The US-Thai Treaty of Amity allows U.S. citizens to hold a majority share for foreign companies in Thailand and receive national treatment, which means they can be exempted from the restrictions under the Alien Business Law of 1972. GPS Legal can assist in the process of setting up a company under this treaty.
The treaty allows US citizens to manage and own companies in Thailand without needing majority Thai shareholders. This is a great benefit because it means that US companies can avoid many of the restrictions placed on other foreign companies under the Alien Business Act of Thailand.
Amity treaty companies can also hire American employees without needing work permits (though a company must have at least two authorized American directors). It seems likely that the government will “grandfather in” businesses engaged under the Treaty of Amity in order to maintain this arrangement.
To take advantage of these benefits, the company must file specific paperwork with the Commercial Services Office and then have the documents verified by the Department of Business Development. This process can be time consuming, and it is wise to get the help of Plizz to ensure the process goes smoothly. Plizz can also discuss the drawbacks of registering under the Treaty of Amity with you in more detail, so that you can decide if this is the right option for your business.
An American company wishing to operate under the Treaty must first verify its US nationality. The commercial service of the American Embassy in Bangkok will issue a letter to that effect, which must then be presented to the Ministry of Commerce to get a business operation certificate. This process typically takes less than a month.
This applies to both new and existing companies. A notarized copy of the company’s certificate of incorporation and an affidavit stating the name, citizenship, address and nationality of all directors must be submitted.
It is important to note that while a company registered under the US-Thai Amity Treaty can do almost any type of business in Thailand, it may not own land. It also must hire four Thai employees, pay their Social Security and comply with work permit regulations. In addition, the company must have a minimum of 2 million Baht in registered capital. GPS Legal can go over these requirements in more detail with clients.
Despite the advantages, there are some limitations associated with companies incorporated under the US-Thai Treaty of Amity. Companies with a majority of American shareholders, or that are wholly owned by American citizens, receive national treatment and are exempt from most restrictions on foreign investment as set forth in the Foreign Business Act. Documents must be certified at the Commercial Services Office at the US Embassy in Bangkok to obtain this protection.
These companies cannot engage in inland communications or inland transportation; fiduciary functions; banking involving depository functions; or domestic trade in indigenous agricultural products. Furthermore, they cannot own land.
If a company wants to own land, it must consider other options or register under the Foreign Business Act. In addition, these companies have to comply with other Thai regulations. Plizz can help ensure that the necessary paperwork is prepared and filed correctly to avoid any delays in the process. The entire process can take 4-6 weeks to complete, but a single mistake can cause it to be delayed for months.
In addition to allowing majority shareholding, the US-Thai Treaty of Amity also grants national treatment for American companies in the country. This means that American firms can operate in Thailand on the same basis as Thai investors without worrying about many of the restrictions put into place by Thailand to limit foreign investment.
If you decide to start a business under the US-Thai Treaty ofAmity, you must obtain a certificate of business operation from the Ministry of Commerce in order to register your company as a foreign enterprise in Thailand. This process can take about a month. You will need to submit notarized copies of your passport and your parent company’s passport as well as information regarding your company such as its name, address, authorized capital, number of shares and par value, the total number of shareholders, their nationalities, and the amount of shares held by each shareholder.
In order for a US-Thai Treaty of Amity company to sponsor a work permit, the company must have at least THB 2 million in registered capital and hire four Thai employees who are paid their salaries from this registered capital. Plizz’s legal team can discuss the benefits and drawbacks of registering under the US-Thai Treaty in more detail with you.
Registering a company under the Thailand Board of Investment provides tax and non-tax incentives. These include exemptions from corporate taxes for up to eight years and reduced import duties on raw materials and research costs. The resulting reductions can save you significant amounts of money.
However, BOI-promoted companies must regularly report to the Department of Business Development and comply with the BOI’s inspections. In addition, they must show proof of funds and secure visas and work permits for their foreign employees and directors.
The Board of Investment is an organization that aims to promote direct foreign investments in Thailand. It devises investment policies and provides incentives to attract investors. The government also protects the business interests of BOI-promoted companies. This is done by ensuring that they follow the terms and conditions of the certification.
