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Thai Limited Company Registration

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A limited company is the most commonly preferred business type in Thailand. It offers the benefit of limited liability, shielding shareholders from extensive financial exposure.

Registration of a Thai limited company involves filing a Memorandum of Association with the Department of Business Development (DBD). It requires providing details of the proposed business objectives, registered office address and identification documents of the shareholders, directors or promoters.

Company Name

This is the most common type of business in Thailand as it is easy to set-up and it offers limited liability for shareholders. It is similar to an LLC in the US or a Pte Ltd in Singapore or GmbH in Germany. It is also a very popular choice for foreign entrepreneurs as it provides a sense of comfort that they might not feel when establishing another type of business structure.

To establish a Limited Company, you will first need to reserve the company name with the Department of Business Development (DBD). The company name must not be identical or too similar to existing registered companies in Thailand and must end in ‘Limited’.

After reserving the company name, you will need to prepare and file the Memorandum of Association with the DBD. This document must include the company name, the province where the company will be located, the company’s objectives, the declaration that the liability of the shareholders is limited, and the names and details of three promoters. The promoters can be either Thai or foreign nationals and must own a minimum of 50% of the shares in the company.

Once the documents have been filed, you will need to obtain an official company stamp which must be applied on all legal documents and bank transactions. It also serves as a proof of the company’s authenticity and authority. The company must also comply with accounting and auditing regulations and submit annual balance sheets to the DBD.

Shareholders

The main advantage of this business structure is that it offers limited liability to the shareholders, which is defined by their share capital contributions. This makes it a popular choice for foreign entrepreneurs who wish to start a business in Thailand. Other structures, such as partnerships and sole proprietorships, do not offer the same level of protection.

In a private limited company, the promoters (shareholders) must be natural persons and may be Thai or foreign. The number of shareholders must be at least three and the maximum percentage of shares that can be held by foreign investors is 49%, depending on the type of entity.

ATA Services can help you to register a private limited company that allows you to maintain full control whilst maintaining a maximum of 49% foreign ownership. There are various ways of doing this, including setting up a nominee director or providing the nominee with Thai bank statements that show they have enough funding to pay for their shares.

The Articles of Association can include provisions for determining the voting rights of the shareholders and other matters affecting the company’s internal affairs such as weighted voting, restrictions on foreign directors and minimum shareholding requirements in order to qualify for certain business licenses. The company must also prepare share certificates and the shareholders’ register book. Annual shareholder meetings must be held within six months of the date of registration and at least once every 12 months thereafter.

Directors

A Thai Limited Company is a legal structure for business ownership that gives the shareholders a clear separation between their assets and debts and also makes it easy for foreigners to gain work permits for employees. As a result, a registered Thai company can seem more professional and credible to potential clients and partners. Depending on the intended business activities, the new company may need to obtain certain licenses or permits in order to operate. These are generally subject to restrictions in terms of foreign share ownership and directorship and minimum capital requirements.

The director of a Thai company is a key decision maker for the business. They are responsible for preparing and filing company documents with the commercial registry in Thailand, attending meetings of the Board of Directors and holding general assemblies. Directors are also obligated to keep records of the company and ensure that all shares have been paid for.

In addition, the law requires that at least one authorized director be chosen to sign documents on behalf of the company. This is akin to a legal representative and can be of any nationality residing in any country but it is recommended that a number of directors be appointed who reside in the country. This is especially important when the company is to apply for a work permit on behalf of a foreigner as the authorities need proof that the company has the financial capacity to support this process.

Registered Office

To register a business, it’s necessary to designate a registered office. This must be located in Thailand and must have permission from the property owner if it’s a rented location. It also needs to be a place that is readily accessible for authorities and stakeholders to visit. The company’s directors must be available to answer questions in person. If a director is a foreign national, he or she must have a valid passport and work visa for the country.

There are several different kinds of business structures in Thailand. The most popular option is a limited company, which offers liability protection for shareholders. This is a good choice for small businesses, as it doesn’t require a minimum capital amount and has a flexible management structure. It’s also easy to establish, and the minimum share requirement is low.

Once a company is registered, it must apply for and receive a tax identity card. It’s also required to follow accounting procedures specified in the Civil and Commercial Code, the Revenue Code, and the Accounting Act. In addition, the company must conduct an audit of its accounts and file a report with the Department of Business Development. A company bank account is also required to handle financial transactions. Choosing which bank and branch, what type of accounts, and who will sign are some of the important considerations.

