In September, Thailand’s Ministry of Health passed a new law requiring plain packaging and labeling for cigarette products.

The regulation, implemented under Thailand’s Tobacco Products Control Act, places restrictions and requirements, is the first of its kind in Asia.

The law states that the name of the manufacturer must be labeled clearly on both sides of the package with standard font type, size, and color.

Health warning photos must now also be printed on both sides of the package, covering 85% of the package, and with a different warning picture on each side.

The brand of the cigarette and specific type must also be clearly labeled in a specific font type, size, and color as well as must be printed on at least two sides of the product packaging, but not more than three.

There also must be two warning messages on the cigarette packaging that take up at least three-fifths of each side.

Thailand businesses have until December 8^th to comply with the new packaging regulations or they will face a fine of up to 40,000 baht.

Thailand has issued a variety of anti-smoking laws in just the past year, including controversial regulations that prohibit smoking in households if it causes a family member harm as well as bans on smoking in certain public areas.

Read the full story here.

Rice exporters in Cambodiaare hoping to anticipate international demand and impact the organic rice market by doubling organic rice exports this year, according to The Phnom Penh Post.

Cambodia only has two organic rice exporters, and the Cambodian Center for Study and Development in Agriculture (CEDAC) is planning on shipping 1,000 tons of organic rice in 2015—a doubling over 2014.

Chaninat and Leeds’ Thailand business lawyers specialize in assisting Thai and international small and medium sized businesses with company registration and business litigation in Thailand.

CEDAC’s export officer, Sou Sarorn said thatCambodiahas “a good reputation that impresses buyers,” especially theUnited Statesand Hong Kong, but also the emerging markets in theMiddle East.

Though international demand for organic rice may be rising, the export represents a slight fraction ofCambodia’s overall 380,000 tons of rice exports in 2014.

Read the full story here.

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A UK branch of Krispy Kreme created an activity and ran an advertisement promoting “KKK Wednesday,” reports The Daily Mirror.

The store mistakenly used the abbreviation “KKK” most commonly associated with the Ku KluxKan, a society of white supremacists inAmerica. The abbreviation was intended to stand for Krispy Kreme Klub as part of the store’s promotion of half-term children’s activities.

The promotion was posted to Krispy Kreme’s UK Facebook page, where some of its 200,000 followers were quick to point out the blunder.

Chaninat and Leeds’ business attorneys have decades of experience assisting national and international corporations and small businesses with Thailand company registration.

A Krispy Kreme spokeswoman issued an apology on behalf of the store, and said the material was withdrawn and an internal investigation had been launched.

Read the full story here.

Thailand Business Law Center (TBLC) is presenting a series of video interviews with business entrepreneurs in Thailand.

Entrepreneurship has long been the main vehicle of economic growth in Thailand. With the objective of promoting small and medium enterprises in Thailand and the creative  spirit of entrepreneurship, TBLC, in conjunction with Thai Law Forum is conducting a series of interviews. TBLC has interviewed the entrepreneurs behind some of Thailand’s most interesting businesses including Firehouse, an American restaurant on Sukhumvit Soi 11; Raitongs Organics Farm; Star Crystal Salt, a Himalayan crystal salt import company; and Wear You Want, an online clothing company.

Watch the interviews below:

Hong Kong’s has introduced new Companies Ordinance which have been welcomed according to the South China Morning Post.

The new ordinance is intended to make it even easier for small companies to conduct business in Hong Kong.

 Chaninat & Leeds offers expert advice in Thailand company registration and company law 

Most importantly, the requirement of a nominal value of shares has been removed. The memorandum of association has been abolished and merged into the articles of association.

The new law also allows companies to dispense with annual general meetings by unanimous shareholder consent and also facilities virtual meetings using conferencing technology.

Read the full report here

VW has announced that it plans to open a factory in Thailand reports The Bangkok Post. It is hoped that the opening of the factory will help to narrow the gap with Toyota Motor Corp in Southeast Asia.

The Bangkok Post further revealed from sources who wished to remain unidentified that the Germany-based manufacturer is seeking to participate in a government programme offering tax exemptions for automakers investing at least 6.5 billion baht (US$200 million) in local manufacturing.

VW are one of the very few car firms who don’t have a factory here already.

The Board of Investment (commonly referred to as “BOI”) is a division of the Thai government intended to promote business start-ups and business projects in areas of industry and enterprise that are deemed desirable for the economic outlook of Thailand.

Industries receiving priority for Thailand BOI privileges are companies in high tech areas, manufacturing and exporting businesses and businesses showing good prospects for future growth.

Many smaller companies registering in Thailand  often assume that BOI privileges are only available to larger companies, such as Volkswagon. In reality smaller companies may also apply and receive BOI promotion provided they meet the BOI requirements.

Read the full story here 

Coin Desk has reported that the Bank of Thailand (BoT) may have changed its position on the  legal status of bitcoins in Thailand, suggesting that Bitcoin Co Limited can resume trading in Thailand.

Previously there were reports that the Bank of Thailand may have declared the use of bitcoins to be illegal in Thailand.

Despite the company’s lengthy absence from the market, David Barnes, managing director of Bitcoin Co LTD said that trading volumes have already returned to 2013 levels. “It’s about in line with, or a slight improvement from, where we left off in July,” he said.

According to Thailand business lawyers, Chaninat & Leeds , the Bank of Thailand issues laws and regulations concerning currency and financial transfers to and from Thailand. Banks normally require licenses  from the BoT documenting the transaction. According to Chaninat & Leeds  bitcoin transactions may present a practical problem for businesses in Thailand with regards to Thailand taxation and money laundering laws because there may be a lack of physical evidence such as receipts which could create difficulties when filing taxes in Thailand.

Read the full article here

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Thailand company law is similar to the company law of other nations. The capital of a limited company is divided in shares with a “nominal” or “par value” for each share based on the initial capitalization of the company. Company investors may however seek to issue shares for a par value which is lesser or greater than the actual capital contribution.

Under Section 1105 of the Thailand Civil and Commercial Code Chapter IV (Limited Companies Law Code) shares may not be issued at a lower price than their nominal amount.

Under Thailand business law, the issue of shares at a higher price than their nominal amount however is allowed under section 1106, if it is expressly stated in the Company memorandum. In such case the excess amount must be paid along with the first payment.

The first payment on the shares must not be less than twenty-five per cent of their nominal amount.

The Commerce Ministry have reported that 56 companies in Phuket have allegedly breached the Foreign Business Act (FBA) by using Thais acting as nominees to enable foreigners to hold a majority control.

 The use of “nominee” shareholders is expressly forbidden by the FBA.

Most of the suspected companies are owned by Russian interests, and are connected to food and beverage trading, and financial agencies.

Prior to the introduction of the act in 1999, it was common practice to utilize loan-pledge agreements as a method for non Thai minority shareholders to control majority Thai shareholders.  This entails the Thai shareholders borrowing funds from the foreigner and “pledging” the shares back as security. However, the FBA made this practice illegal. While enforcement of the Thai nominee prohibitions of the Foreign Business Act has been infrequent to date, this news serves as a clear warning say Thailand lawyers, that this is now something the authorities are taking seriously.

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