In addition, a company that is BOI-promoted can enjoy tax privileges. These include exemptions or reductions of import duties on raw materials and equipment. It can also benefit from a streamlined e-expert process for visas and work permits for foreign employees.
BOI-promoted companies must also observe the Thai laws in terms of accounting and reporting. They must report on their social security contributions, withholding taxes and value-added taxes, and conduct yearly auditing. Additionally, they must notify the Office of BOI within 10 working days when a change in operations occurs. They must also obtain permission from the BOI if they wish to mortgage or sell or transfer machinery that was imported at an exempted or reduced duty rate.
The Office of the Board of Investment is a government organization that promotes direct investment in Thailand by devising investment policies and offering tax-based and non-tax incentives. In order to be a BOI-promoted company, a business must meet certain requirements and adhere to Thai regulations in relation to accounting and reporting. This includes meeting reporting requirements for the Social Security Fund, Value Added Tax, and yearly auditing.
The BOI-promoted company is also required to follow strict rules on exports and imports. It must notify the BOI in case it wishes to mortgage, sell, or transfer machinery that has been imported at an exempted or reduced duty rate, and must not use it for non-approved purposes.
BOI-promoted companies can enjoy a wide range of privileges, including corporate income tax exemptions, tariff reductions or exemptions on machinery imports, and free tariff treatment for raw materials and inputs. They can also bring in foreign skilled workers and experts, and their visas and work permits are processed within a day through the BOI’s One-Stop Service Centre for Visas & Work Permits.
The management structure of a company is one of the most important aspects in determining its success. It should be well-organized and effective to ensure the smooth running of the business. It should also be able to handle changes in the market.
The Thailand Board of Investment (BOI) is a government agency that promotes investments in certain sectors deemed to be beneficial for the economy. It offers a range of tax and non-tax incentives to foreign and domestic investors.
BOI-promoted companies have many privileges, including corporate income tax exemption, tariff reductions or exemptions on imported machinery, and permission to own land. In addition, they are exempted from the juristic person’s tax on dividends and interest.
The Juslaws & Consult Thai law firm has a dedicated team of lawyers who offer a full range of support for clients opening a BOI-promoted company in Thailand. They can provide advice on how to obtain the necessary documents and help you prepare your application.
The Thai government provides tax and non-tax incentives for companies that invest in BOI promoted activities. These incentives help develop regional economic hubs and foster local skills. They also support Thailand's goal of becoming a leading trading and investment hub in the region.
The BOI also promotes Special Economic Zones in ten border provinces, where foreign businesses can receive a host of tax and non-tax benefits. These include streamlined visa applications and waivers on restrictions on foreign land ownership. The BOI also has a 15-member "superboard" that oversees reform of the country's 56 SOEs.
In addition to the BOI's investment incentives, the U.S. Embassy in Bangkok offers a certification letter that allows US citizens and businesses to claim national treatment under the U.S.-Thailand Treaty of Amity and Economic Relations. These investors can enjoy a variety of business advantages, including exemption from corporate income tax for some years and reduced or waived import duties on machinery, raw materials, and supplies.
Setting up a Representative Office is one of the fastest and easiest ways for a foreign corporation to establish itself on the Thai market. Our company registration experts will assist you in preparing the required documents and guide you through the legal process.
The Representative Office operates service business on behalf of its Head office or an affiliated company, but cannot generate revenue or earn income. It can only report on movements in the Thai market and facilitate trade.
Foreign companies that are not able to meet the requirements for a foreign business license in Thailand but still want to do marketing or ensure quality control on products sourced from the country can establish a representative office. The office can conduct non-revenue earning activities but must report to the head office on movements of goods.
The office also must remit a specific amount of money back to the head office each year. In addition, the manager of the office must prepare an annual report on activities for the head office.
In comparison to a foreign business branch, the process for setting up a rep office is significantly shorter. Furthermore, the office is not required to follow the work permit ratio of four Thai employees for every foreign employee. The offices are also not subject to corporate income tax because they do not earn revenue. However, they must pay interest on remittances from the head office.