Wills and Succession in Thailand

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If you die without a legal Will, your family will have to hire a lawyer in Thailand to complete court probate proceedings. This is time consuming and expensive.

If the deceased had no Will, his property will be distributed according to statutory inheritance laws. This article will cover the basic rules of succession in Thailand.

A Will is a legal document that outlines your wishes for the disposal of your property after death.

The process of inheritance and succession in Thailand is complex. It requires a thorough understanding of both statutory and testamentary succession. The latter, governed by specific sections of the civil code, allows individuals to dispose of their assets according to their desires, bypassing statutory provisions otherwise applicable in cases of intestate succession. In order for a Will to be deemed valid, it must clearly express the testator’s intentions and must be drafted in accordance with Thai law.

Heirs and beneficiaries must be carefully selected to ensure that the testator’s wishes are carried out. In addition, heirs must be prepared to work together and cooperate in the distribution of estate assets. If there is disagreement among heirs, the process can be prolonged. A knowledgeable lawyer can help facilitate the process and resolve disputes.

For foreigners with assets in Thailand, a Will is essential to safeguard their interests. However, the execution of a foreign Will in Thailand may be difficult. This is because the court must determine whether or not the document complies with Thai laws. It is therefore important to consult with a lawyer who understands the intricacies of Thai inheritance law. Our legal team can assist you with drafting and executing a Will that is legally compliant with Thai law and reflects your wishes for the disposition of your assets after death.

It is a good idea to make a Will if you own property in Thailand.

The main reason why a person should make a Will is to ensure that their last wishes are respected after death and to prevent family disputes. Having a properly drafted Will also makes the succession process much easier to settle.

It is important that a foreign national makes a Thai Will in order to protect their assets in Thailand, especially if they have children or if they own shares in a company. A lawyer should be consulted in order to draft the Will and make sure that it meets the requirements of Thai law.

A Will must be made in the presence of a district officer or at least two witnesses in order to be valid. There are three types of Wills: a private document, a public document, and a secret document. The latter is the most difficult to contest, but it must be signed and sealed in the presence of a district officer and two witnesses.

In the absence of a Will, inheritance law determines how property is distributed amongst heirs. The process can be complicated and time consuming, as well as being subject to disputes from heirs. A Will enables people to select their heirs and skips the statutory provisions that would otherwise apply in cases of intestate inheritance. Moreover, it can save on taxes as the Will is a clear indication of what should be passed on.

It is a good idea to make a Will if you have children.

For parents, one of the most important reasons to make a Will is to designate guardians for your children. Without a Will, the courts will decide who is responsible for taking care of your children after your death. Choosing guardians who share your values and are familiar with the needs of your children can help ensure that your children are well-cared for after you’re gone.

A Will also allows you to name an executor who will manage the court process for wrapping up your estate and making sure all of your assets are distributed according to your wishes. The person you choose to serve as executor will have a big job and will have to make many decisions, both large and small, about how to distribute your estate. Using your will to state your preferences will minimize family conflict and allow your executor to focus on making sure that everything is done right.

Your Will can also include a no-contest clause paired with at least some nominal gift to create a disincentive for one of your children from challenging your will in court. Often times, challenges to a Will are made because a child believes that you have been under undue influence and expressed wishes that weren’t really what you wanted.

Having a Will is especially important for foreigners who are close to or settled in Thailand because Thai law requires that heirs be designated based on the laws of Thailand and not the laws of your home country. This means that your family could face complicated legal proceedings and delay the distribution of your estate assets to your loved ones.

It is a good idea to make a Will if you have a spouse.

When it comes to succession, a well-drafted Will allows you to choose your heirs and structure the distribution of your assets according to your wishes. It also helps avoid family disputes and conflicts and ensures that your estate is properly managed and settled. In the absence of a Will, inheritance matters are left to the Thai courts who will decide how your estate should be distributed based on inheritance law.

This may lead to the outcome that is different from your expectations. It can also result in a delay in settling your estate. In addition, a court’s decision may be subject to appeal, which can further complicate the process and result in delays and unintended consequences.

Another benefit of a will is that it will prevent unnecessary taxation. The Thai government requires that all foreigners whose estates are in excess of 1 million Baht must file for estate taxation. The preparation of a will allows you to save on taxes and minimize your legal fees.

