the country without engaging in revenue-generating activities. However, setting up a Representative Office can be challenging for foreign companies because they have to find a local manager and complete a lot of paperwork.

The Representative Office is allowed to perform non-revenue-generating activities, including reporting on business movements in the country and establishing contacts with local customers and distributors. The office can also conduct market research and provide important support to the company’s headquarters.

The Representative Office must pay a fee when it starts operations and submit audited financial statements, even though it will not earn any income in the country. It can also hire employees, but any staff members must have taxpayer cards and be subject to personal income tax. It must also pay an annual fee to the Ministry of Commerce. It is not subject to corporate income tax with the exception of deposit interest from remitted funds.

Obtaining a License

Generally, a foreign parent company that wants to set up a Representative Office will submit the following documents to the Department of Business Development:

A certificate of incorporation and financial statements of the parent company. A letter of recommendation from the parent company’s director. A business plan outlining the intended activities of the Representative Office. A notarized power of attorney from the agent or principal manager who will manage the day-to-day operations of the Representative Office in Thailand.

A bank account for the Representative Office in Thailand through which it will receive remittances of funds to cover operating expenses. A work permit for any foreign staff (maximum of two) at the Representative Office. A tax ID and compliance with reporting obligations. A report to the head office on business movements in Thailand. The Rep Office can’t sell products directly or engage in business negotiations; but it can report on the market to help its parent company make better decisions about expanding into Thailand.

Choosing a Location

A representative office, also known as a rep-office or regional office, is the most common option for foreign companies to operate in Thailand. As a non-trading entity, this office cannot generate income in the country but can perform a number of limited business activities and report back to its head office on the market, clients and supply situation.

The process of establishing a representative office is relatively quick and easy. To set up this office, you will need to submit a number of documents, including the certificate of incorporation and financial statements from your parent company, a letter of recommendation from the company in question and power of attorney for the manager in Thailand (to be certified as true copies by the embassy or consulate). The branch does not require a Thai partner, unlike other types of businesses. Nevertheless, it is essential to choose an appropriate location for your office. This will influence the location of your employees, your ability to access your target markets and the cost of acquiring and maintaining office space in the country.

Thai Limited Company Registration

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Before establishing a company in Thailand, you must prepare the Memorandum of Association and call a statutory meeting. This will allow the company to define its objectives, capital, and shareholders. It is also important to note that some business activities have restrictions on foreign ownership.

A Thai Limited Company must have a minimum registered capital of 2 million baht. In addition, it must adhere to accounting and auditing procedures.

Company name reservation

A company name is a crucial part of the registration process, and choosing the right one can help you establish your brand identity and build trust with customers. It can also protect your intellectual property rights and prevent potential disputes with other companies.

In order to reserve a company name, you must submit an application with the Department of Business Development (DBD). The DBD will review the name and ensure it is unique and complies with their guidelines. It may take a few days for the department to reserve the name.

After the name is reserved, you must prepare a Memorandum of Association and Articles of Association (AOA). You will also need to deposit the capital required by the DBD. Once your documents are ready, you can open a corporate bank account and begin operating your business.

Memorandum of Association

A memorandum of association (MoA) is an official document that sets out a company’s objectives, authorized capital, shareholders, and other relevant details. It is an essential step in forming a limited company. The MoA is distinct from the Articles of Association, which outlines how a company is run.

We can help you draft a comprehensive and thorough MoA and complete all required paperwork for your business to be registered in Thailand. We can also assist you with obtaining any sector-specific licenses that your company may need to operate in the country. Contact us to schedule a free consultation, and we’ll walk you through the process of setting up your company in Thailand.

Shareholders

During the process of forming a Thai limited company, the initial promoters of the business must register themselves as shareholders. This ensures that their liability is limited to the amount of money they invested in the company. It also helps in ensuring compliance with accounting procedures.

It is recommended that at least three shareholders be registered for the company. These must be natural persons. Foreigners may hold up to 49% of the company’s shares. However, certain industries have restrictions or require special permissions for foreign ownership.