In the case of foreign companies that wish to explore the Thai market, but are not yet ready to make a business investment and risk their capital, the establishment of a representative office in Thailand can be a good solution. This type of entity does not require a Foreign Business License (FBL), and allows for the conducting of legally permitted activities without the requirement to earn income in Thailand.
Representative offices manage service businesses in Thailand on behalf of the head office or affiliated companies in other countries. The representative office cannot perform revenue-generating activities, accept purchasing orders or make offers for selling, nor negotiate with any juristic person established in Thailand. It is also not subject to corporate income tax, except for deposit interest from remitted funds from the head office.
The set up process for a Representative Office in Thailand is relatively fast and easy, and typically takes about a week. Tila legal can assist with preparing the required documents, which must be notarized and certified by the local Thai Embassy or Consulate, and should not be more than six months old at the time of submission.
Foreign companies that want to explore the market or conduct marketing can use a Representative Office. This type of office is not required to pay any taxes, assuming it does not engage in income generating activities.
This office can report on business movements in the country and source goods for the head office. It cannot, however, make sales or engage in any type of business negotiations with third parties.
The Representative Office must deposit a minimum amount of capital into Thailand to operate, which can be used for operating expenses. There is also a government fee and annual report.
Tila legal can help you prepare the necessary documents for the Representative Office, including a letter of appointment signed by the director of the foreign entity and a local manager. We will then verify that all the documents are correct before they are submitted. This process can take as little as a week. We can even arrange for a lawyer to handle the process for you.
A representative office in Thailand allows a foreign company to report on business movements in the country to its head office. It can also perform inspections and quality control of goods that the headquarters has sourced from Thailand. This is an attractive option for companies that want to enter the Thai market without investing in a full-blown local business.
In order to register a rep office, the foreign head office must submit a Letter of Appointment. A certified photocopy of the passport of the manager must be included, along with his or her personal ID and household registration. In addition, the manager must sign a declaration that he or she satisfies all qualifications and does not have a prohibited characteristic according to Section 16 of the Foreign Business Act. Once all documents are complete, the representative office can begin operating. It is not subject to corporate income tax, but it must deposit the interest on any funds remitted from its head office.
We can assist you in all steps within the Thai Limited Company Registration process including drafting and filing the Memorandum of Association, registering the company name and calling a Statutory Meeting. We can also assist you in obtaining any needed business licenses.
All companies must have at least three promoters who are to be the initial shareholders. There are governmental fees to be paid per share upon incorporation.
Objects of the Company are written in the Memorandum of Association (MOA). This is an important document that sets out a company’s fundamental principles and objectives at its time of incorporation. It is a legal requirement and should include essential details.
This document must be signed by all company promoters and directors on official forms with the corporate seal affixed. A MOA must also specify the company’s registered capital and share issue capacity, along with the names of its shareholders and directors.
A MOA must also establish that the company is a “juristic person,” meaning it is recognized as a separate legal entity. This is important because it means that the company’s debts are not the responsibility of its shareholders, and that any agreements between the company and third parties bind only the company. This is a major advantage of setting up a Thai limited company. It allows foreigners to have the majority of the voting rights and to be involved in management, while at the same time limiting their liability.
At least three natural persons must be the promoters (initial shareholders). The liability of shareholders is limited to the par value of the shares they have subscribed. The Company must have a head office located in Thailand together with the copy of House registration (Tabien Ban) number and Letter of Consent obtained from the land lord.
Once the company is registered it becomes a separate legal entity and is considered as an independent business. It can make agreements and commitments that are binding on third parties. However, any debts incurred by the company are the responsibility of the Company and not the shareholders.
The Company is required to prepare a financial statement every month and at the annual shareholders’ meeting it must be approved by the shareholders. The director must prepare a list of the shareholders holding shares at that time and a list of those who are no longer shareholders and submit it to DBD within fourteen days after the date of the last shareholders’ meeting.
