In previous posts, we have elaborated on the importance of preparing a will if you live in or own assets in Thailand.
One of the essential parts of such a will is the appointment of an administrator of the estate who has to manage all matters regarding the estate. The administrator can be appointed by will or by Court order under Section 1711 of the Thai Civil and Commercial Code (“CCC”). The administrator is required to be a person of sui juris, which means a person with the age of 20 years or older, not of unsound mind or not adjudged quasi-incompetent, and not adjudged bankrupt by the court.
Rights and duties of the administrator:
The scope of rights and duties of the administrator includes two main elements:
1. To fulfill all necessary acts as expressed or implied in the will and to administer and distribute the estate. The administrator has the right to do so without consent of the heirs being required, according to Section 1719 CCC. However, as the administrator is acting on behalf of the heirs, he is liable to them under the agency law of the CCC for any wrongdoing.
2. To prepare an inventory of the estate within 15 days from the death of the testator, the appointment by the court, or from the date of his acceptance of his duties as administrator. The inventory of the estate must be done within one month; however, an extension may be granted by the court. The purpose of the inventory of the estate is to give the heirs the possibility to check the accuracy, as well as the good faith of the administrator.
End of the duty of an administrator:
1. The duty of an administrator can come to an end under the following circumstances:
2. The resignation of the administrator. For this, an approval by court is required, according to Section 1727 of the CCC.
The death of the administrator; his duty is deemed to be terminated, as the role of the administrator is not part of the heritage.
3. The discharge of the administrator under section 1727 of the CCC. This provision states that the administrator may be discharged by court order for neglecting his duty or other causes by an application of any interested person before the completion of the distribution of the estate. It must be noted that the administrator will maintain his authority until the removal by the Court.
After termination of the administratorship, there is – according to Section 1733 CCC – a five years prescription period in which the heir can claim compensation from the administrator.
If you have any questions regarding this article, feel free to contact us at [email protected]
FRANK Legal & Tax hosted a seminar on BOI Promotion for Tech Startups, attended by a full house of businesspeople working in the tech and digital sectors in Bangkok.
The event provided an opportunity to explore BOI promotion related to the tech industry in Thailand and gave insights into the various BOI categories that are relevant to IT, software development and tech business.
The audience asked a number of questions based on their own experiences of planning or trying to pursue BOI promotion in Thailand.
The event was a success, drawing attention to the importance of the rule of law in doing business in Thailand, and raising awareness of the ways in which business people in Bangkok can take advantage of BOI promotion.
FRANK Legal & Tax looks forward to continuing events related to important legal issues and we welcome any questions you may have about doing business in Thailand by contacting us at [email protected]
Thailand’s hotel industry is one of the major economic sectors in the Kingdom, with more than 38 Million Tourists visiting Thailand in 2019. But still, a vast number of these accommodations is operated without licenses, or in violation of the law.
On June 12th, 2019, Order No. 6/2562 was issued by the National Council for Peace and Order (NCPO). This order suspends the enforcement of town planning and building regulations from June 12th, 2019 to August 18th, 2021, on buildings meeting the following criteria:
Further, this order grants amnesty to operators of hotels who were acting without compliance with these regulations before June 12th, 2019, if they notify the authority in charge of any of the following breaches:
After notification, the local authorities will inspect the building within 30 days of the report and inform the hotel operator in writing after the building complies with the law, so he can continue business without being penalized for the violations of the law as mentioned above.
Please note: While the amnesty for violations of the fire safety regulations was limited to a period of 90 days after the amendment of this regulation, it is still possible to obtain amnesty for the breaches of the regulations mentioned herein.
If you have any questions regarding the hotel amnesty, feel free to contact us at [email protected]
With the ministerial regulation by the Ministry of Commerce of June 25th, 2019, the following services provided by foreign-owned companies, to affiliated companies, are excluded from the obligation to obtain a Foreign Business License according to Schedule Three (21) of the Foreign Business Act.
It needs to be mentioned that it is possible to provide consultation and recommendations to affiliated companies that are located outside of Thailand.
Before the new regulation came into effect, foreign companies providing these services had to obtain a Foreign Business License to act in accordance with the law. This required them to fulfill additional conditions which were hard to meet for small companies or Start-Ups. This new regulation is a further step, that is underlining Thailand’s effort to open its market for foreign business carefully.
If you have any questions regarding the trademark registration, feel free to contact us at [email protected]
The house registration certificate Thailand, “Tabien Baan”, is the official resident, house or apartment address registration booklet in Thailand. The house registration book includes the personal information of the persons having their domicile or legal residence at the house or condominium unit in Thailand.
Contrary to what is often presumed by foreigners, this document is not proof of owning a house in Thailand. The Tabien Baan is a document issued by the local municipality (and not the land department) that is part of the official address registration Thailand papers of a home or condo unit. Its practical use is that it proves a person’s place of legal residence (official domicile). A house registration book may state the name of the owner, however in the case of a foreigner owning a house in Thailand who is not a Thai resident, it does not (unless he has official permanent residency in Thailand).