A will can include all of your property, including physical and financial assets. This includes your house, cars and other personal belongings, as well as retirement plans, life insurance policies, bank accounts, investment funds, and even digital assets such as logins and passwords to online accounts. In addition to a Will, it is important to make a Living Will which outlines your end-of-life wishes. This is a separate document that should be handed to your Health Care Representative so that they can act on your wishes if you are terminally ill or in a vegetative state.

Filing of Divorce in Thailand

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Divorce is possible if you both agree and can be registered at a government District office (Khet or Amphur). It could be recommended that you draw up a divorce settlement agreement with a lawyer before heading to the Khet.

Contested divorces require proving specific legal grounds under Section 1516 of the Thai Civil and Commercial Code. These include adultery, misconduct, and desertion.

1. Filing the Petition

If both parties agree to divorce, the couple can opt for an uncontested divorce. This type of divorce is easier, quicker and less expensive. The process can take a few months to one year to complete depending on the complexity of the case and how quickly the spouses can come to an agreement on all issues related to their divorce such as the division of assets, child custody in Thailand, alimony or joint-ventures.

If the couple cannot reach an agreement on all matters related to their divorce they can file a petition for a contested divorce. This requires both spouses to appear in person at the district office. The court will then evaluate the case and may issue a divorce judgment.

The court will also decide the division of assets and property, if necessary, based on the individual circumstances of each marriage. In a contested divorce the judge can also make decisions about parental rights and support for children.

The court can also determine which party is liable for any debts that were acquired during the marriage. It is important to note that Thailand is a community property jurisdiction so assets and property acquired during the marriage are considered to be community property (sin somros) while personal property (sin suan tua) remains owned by the individual. It is possible for the court to make an exception to this rule if a prenuptial agreement has been made and is not contrary to public order and morals.

2. Filing the Affidavit

Once the spouse who initiated the divorce has verified that the grounds are valid, the affidavit will be filed at the district office (amphur). Depending on the circumstances, the amphur may require the filing party to also bring a translator.

This step is necessary if the divorce is contested as it allows the other spouse to respond to the petition. The affidavit must clearly state the spouse’s name, address and signature. The spouse must also state whether the marriage has children or joint property. In addition, the spouse must state whether they want to receive alimony or maintenance.

If the spouses are both in agreement with all issues regarding their divorce, then they can opt for an administrative divorce rather than a court divorce. This is much cheaper and more straightforward but requires both spouses to be present at the amphur for registration. The spouses cannot be represented by a lawyer with this type of divorce.

If the spouses are not in agreement on some divorce-related issues, they can use alternative dispute resolution methods like mediation to reach a mutually acceptable solution. Using ADR is more cost-effective and quicker than litigation, and it is also less emotionally taxing. This option is especially beneficial if both parties are still working together and/or have children in common. However, it is essential to get legal advice to ensure that the disputed issues are legally resolved.

3. Filing the Notice of Hearing

If a couple is unable to come up with an agreement on their property division, the judge will set up a hearing to decide this issue. The court will review all of the evidence presented, and make a ruling. The court may award a specific percentage of the marital assets to one party, or it may divide the estate equally.

Regardless of the outcome, this process can take months or even years. During this time, the spouses are required to submit financial statements every month. In addition, the parties are expected to provide support for their children if necessary.

In Thailand, there are two ways to end a marriage: divorce by mutual consent or divorce by judgment of the court (saiban rikon). A contested divorce is where one spouse files for divorce and cites a reason from the ten legally defined grounds in section 1516 of the Thai Civil and Commercial Code.

A divorce by mutual consent is where both husband and wife agree to end the marriage. The spouses then register their divorce at the district office (“Khet” or “Amphur”) where their marriage was registered. The couple will need to present their marriage certificate, Thai ID, house registration certificate, and the foreigner’s passport. The registration bureau will then issue a divorce certificate to the couple. It is important that a couple consult with a family lawyer before registering their divorce at the district office.

4. Filing the Final Judgment

Divorce in Thailand can be a complicated process for many reasons, and it is important to have the right legal representation to help you navigate it. There are two different avenues for divorce in Thailand: a contested divorce and an administrative (uncontested) divorce. A contested divorce involves going through court proceedings, while an administrative divorce is easier and faster for couples who mutually agree to end their marriage and meet specific requirements.

If a couple agrees to an uncontested divorce they can register the divorce at the district office where they married. They must be physically present during the process. If they have children the courts will make decisions on custody and alimony. Couples may also choose to divide their assets based on their preference.