In most cases, a company registration in Thailand requires that the business has at least the minimum registered capital required under Thai law. In order to evidence the injection of funds into a company, it is usually necessary for the shareholders to provide the Department of Business Development with a letter of certification from their bank. In some cases, particularly for foreign companies seeking to operate in sectors that require a Foreign Business License or promotion through the Board of Investment or that want to open a branch or representative office, the requirement may be more stringent.
The share structure of a Thai Limited Company must be defined in a memorandum of association filed with the application and during a statutory meeting. The number of shares must be specified along with their par value and paid up (shares can be constituted in cash or non-cash assets). Preferential vote rights and dividend allocations can be adjusted among the shareholders.
In order to establish a company in Thailand, you will need to convene a statutory meeting once the share structure for the company is identified and defined, the Memorandum of Association is approved and the Board of Directors and Auditor are elected. You will also need to submit an application to register the company within 3-months from the date of the Statutory Meeting together with the relevant Governmental fees.
During the process of preparing an application, you will be required to submit details of shareholders including their present and permeant address. You will also need to provide information pertaining to the company’s finance and business objectives.
Once the company has been registered, you will need to prepare an annual financial statement and submit it to the Department of Business Development (DBD), along with copies of all shareholder’s records. In addition, you will need to display a company name board in its head office and any branch offices within 30 days from the date of registration.
A Last Will allows you to choose your Legal Heirs and also outline specific wishes. This will save your loved ones from expensive legal battles after your death.
Under Thai Law a Will must be written by yourself and signed in front of two witnesses. If it is not, it may be declared void.
Estate planning involves arranging a legal plan to dispose of assets in the event of death. The plan is typically drafted by an attorney to meet the client’s objectives and comply with Thailand inheritance law. This may include setting up trusts, joint tenancies and share transfer agreements.
It is important for foreigners with assets in Thailand (including land, bank accounts and shares) and heirs in other countries to make a Thai will. If a person dies without a will, the state will decide who can benefit from the estate according to the laws of intestacy.
A properly drafted will allows the testator to freely designate his/her heirs. This differs from other countries’ laws which reserve a portion of the heritage for protected heirs. It is important to consult a lawyer experienced in probate and succession when drafting a Thai will. The process is supervised by the court and is designed to project the wishes of the testator while complying with Thai laws.
A Thai will should be written and signed, with the testator and at least one witness, in the presence of an official Kromakarn Amphoe. This is the most secure form of a will in Thailand and makes it more difficult to contest.
The testator can choose his or her heirs and specify the distribution of their inheritance. This is called testate succession. In contrast, if a person dies without a will (intestate) the state decides who will benefit from their estate. The surviving spouse is considered a statutory heir and is entitled to a share of the estate depending on their agreement.
Having a legal will in place means that your wishes are respected soon after your death and can avoid family disputes. It also helps to speed up probate and the process of transferring your property to your heirs. This can save time and money in the long run. This is especially important for foreigners who own real estate in Thailand.
When a person dies without a will, the state will determine who inherits the property. This process is called probate. The court will try to balance the interests of the deceased and the genuine heirs. The law also seeks to safeguard the property of the deceased and the creditors of the estate.
In Thailand, if you want to transfer or inherit any assets you must file a petition with the court. The request will require you to present a large number of documents. You must also be physically present in Thailand or appoint a lawyer whom you can trust - all the documents will need to be authenticated and translated into Thai.
A proper will lets you choose your heirs and clearly outlines your wishes. If you have properties in both Thailand and your home country, it is advisable to make separate wills. You can also own land in Thailand through usufruct, similar to a life estate.
When someone passes away in Thailand their property and assets must be allocated to the heirs as stipulated in their Thai Will or the law on Intestate Succession if there is no will. This is the time when a good lawyer who understands inheritance laws is essential.
Inheritance law (Clauses 1599 and 1633 of the Civil and Commercial Code) stipulate that an estate administrator must manage, protect, distribute and handle inherited property according to specific rules. This includes preparing the estate list, arranging the funeral and settling any debts.