There are two types of Tabien Baan:
Owning a house in Thailand
As proof of person’s domicile, the Tabien Baan is asked on many occasions, e.g. car ownership transfer or land office registration, opening a bank account or when applying for utilities, such as a new electricity or telephone line connection. It also gives Thais the right to vote in the respective district. Since foreigners are usually not registered in a Thai house registration book, where proof of address is required, the ones with a non-immigrant visa may alternatively present a letter of residence. The local immigration office issues such documents. If the foreigner owns a condominium, the title deed in combination with the (empty) blue Tabien Baan and his passport may also serve as proof of residence.
In the case of a foreigner owning a house (separate from the land) or a condominium in Thailand, the blue Tabien Baan is usually empty, unless he has Thai nationals living with him who have their permanent home at this address. It is also possible for the foreigner to request the yellow booklet if he meets one of the following qualifications:
Any foreigner who meets one of these qualifications is eligible to apply for a yellow house registration book under Section 38 of Civil Registration Act B.E. 2534 (1991).
The house registration book may provide certain tax advantages as well, mainly related to the resale of a property. In the case of the individual registered in the house registration book, Stamp Duty applies (instead of Specific Business Tax which has a significantly higher rate), if the seller has owned the property already more than one year (instead of five years without house registration). The house registration book provides acceptable proof of that.
Tips for buying condo in Bangkok or buying a house in Thailand
The foreigner or a new house owner may apply to the local municipality for issuing a house registration certificate Thailand within 15 days after the construction of the building is completed, or at any time after the acquisition of the condominium unit. Please see the following requirements for the registration:
|Foreigner is the owner of the structure||Foreigner is the condominium unit owner|
|Original passport including official Thai translation,||Original passport including official Thai translation,|
|Building permit and layout plan,||Official condominium sale agreement issued by the land office,|
|Official House Sale Agreement issued by the land office,||Lease agreement at the land office (in case of a long-term lease),|
|Official Lease Agreement issued by the land office (in case of a long – team lease),||Unit title deed,|
|Land title deed,||Pictures of the unit|
|Photographs of the house,||POA (if any)|
|2 Witnesses||2 Witnesses|
|POA (if any)|
After submission, the house registration process will take approximately 30 days, depending on the municipality in charge.
Feel free to contact us if you have any questions at [email protected]
Trademarks are used to identify a particular product or service. Often companies invest a significant amount of money in introducing and establishing a trademark. To protect this investment, it is essential to grant the exclusive use of this trademark for the investor.
In general, there are two different ways to protect a trademark in Thailand:
1. Local trademark rights
The local trademark registration follows the international standardized classification of the Nice System. Local trademark protection is ensured by the Trademark Act (No.3) B.E. 2559 (2016), where a trademark can be registered at the Department of Intellectual Property (DIP). The registration fee is 1000 THB for one to five items, and 9000 THB for more than five items. Registration is valid for 10 years and extendable for a further 10 years by paying a fee to the DIP. It is required that the owner of the trademark is a natural or juristic person located in Thailand. A natural person is required to be a Thai citizen. For juristic persons, it is possible to register a trademark in the name of a Thai affiliated company. Trademark protection under the Trademark Act only grants protection in Thailand; other ASEAN-Countries are not included.
2. Madrid Protocol
After the Kingdom of Thailand joined the Madrid Agreement Concerning the International Registration of Marks (Madrid Protocol) on August 7, 2017, which came into effect on November 7, 2017, it is now possible to ensure the protection of a trademark internationally. The preservation of the trademark is guaranteed in the majority of the ASEAN countries; the exceptions are Malaysia and Myanmar.
The Madrid Protocol provides a system, which allows a trademark owner with an existing trademark registration – the so-called basic registration – in a member-state of the Madrid system, to extend the trademark to other member states by applying for a so-called international registration.
This centrally administrable system allows its users to obtain multiple trademark registrations in separate jurisdictions. The certification under the Madrid Protocol creates a bundle of national rights that can be managed easily. The period of protection is also 10 years and can be extended by a further 10 years. The applicant should be aware, that a refusal, withdrawal or cancellation of the basic registration within five years after its registration will have the same consequence on the international registration.
if you have any question with regarding to Trademarks in Thailand, Please feel free to contact us at [email protected]
The Board of Investment Thailand (BOI) agreed to promote investment incentive schemes for “Smart City” to improve living standards. Smart City is an initiative for advanced IT systems and innovations; the incentives shall contribute to the promoted city’s development in six fields and enhance the people’s quality of life, especially in more remote areas. Smart City focuses on the improvement of:
Investors who plan to develop Smart City infrastructure systems, especially with the focus on telecommunication infrastructure will benefit from the BOI incentives; provided that the project includes operations in one of the six aforementioned fields. Furthermore, IT system developers who support the Smart City project by creating, installing and providing solutions for one of the six fields will be promoted by these incentives. However, it is notable that the BOI grants a corporate income tax exemption of eight years for investors operating in the eligible fields plus a 50% reduction for another five years. By implementing its own solutions, Thailand strives for technological independence in the digital sector.