The company must prepare and submit financial statements every year. Failure to comply with these requirements can result in a Baht 50K fine. It must also issue share certificates to its shareholders and maintain a book of register.

Directors

Directors of a Thailand limited company are responsible for the management of the business. They are also liable to the extent of their shares. The most popular form of business in Thailand is the private limited company. This business structure is popular among foreign investors as it offers separation between ownership and management. However, the majority of the company shares must be held by a Thai citizen. Foreigners can also set up a BOI certified company if their activities fall within the scope of BOI promotion.

It is important to note that the registered office must be located in Thailand. The address must be registered and permission must be obtained from the property owner. The company must also submit financial statements and comply with tax regulations. It must also have an official stamp to sign documents.

Company registration

Company registration is one of the most important steps for foreign investors planning to set up a business in Thailand. However, it is a complicated process that requires careful preparation and consideration. It is best to have a service provider like Acclime handle the entire process for you to avoid any hassles.

Choosing the right name for the company is crucial. It must be unique and not resemble any other registered names in Thailand. In addition, the name must end with “Limited.” Name reservation can be done online and is usually approved within a few days.

The next step is preparing the Memorandum of Association and calling a Statutory Meeting. The MOA must outline the objectives, capital, shareholders, and directors of the company. It must also list any form of contracts entered into by the company.

Thai Will and Succession

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A Thai Will is a legal document that expresses your decision as to who should inherit your wealth. Without a Will the law decides this and it is very possible that your property will end up with family members that you have not wished to give anything to.

A legal Will must be in writing dated at the time of making and signed by you (the testator) before two witnesses.LegalityA Thai will allows you to choose your legal heirs and outlines your wishes on how your estate should be distributed. Without a will the law will determine this and it could mean that part of your estate ends up with people you would not have wanted to receive anything.Under Thai inheritance law the surviving spouse qualifies as a statutory heir (section 1635 of the Civil and Commercial Code) and inherits a minimum of one-half of the deceased’s property (unless there is a prenuptial agreement). The remainder of the estate will be divided among the statutory heirs in class 1, 2, 3, 4, 5, or 6 which include children, parents, brothers and sisters by full blood, half-brothers and half-sisters, grandparents and aunts and uncles.A lawyer will prepare the application for probate or administration of an estate which involves sending legal notices to all parties involved in the case. The lawyer will also help with any documentation required such as a death certificate, proof of ID and a list of all assets owned in Thailand including real estate, shares, bank accounts, etc.ExecutionA Thai Will must be written in ink and signed by the testator and two witnesses. The testator must be at least 15 years old. A will made by a minor is rendered void. However, a testator can make an oral will when no witnesses are available.A well-drafted Thai Will minimises difficulties and expenses after your death. It is also an important document to help you decide how your assets will be allocated to family members.If you die without a will, it is known as dying intestate. In this case, your estate will be distributed according to Thailand law on inheritance. This could result in legal disputes between your family members.Moreover, the process of inheritance in Thailand can be time-consuming for heirs who live overseas. For example, it can take up to several months for an heir to get the final decision from a court in Thailand. In addition, inheritance taxes must be paid, which can add up to a significant amount.ProbateWhen a foreigner dies in Thailand and they own assets here their family will hire a Thai lawyer to initiate a probate proceeding. This process is intended to project the wishes of the deceased in accordance with Thai laws and ensure that their assets are properly allocated among their legal heirs in a timely manner.The first step of estate administration is to verify the deceased’s property assets, disburse any debts, and obtain a probate order from the court. In the event that there is no Will or the Will is invalid, the court will determine beneficiaries and allocate property according to the six classes of statutory heirs stipulated in Book VI of the Civil and Commercial Code.In order to avoid delays and unnecessary expenses it is advisable that all persons owning assets in Thailand draw up a Will, even those who are not concerned about passing on their property to others. A Will allows a person to control their estate in accordance with their wishes and also prevents potential quarrels between relatives.