When it comes to a foreigner who inherits land or other immovable property in Thailand, the process and details can be complicated. It is advisable that the foreigner makes 2 Wills; one for their home country and a separate Thai Will. In this way it is easier to have their wishes complied with. They can also avoid paying double inheritance tax. A Will can be written in a foreign language but must follow Thai law.
If you are injured on a boat tour or excursion in Thailand that was not your fault you could be entitled to compensation under Thai law. Our professional Thailand injury lawyers are able to help you with your claim.
Generally speaking, compensation aims to put claimants back into the position they were before their injury. It also involves awarding expenses and damages for loss of earnings, both present and future.
If you have been injured on a tour or excursion that was organised through your holiday package, it’s important to report the incident to the local authorities. This is especially true if your injuries were sustained at a hotel, restaurant or other establishment.
If possible, try to preserve any evidence that may be available such as blood smears, photographs or clothing that was worn during the incident. Also, it’s important not to wash yourself or your clothes after an accident as this could affect any forensic evidence that might be present.
Under Thai law, compensation for personal injury is based on the principle that a person who unlawfully or negligently injures another should compensate them accordingly. As is the case in many common law countries, Thailand courts generally award compensation for tangible as well as intangible factors such as pain and suffering. A reputable personal injury lawyer can help their clients define the extent of these damages.
Every year a significant number of tourists fall victim to accidents in Thailand. Some are injured in a boat tour of a southern island, others in cars or vans in hectic Bangkok. In many cases, insurance does not cover the actual injury. These people may consider making a personal injury claim.
According to Thai law, a personal injury claim may be made for any act or omission that causes unlawful and negligent injury to the life, body, health, liberty, property or rights of another person. The offending party is obliged to make compensation.
Intangible damages are awarded for pain and suffering, but in Thailand these awards can be more restrained than in other common law jurisdictions. For example, a compensation award may not include expenses for medical treatment, future earnings and benefits, or lost enjoyment of activities. The Court will assess the appropriate level of compensation for each individual case.
In countries where the legal system is based on common law, damages awarded for personal injury cases can reach astronomical levels. In Thailand, the awards for various intangibles such as loss of consortium and pain and suffering are much more restrained.
Depending on the circumstances, the injured party may also be held liable for damages under the Law of Tort, including expenses for medical malpractice and compensation for lost income, loss of work capacity for the present or future as well as losses due to diminished quality of life. Damages to a victim’s family and other legal beneficiaries can also be awarded.
In addition, the injured person might have contributed to the accident, in which case the amount of compensation they can receive from the liable party will be reduced. A professional Thailand injury lawyer should be able to help you ascertain what laws govern a particular case, whether it is a civil or criminal matter.
A personal injury case in Thailand is a civil matter and falls under the umbrella of tort laws. The Thai civil and commercial code stipulates that any person who wilfully or negligently unlawfully injures the life, body, health, liberty or property of another person shall be liable to compensate the victim for his or her damages.
Compensations awarded differ depending on the gravity and circumstances of the incident. This includes expenses for medical treatment, loss of earnings (present and future) and other non-pecuniary losses.
While foreigners can file a personal injury claim in Thailand via a power of attorney, it is essential that the applicant physically appear at all court hearings. This is especially important if the case involves a cruise ship accident or other cases that happen abroad and are outside of the jurisdiction of Thai courts. This is to ensure that the case has a good chance of being a successful one.
Despite Thailand’s commendable healthcare system that offers low-cost treatments and state-of-the-art facilities, the country is not immune to medical malpractice claims. Medical malpractice covers unskilled, inadequate, and neglectful treatment as well as failure to provide for possible and known health risks.
Whether it is a hospital negligence claim or dental malpractice, the compensation awarded typically depends on several factors. The legal system in Thailand gravitates toward limiting general damages to quantifiable losses.
As Thailand becomes a major destination for medical tourism, a growing number of patients are dissatisfied with their procedures. Unfortunately, their complaints are rarely publicized, and obtaining compensation is often difficult. It is often necessary to hire a lawyer with experience in malpractice cases in Thailand and to be able to document that the doctor or hospital actually committed medical negligence.