Aside from property division, there are other issues that can arise in a divorce case. For example, if a spouse committed adultery, the innocent party can request compensation from both their husband and their lover for the harm caused to them. Additionally, if a married couple has a child, the parents are obligated to provide for the child’s education, medical care, and general living expenses.

Finally, if an ex-spouse dies with financial debts from court judgments, those creditors must be paid before the estate can be distributed to the remaining heirs. It is always a good idea to have a family lawyer like TFL with you when you register your divorce.

Child Legitimation in Thailand

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Although Thai law states that a child is the sole legal offspring of their mother, biological fathers can establish parental ties through a process known as child legitimation. Fathers who complete this procedure can claim custody rights, provide financial security, and use their surnames for the children.

There are several ways to obtain this recognition, including marriage, court action, and government registration. Legitimization bestows significant benefits, including the right to inheritance.

Fathers Have Equal Rights and Responsibilities

While Thai law states that children are the sole legal offspring of their mothers, fathers can establish paternal ties and take on parental rights through a process known as child legitimacy. This process provides social acceptance and reduces the societal stigma associated with illegitimate children while also providing financial security for children through their father’s obligation to provide support.

Legitimation can be achieved through marriage, court action, or government registration of paternity. The result is that the father gains equal custody and parental power with the mother, the child can use the father’s surname, and he has access to benefits such as social security and inheritance. In the event that a father wishes to pursue child legitimacy, it is best to seek out legal assistance from an experienced Thai family lawyer.

A father can apply to register his child as legitimate voluntarily at a district office if the mother and child consent to this. The application must be made with the mother and the child present, and a statement must be provided from both parties stating that they agree to the legitimacy of the child. In the case that a father is not able to gain the consent of the mother or child, he can file for a court decision on legitimacy in the same way that a divorce petition is filed with a Thai court.

Fathers Have Custody Rights

Fathers who are legally recognized as children’s fathers can exercise custody rights and inherit property from their offspring. They also have a legal obligation to support their children until they reach legal age. The process of legitimation can be done through marriage, court action or government registration. Regardless of how a father acquires parental rights, he can then register it at a local district office.

Generally, the father must declare his intention to legitimize the child by signing his application in the presence of a registrar. The mother and child are then notified of the father’s application for legitimation. They can either object or express their consent within sixty days (or one hundred and eighty days if they are outside of Thailand). Otherwise, it is presumed that they do not consent to the father’s request.

Aside from acquiring parental rights, the father can also use the registration to prove his relationship with the child. Proof of this can include DNA results, photographs of the father and the mother together when she was pregnant, testimony that the father publicly reported that he was expecting a child with the woman, or evidence that he paid hospital bills or other expenses for the mother and her baby. This is helpful in case the father wants to apply for a visa or other benefits on behalf of the child.

Fathers Can Apply for Registration of Legitimation

While Thai law stipulates that a child is solely the legal offspring of their mothers, fathers who wish to establish parental ties have several options. They can do this through marriage, court action, or government registration of paternity. This process of legitimation reduces societal stigma associated with illegitimacy and also allows children to access benefits such as financial support from their fathers.

The first option is for the father to apply for registration of legitimacy at his local district office. This requires the mother and child to express their consent to the application in front of a registrar. If the mother and/or child do not object or provide their consent within sixty days (or one hundred eighty days if they are abroad), it is presumed that they have given their consent.

Individuals that register as the father of a child are considered to have parental powers until their children reach legal age (20). They may then apply for custody, which is subject to a court’s decision. If the father wishes to revoke the registration, he must file a petition with a court. This is a complex and time-consuming process. Fathers seeking to acquire rights and responsibilities for their children should seek expert advice on the best path forward. The father should be able to show that there is no legal impediment to registering the relationship with the child and that he has met other requirements such as the verification of his identity through DNA testing.

Fathers Can Change Custody

When it comes to child custody cases, the Thai court’s major policy concern is what is in the best interest of the children. The judges will often take into account the wishes of both parents but, in most cases, give sole custody to the mother. This is a result of the traditional family structure in Thailand, which focuses on maintaining strong and cohesive families.

Fathers are able to change custody in some cases. The process is not a simple one though. For a father to gain custody of his child he must first be legally recognized as the father, which can be done through marriage, court action or government registration. Fathers who wish to establish parental ties are encouraged to do so, as this helps to reduce the societal stigma of illegitimate children and can provide financial security for them through fathers’ obligations to pay child support in Thailand.

