Thailand law does not use the term “Non-Government Organization” or “NGO”.  Normally, foreign organizations register as either a Foreign Private Organizations or as a locally registered Foundation.

A Foundation is a legal entity registered with the Thai Ministry of Interior for public benefit purposes such as charity, religion, arts, science, literature and education and other activities that may serve the public’s interest.

Read More: Thailand NGO

Additional requirements to obtain a Thailand work permit include:

• The business or the job offer  must not be restricted to Thai nationals
• The job involves work for which Thai nationals are otherwise qualified.
• The business or hiring company must meet capital and employee size requirements.
• Non-Thai nationals or foreign workers must possess the correct category of a valid visa or residence permit.
• Salary offered by hiring companies to foreign workers must meet the minimum salary requirements of the Thai Ministry of Labor.
• The foreigner must be qualified for the work.

A work permit allows non-Thai nationals to lawfully work in Thailand. Working without a work permit in Thailand is illegal and is punishable by imprisonment and monetary fines. The punishment imposed varies based on the category of work that the person engaged in Thailand.

Read More: Thailand Work Permit

The US- Thai Amity Treaty provides US citizens special rights to run businesses in Thailand and also provides Thai citizens special privileges to run businesses in the USA. The treaty allows US citizens in Thailand to hold a majority of shares in companies engaging in certain business enterprises in which majority ownership is generally restricted to Thai citizens under the Foreign Business Act.

Companies with the following requirements may qualify to register under the Treaty of Amity:

• At least 51% of the company shares must be own by American citizens.
• In general, the company directors must be American citizens.

Treaty of Amity business capital requirements:

• Businesses not restricted under the Foreign Business Act must have the capital requirement of 2 million Baht for a Treaty-protected company.
• Businesses that are required to obtain a Foreign Business License under the Foreign Business Act must have the minimum capital requirement of 3 million Baht for each business activity.

The primary benefit of the Amity Treaty to US citizens in Thailand is to manage and own companies in Thailand without needing majority Thai shareholders. In other words, foreigners who are not US citizens would normally require a Thai partner holding 50% or more of the shares in the company to legally conduct business in Thailand.

The Amity Treaty provides Americans an exception to the “Thai partner” requirement that is not available to other nationalities. However, the right is limited and does not apply to all types of business activities.

Thailand BOI Incentives

The Thailand BOI incentives are classified into the following types:

• Tax Incentives

 A BOI promoted company in Thailand may be eligible to receive an exemption or reduction of import taxes duties and may also be eligible to be exempted from a juristic person’s tax and dividends, as well as double deductions from the cost of transportation, electricity, water and project’s infrastructure installation.

• Non-Tax Incentives

Local and foreign businesses certified by the Thai BOI are eligible to hire foreign skilled workers and experts. Further, the BOI provides for express non-immigrant visa and work permit processing through “One-stop Visa”. Non-tax incentives may also permit foreign freehold landownership to businesses involved in industrial related projects.

Setting up a Thai BOI Promoted Company

Investors seeking to do businesses in Thailand may apply for a Thai BOI promotion. The BOI categorizes industries according to types and provides application forms specific to each industry.  Generally, companies that are given priority for Thai BOI licensing are those involved in technology and innovation, manufacturing and export and other investments showing potential business growth.   Non-industrial businesses such as nursing homes for the aged and movie productions are also promoted by the Thai BOI with investment incentives.

Thailand tax

The type of business in Thailand will affect tax rates and tax benefits according to the rules and regulations prescribed in the Thai Revenue Code. Foreign companies in Thailand have special tax requirements.

Thai company

Thai companies are registered under Thai law and are generally taxed 30% of net profit. However, the following types of Thai company are taxed at a lower rate:

• Thai company with less than 5 million baht paid-up capital
• Thai company with Stock Exchange of Thailand (SET) registration
• Thai company recently registered with the Stock Exchange of Thailand (SET) and Market for Alternative Investment (MAI) within 3 years from 6th September B.E.2545
• BangkokInternational Banking Facility and Regional Operating Headquarters
• Association and foundation

Foreign companies operating in Thailand

In general, companies conducting business in Thailand, whether majority Thai owned or foreign owned, are taxed at a rate according to their profit and their registered capital.

Thailand Tax Registration

Foreign companies seeking to set-up a branch or an office to conduct business in Thailand are required by Thai law to apply for tax identification number from the Thai Revenue Department.

Thailand tax Filing and payments

Thai and foreign companies in Thailand are required to comply with the following tax returns and payments procedure two times in a year.

• Submit semi-annual tax return (CIT 51 form) within two months after the end of the first six months. Tax due shall be half of the entire year projection of the company’s annual net profit.
• Submit annual tax returns (CIT 50 form) within 150 days after the closing date of its accounting period.

Thailand accounting standard

Thailand accounting services generally conform to Thai accounting standards and financial reporting standards formulated by the Thai Federation of Accounting Professions (FAP) and the Institute of Certified Accountants and Auditors of Thailand (CAAT) corresponds with international accounting and financial reporting standards.

Companies in Thailand will need to prepare and keep accounts drafted according to the Thai Accounting Standards formulated by the FAP and CAAT:

Accounting:

• Monthly financial reports (Balance Sheet, P&L)
• Withholding tax (PND 3, 53)
• Value added tax (PP 30)
• Withholding tax return (PND 54)
• Mid-year tax return (PND 51)
• Annual tax return (PND 50)
• Annual financial statement submission to the Thai government
• Record accounting transactions
• Supporting schedules for financial statements

Payroll:

• Payment transfers
• Payroll calculations
• Report distribution
• Pay-slip creation
• Banking of employee net salary
• Withholding tax (PND 1)
• Social security (SPS 1-10)
• Withholding Tax Certificate (BIS 50)
• Provident fund
• Payments to government agencies

• Sale
• Hire of property
• Hire-purchase
• Hire of work
• Carriage
• Loan
• Deposits
• Suretyship
• Mortgage
• Pledge
• Warehousing
• Agency
• Brokerage
• Compromise
• Gambling and betting
• Current account
• Insurance
• Bills
• Partnerships and companies
• Associations

Thailand Practice

In normal business law practice in Thailand, contracts require 2 competent witnesses. For acceptance by Thai court,Thailand contracts must either be originally drafted in Thai language or must be translated in Thai language.

In cases where contract disputes arise, contracting parties may resolve it through the court system or alternate dispute resolution such as arbitration. A court complaint is usually preceded by a demand letter or “notice”. Many contracts specify mediation or arbitration prior to or in lieu of filing a case with a Thai court.Thailand has a special court of International Trade and Intellectual Property. Generally, contract disputes in Thailand are in either the international court or provincial court or in arbitration sessions.

Read more on Thailand contracts.

A Thailand law firm specializing in Thailand company registration that also provides accounting and regulatory services is appropriate to provide centralized corporate secretarial services:

Thailand Company Operation Start-up

• Registration
• Licenses, Accreditations  and Permits
• Immigration
• Contracts
• Regulatory affairs
• Advising on The Companies Act (current and proposed)

Annual Compliance

• Maintaining company records
• Updating and maintaining statutory registers, i.e. of members, of directors, and registered charges
• Preparing and filling reports with local registry
• Liquidation of companies
• Tax and Accounting