Malpractice refers to the act or omission of a medical practitioner that results in Personal injury or death to a patient. It can include anything from improper diagnosis to inadequate treatment. It can also include negligent or unethical conduct such as performing unnecessary procedures on a patient.
Medical Malpractice claims can be brought in civil and criminal courts. The civil law states that a claim must be filed within one year from the date that the wrongdoing became known or ten years from the day it was committed. However, some claims may be joined to a criminal case, extending the statute of limitations.
Although medical malpractice lawsuits have increased with the rise in the number of tourists traveling to Thailand for affordable yet high-quality treatment, the country’s doctors are still unafraid to perform risky surgical procedures. Many patients from the West are eager to have experimental surgeries that can improve their quality of life, and Thai doctors are willing to take on the risks.
When a doctor commits professional negligence, victims should consult with a Thailand medical malpractice lawyer to file a claim and get compensated for their losses. Generally, medical malpractice claims must be made within one year from the date of injury or death. However, there are exceptions such as when a case falls under the sphere of criminal law which has a longer statute of limitations.
It is important for victims to have evidence that proves the doctor failed to meet the established levels of standard medical practice, resulting in injuries or death. The court system also gravitates toward limiting general damages to quantifiable losses, and the award may not include compensation for pain and suffering.
As Thailand’s medical industry grows to become a major hub for overseas patients, it is not uncommon that some medical tourists will experience dissatisfaction with their treatment. As a result, the number of Medical Malpractice cases have risen, as has the need for Thailand negligence lawyers.
Generally, medical malpractice claims in Thailand are considered as civil proceedings under the law of liability for wrongful acts. Under this, such claims should be instituted within 1 year from the date that the injury was discovered to the injured party. Nonetheless, some medical malpractice cases might fall under criminal laws and thus have different prescriptive time limits.
In general, courts in Thailand tend to limit general damages in malpractice claims to quantifiable losses which typically comprise of expenses and loss of income, both present and future. It is rare that a court will award compensation for “intangible” losses such as pain and suffering and emotional shock. This is one reason why it is important to work with a Thailand malpractice lawyer.
Despite the medical tourist boom, most people have no idea that Thailand has relatively weak legal mechanisms to protect injured patients. What many hospital and medical tour companies gloss over in their slickly produced websites is that it is very difficult for foreign patients to seek redress or compensation for injuries from their surgeries in the courts, regardless of how bad the results are.
Generally, when compensating victims of medical malpractice in Thailand, courts will award damages based on quantifiable financial harm such as the cost of hospitalisation, rehabilitation and loss of income. Intangible losses such as pain and suffering are not awarded.
Unlike Western countries, where doctors are required to carry high liability insurance rates, Thai doctors pay very little for their malpractice policies. This helps to keep healthcare costs in the country low, but also has consequences for foreign patients. When a doctor commits professional misconduct, the court will take into account the severity of the offense, the doctor’s mitigation submission and documents, and past records in determining an appropriate sanction.
Disputes in Thailand arise from numerous commercial and contractual issues, including disputes concerning intellectual property rights. There are also complex foreign employment laws and international trade customs that must be considered when dealing with employees in Thailand.
Recently, the Philippines requested authorisation to suspend trade concessions in light of Thailand’s refusal to bring its AD/CVD measures into compliance. The request demonstrates that bilateral discussions remain an option for parties to resolve trade disputes.
Litigation for a trade dispute before Thai courts is often lengthy, with the prevailing parties incurring significant legal fees. Lawyers’ fees are not entirely recoverable by the prevailing party as the Thai law views them as costs associated with the litigation rather than damages.
Arbitration offers a more rapid resolution to trade disputes in Thailand and is usually cheaper than court proceedings. However, it can be difficult to enforce a mediated settlement agreement outside the courts.
The establishment of the Intellectual Property and International Trade Court has numerous implications for the country’s innovation-driven economy, as it serves as a deterrent against intellectual property infringement and unfair trade practices and promotes a culture of respect for the rights of creators and innovators. It also reflects the government’s commitment to safeguarding the interests of businesses and ensuring Thailand’s participation in global trade arenas. It is therefore worth considering incorporating arbitration and mediation clauses in your commercial agreements with Thai companies.
