Comments Off on Setting Up an Association (Thai: Samakom)
1. General Characteristics
An association may be created for any lawful activity that, according to its nature, is to be done continuously and collectively by persons other than of distributing profits to its members.
It may engage in activities beneficial to the public, however, by definition associations are organizations of members who act together to achieve specified objectives. Some typical examples of activities of associations include sports clubs, hobby clubs, and religious organizations. The non-profit association is also the most common legal form for NGOs.
The association shall have at least ten members. Their names, addresses, and occupation shall be indicated in the application for registration of the association. The members shall pay a subscription fee to the association. The association is not required to hold an initial registered capital.
An association is registered under Thailand law with the Thailand Ministry of Interior. It can earn income, but must comply with tax law and other laws of Thailand. They are required to file annual reports with the competent Thailand government ministries including an income and expense audit report certified by an accountant and a copy of the minutes of the annual meeting.
The association shall adopt regulations in accordance with Thai laws. Alterations of and additions to the regulations may be made by a resolution of the general meeting.
An association is represented by its committee in its relations to third parties. The appointment of committee members shall take place according to the regulations of the Association and Thai law. The appointment must then be registered. The Registrar may refuse the appointment of a committee member, but only under specific circumstances such as the committee member not having the status or conduct required for implementing the object of the association. The registrar would then have to notify the association in writing regarding the reasons for such decision.
The association may be dissolved under specific circumstances, including a resolution to dissolve passed in a general meeting. In the case of dissolution, the liquidation of assets will follow the principles of liquidations of (for-profit) companies.
2. Procedure to Establish an Association
The documentation required for the registration is the following:
The regulations or by-laws of the Association.
The name list with the occupation and address of at least initial 10 members.
The name list with the occupation and address of directors of the association at least 3 directors.
Background histories by three promoters which are certified by a department-level government official (sixth-ranked civil servant or upward).
The meeting minutes to establish the Association by at least three promoters.
Map of location of the association.
Letter of consent form landlord to use the land/building as the location of the association with the Documents showing the ownership of the landlord.
Certified copy of the ID card and house registration book of all members and directors
Other document (if any)
Below is the required information to be included in the regulations or by-laws of the Association:
Name, logo and location. The Association must incorporate the word ‘Association’ in its name.
Address of the main office and all the branches.
Rules and procedures related to membership.
Details of membership fees, in particular rates.
Committee of Association rules namely:
Number of Directors
Appointment of the Directors
Term and retirement of office of the Directors
Meetings of the Committee
Management rules which include the keeping of accounts and property of the association.
Management rules regarding annual general meeting
The application must be submitted to the District Office where the association will be located.
The government fee is 2,000 THB and it must be paid when the registration certificate is collected at the district office.
Comments Off on FRANK Legal & Tax joins Thai Institute of Directors Association (IOD)
We are proud to announce that FRANK Legal & Tax Ltd. is now a member of the Thai Institute of Directors Association (IOD).
The Thai Institute of Directors Association (IOD) is a leading organization dedicated to improving director professionalism and corporate governance in Thailand.
Founded in 1999, two years following the 1997 Asian financial crisis, the IOD has been at the forefront of promoting good governance practices in the Thai companies. Through its various activities, the IOD had helped develop professional standard of directorship, and provided best practice guidelines for company director to perform their duties effectively up to the international standards.