Smart City is a step towards “Digital Thailand” and according to the Minister of Digital Economy and Society Dr. Pichet Durongkaveroj, “Digital Thailand” aims to reduce the disparity in the society and enhance the regional development. Therefore, digital education is seen as a key factor for Thailand’s technological development.
The BOI was established as a government agency under the office of the Prime Minister carrying out the Investment Promotion Act (B.E. 2520; 1977, as amended) to promote certain types of highly sought-after foreign and domestic investment in Thailand. Today, the BOI can guarantee different incentives to an investor.
The BOI has discretionary authority to grant certain trade, taxation, employment, financial and other benefits.
In this article, we would like to summarize what incentives can be obtained, in an ideal scenario, as a maximum:
Non-tax incentives are available at the BOI’s discretion and include such investment privileges as:
If you have any questions regarding the BOI application and its benefits, feel free to contact us at [email protected]
Amendments to Thailand’s Factory Act will greatly affect the entire industrial factory business throughout the country. On 30 April 2019, the Royal Thai Government Gazette declared an amendment to the Factory Act B.E. 2535 (1992) by The Factory Act (No. 2 and No. 3) B.E. 2562 (2019). Recently, The Factory Act (No. 3) passed the 180 days period and became effective on 1 May 2019. The Factory Act (No. 2) is not effective yet.
In the amendment, the word ‘factory’ has been modified to mean a building, place, or vehicle using machinery with 50 horsepower or more, or 50 workers with or without machinery, in its operations. This means that around 60,000 factories nationwide with machineries and workers under the old factory act will from now on not be classified as a factory governed by the factory act any longer, but they still need to comply with the local ordinances, issued under e.g. the Town Planning Act, or the Public Health Act 1992.
Moreover, the word “construction of buildings” was removed from the definition of a “factory set up”. As a result, the factory license is no longer required for the building construction process as it is not considered as part of “factory set up” but it will be required for installation of machinery in the building.
It is stated in the new Factory Act that the factory or machinery inspection may be carried out by a factory inspector who is a qualified person or juristic person to perform and prepare the report, instead of a competent government official. Previously, checking the machinery or factory condition was the responsibility of the Department of Industrial Works officials.
Also, the officer in charge will have the authority to stipulate an exemption to the following factories, from complying with certain provisions of the Factory Act ( in certain cases and under specific rules, procedures and conditions):
(1) Factory belonging to a state agency;
(2) Factory that is used for research;
(3) Factory belonging to educational institutes that is used for training;
(4) Factory that operates as a household industry;
(5) Factory with necessary operations that connect to other business which are not factories according to the Factory Act and established in the same area.
Lastly, according to The Factory Act (No. 2) the general factory operators do not have to renew the factory license (Ror.Ngor. 4) anymore until the factory ceases operations. This is good news for all factory operators, because typically they used to require a renewal every five years in order to avoid that the license expires.
If you would like any further information, please do not hesitate to contact us [email protected]
Starting a Business in Thailand is much easier when the Board of Investment (BOI) promotes you. Our next event will provide an opportunity to explore the BOI promotions related to the tech industry in Thailand. Our experienced Lawyers will be starting with a big-picture view of foreign business licensing in Thailand, which will be followed by insights into the various BOI categories that are relevant to IT, software development and tech business. In addition, our Managing Partner, Fabian Doppler will briefly discuss the legal process for start-ups in Thailand.
The admission fee will include:
Fabian Doppler – Managing Partner
Fabian Doppler is a founding partner of FRANK Legal & Tax, Bangkok. He focuses his practice on corporate and commercial law, as well as real estate law, advising clients on a number of regulatory, compliance and transactional matters. He has developed a specialty in providing advice in the areas of corporate legal structuring, licensing and contract negotiations for foreign direct investment in Thailand. He counsels discerning corporate clients at C-level, from the point of planning the market entry and support in the operational phase through to successful resolutions of legal disputes.
Rangsarit Suwanarat – Specialist Corporate law
Rangsarit Suwanarat is a Thai attorney with more than four years of litigation experience and more than three years of corporate experience. He has represented individuals and juristic person clients in civil cases and represented a foreign company in a rehabilitation case at Thai Bankruptcy Court. Mr. Suwanarat supports company registrations for Thai and foreign clients, trademark registrations, applies for foreign business licenses, juristic person life insurance, brokerage license as well as applies for Board of Investment Promotion. He has developed a specialty in contract drafting and providing advice on taxation
The meeting will be on August 21, 2019 at 6.30pm at the Novotel Bangkok Ploenchit Sukhumvit, 566 Phloen Chit Rd, Lumphini, Bangkok 10330 (see Google Maps: https://goo.gl/maps/UuPgNhKgBmN2)
FRANK Legal & Tax regularly hold public events, designed to support the business community in Bangkok.