The establishment of the Intellectual Property and International Trade Court marks a significant milestone in Thailand’s effort to promote innovation, foster creativity, and provide a level playing field for businesses. The court serves as a deterrent against intellectual property infringement and unfair trade practices, which can have detrimental impacts on industries and the economy at large.
In addition, the court is expected to be a valuable tool in raising awareness on intellectual property rights and fair international trade practices through the holding of seminars and workshops. This is particularly important as Thailand aspires to become a leading hub for research and development, creative endeavors, and cutting-edge technologies.
It is possible for interested parties to appeal the final determination of an AD or CVD investigation to the Central Intellectual Property and International Trade Court. However, it should be noted that such an avenue is rarely used in practice given the high costs and time consuming nature of litigation in Thailand.
In addition to court proceedings, arbitration offers a more conciliatory and less adversarial approach to dispute resolution, particularly for foreign litigants. It is also more cost-efficient than court litigation.
Nevertheless, the judicial system in Thailand remains severely overburdened and it can take years to reach the point where a judgement can be obtained. For this reason, the judiciary encourages the use of alternative forms of dispute resolution.
For example, THAC actively promotes the insertion of mediation clauses into expatriate agreements. However, the effectiveness of such an approach may be compromised by the absence of a universally recognised framework for the direct enforcement of international mediated settlement agreements. This gap is something that the new 2019 UN Convention on Mediation aims to address. Also, class action arbitrations have yet to gain traction in the country.
While litigation is the default option in Thailand, there are alternatives. Mediation is a more informal process that facilitates communications between parties with the aim of reaching an agreement to resolve the dispute. The process can take place either outside of the court, or as part of a court-supervised proceedings.
Increasingly, disputes in the energy, mining and infrastructure sectors are referred for mediation, as a solution to case backlogs in the courts. In addition, parties may choose to include mediation in their contracts.
R & T Asia (Thailand) Limited has an experienced dispute resolution team that handles arbitration and mediation proceedings including cases involving international trade issues. Its team is led by Surasak Vajasit, whose practice includes labour law and regulatory matters. It also includes Pakpoom Suntornvipat, whose expertise covers corporate/commercial and customs matters. The team also represents clients in challenges to government decision-making. They have experience in advising on international dispute resolution and negotiating with regulators.
Disputes between employers and employees can arise from a variety of reasons. Specifically, issues with the terms and conditions of employment, such as standard working hours, wages and fringe benefits are common.
Employees can bring labour disputes to the department of labour protection and welfare where officials act as mediators. They have the legal authority to order the employer to rectify any circumstances that are at fault.
While Thai law does not require that employment contracts be written, it is highly advisable that they are so as to provide clarity and ensure compliance with strict labour regulations. Professional advice in drafting contracts can help avoid legal disputes with employees and ensure compliance with the law.
In addition to setting out the terms of employment, such contracts must clearly indicate whether a worker is employed on a fixed term basis or not. Contracts on fixed terms must also designate a predetermined employment period and specify that the employment may not be terminated before that termination date. In the event of a termination without cause, an employee must be paid severance pay.
Understanding the intricacies of Thailand’s labor laws is non-negotiable for any foreign company looking to operate in this country. A failure to comply with the rules can result in substantial statutory payments to terminated employees – compensation that can amount to more than 25 months of an employer’s highest wage rate.
Employees and contractors are categorized differently in Thailand. Employers need to be aware of the differences between the two, so they can avoid fines and penalties.
Misclassification can be accidental or intentional. It can happen when an employer doesn’t understand the laws of their country or when a company hires contractors to cut costs. In either case, it is harmful to workers and exposes employers to expensive penalties.
For example, misclassifying an employee as a contractor can result in a loss of benefits such as health insurance, severance pay, and payment in lieu of advance notice when they are dismissed. It can also deprive employees of worker’s compensation coverage and limit their rights to take sick or vacation days.