The legitimation process is a complex and lengthy procedure that requires the consent of both the mother and the child. The application must be made at a local district office and both parties must appear before a registrar to express their consent. If the mother or child do not appear within 60 days of being notified of the application, they are presumed to have objected to the father’s request and, therefore, denied legitimacy.

Child Support in Thailand

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Child support in Thailand is a parental responsibility and part of ensuring that children have the financial resources they need to thrive. A legal professional experienced in Thai family law can assist with navigating the process and advocating for an arrangement that prioritizes your child’s well-being.

Parents can settle child support issues through mutual agreement or a court order. The amount should be reasonable and cover basic expenses, such as education, healthcare, and food and shelter.

Enforcement

Under Thai family law, parents have a legal obligation to support their children until the child is of age. The amount of child support that must be paid is determined by the court based on the needs of the child, including food, shelter, clothing, medicines, and education. Child support can be settled through a written agreement or by a court order, and it is often included in a divorce settlement.

Disagreements over the appropriate amount of child support are common, and can result in lengthy legal battles. However, mediation is often available to help parents reach an amicable settlement. If the parties cannot reach an agreement, a court will make a determination based on relative incomes, expenses, and assets. The court will always consider the child’s best interests when determining a reasonable child support payment amount.

The courts take child support enforcement seriously in Thailand. Non-payment can lead to severe penalties, including fines and imprisonment. In addition to wage garnishment, the courts can also seize assets such as bank accounts to recover unpaid child support. This process can be especially challenging in cases where the parents live in different countries, and an experienced lawyer is critical for navigating these complex legal issues.

Modifications

Child support is an important aspect of Thai family law, and it is designed to ensure that children receive financial assistance from both parents regardless of their marital status or living arrangements. The legal framework governing these payments promotes fairness and equity by considering relative incomes, expenses, and assets when determining appropriate amounts. However, navigating these issues can be challenging. For more information, consult a reputable Thai family lawyer.

In Thailand, both parents are legally bound to financially support their children until the child reaches the age of majority or completes their education, whichever occurs first. This obligation can be established either by mutual agreement between the parents or through a court order. This money should cover the costs of raising the child, including food, shelter, clothing, medicine and education. It should not be used for the parent’s own benefit.

Single mothers are entitled to demand support from the father of their children, although unmarried biological fathers do not have custodial rights unless they legitimize their relationship with the child in a district office. Both types of parents can also resolve their child support issues within a divorce case by agreeing on a set amount.

While non-compliance and international issues can complicate matters, a knowledgeable family lawyer can help you understand your legal options and ensure that your child’s needs are met.

Non-custodial parents

Under Thai law, both parents are obligated to provide financial support for their children until they reach legal age. This can be settled through a mutual agreement or by court order and should cover basic expenses such as food, shelter, clothing, medicine and education. However, the money cannot be used for the parent’s own benefit.

When calculating child support, the court takes into account the relative incomes of both parents as well as the cost of raising the child. The court also has significant discretion in determining the amount, balancing the child’s needs with the parent’s financial capabilities. If the non-custodial parent’s income fluctuates, they can file a petition for modification.

While the process is simple in theory, there are several challenges with implementation. For example, enforcing child support can be difficult if the non-custodial parent is self-employed or has variable income sources. It is important that all parties work together to develop and implement a strong enforcement system for child support.

The Family Court monitors compliance with child support orders and can take action to enforce the terms of an order, including wage garnishment, property liens, seizure of assets, and suspension of certain licenses. This provides a strong incentive for both parents to comply with the terms of the order and ensures that the children receive the necessary financial support they deserve.

Foreigners

Under Thai family law both parents are legally bound to financially support or maintain their children until they reach legal age (20 years old) or complete their education. This obligation can be settled by mutual agreement or through a court order and should cover expenses like food, shelter, clothing and medicine. It is important to note that the child support should not be used for the parent’s personal benefits.

Unmarried biological fathers in Thailand do not have custodial rights unless they acknowledge themselves as the father through the process of legitimization which can be done through a district office. This step is necessary to protect the rights of the father and ensure that the child’s birth certificate reflects his name and details. It is also a prerequisite for visitation rights.

When it comes to disputed child support cases, the courts generally look at the relative incomes of the parties, as well as their expenses and assets to determine an appropriate amount. If there is no agreement, the court can use international conventions to enforce support payments. In addition, a foreign noncustodial parent may have the option to obtain a visa based on his or her dependency on supporting their Thai child. However, this type of visa is not available to everyone and requires specific documentation. For those seeking this type of visa, it is highly advisable to consult with a lawyer.

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