Contractors, on the other hand, can be paid for each project they complete rather than a fixed wage or salary, and they pay their own income taxes and social security contributions. This means that they are not entitled to the same benefits as full-time employees in Thailand.
The Labour Law allows for both verbal and written employment contracts, but the former is recommended for clarity. Contracts must align with the provisions of the labor law, which outlines minimum wage rates, working days and hours, as well as other relevant issues.
If either party is dissatisfied with the terms of their contract, they can submit a labor demand to the Labor Ministry. This triggers a three day period of statutory negotiation. If the parties fail to reach an agreement during this time, the labor dispute becomes a Labor Case.
Workers in Thailand have minimal protections against exploitation and abuse. This may be because of weak unions, a culture of anti-union discrimination supported by the state, and the fragmentation of Thai enterprises. However, the recent wave of protests has seen a growing mobilisation of worker groups. Labor NGOs can play an important role in connecting workers across industries and promoting worker-led demands for democracy.
The terms and conditions of employment are covered by multiple labor laws in Thailand. For example, the Labor Protection Act protects employees’ rights with respect to working time per day and week, overtime payment, relocation of workplace, severance pay and termination clauses. Foreign companies operating in the banking, finance and technology sectors should ensure that their contracts with their Thai employees align with the local labor law.
It is critical to correctly classify whether workers are full-time employees, independent contractors or a combination of both. Failure to do so can lead to disputes and potential legal implications.
It is also important to understand the processes involved in a worker’s grievance and conciliation with their employer. Disputes may be resolved through mediation or litigation in court. It is highly recommended that companies in the real estate and construction industry include a structured dispute resolution clause in their contracts. This will provide greater clarity to both parties in the event of a labour dispute.
Information about the taxes and fees associated with property title transfer in Thailand. This could include details on transfer fees, particular business taxes, stamp duty, and withholding tax.
Chanote (Nor Sor 4 Jor) is the most credible type of land deed and grants the holder full rights to deal with or utilize the property. The document is backed by the Land Department and has precise boundaries.
The N.S.4.J or Chanote deed is the only land title that entitles true ownership of a piece of land in Thailand. It is an accurately surveyed and GPS plotted piece of land and is marked by unique numbered survey markers set in the ground. It is commonly found in the more developed areas of the country and allows for legal acts to be undertaken upon it such as selling, leasing, and mortgages.
A Confirmed Certificate of Use is another type of land title deed in Thailand. It includes all the transaction records for a parcel of land including sales and mortgage records and also allows a grant of rights to third parties such as a long-term lease or usufruct. However, owners of a Confirmed Certificate of Use only have one year to evict squatters from the property before they lose their rightful ownership through hostile possession.
As a foreign investor, the most important document you can look for when purchasing land is the Nor Sor 3 Gor. This gives the right to occupy a plot of land and can be sold, transferred or mortgaged. However, it does not include a specific boundary so you need to know exactly where your property starts and ends by doing a ground survey or checking with neighbours.
A black Garuda appears on this document which is also known as a Certificate of Use. This title deed is more accurate than the Nor Sor 3 as the land areas are measured and set using satellite image and have their boundaries clearly marked.
It is still not a full title deed and cannot be registered for rights such as usufruct or a lease but it is the best that one can get without having to wait until it is changed to Chanotte. It can be upgraded into a Chanote deed by simply filing a request with the Land Department who will then carry out final official measurements of the land area and place official markers.
As a foreigner looking to buying property in Thailand it is important to understand the various types of land title deeds available and how these work. The Chanote, Nor Sor 3 Gor and Nor Sor Sam are the most common title deeds that you will encounter on the market.
A Nor Sor Sam, also known as a Gor Sor 4 Jor, is a full title deed document and is the only one that gives the holder full rights to the land mentioned on the deed. It is the most valuable type of land title.
The Nor Sor 3 Gor is a partial title deed that provides proof of ownership and can be used to register rights (sale, mortgage etc.) and for land surveying purposes. It can also be upgraded to a Nor Sor Sam.
If the buyer is unable to make it to the land office for the transfer, they can appoint a lawyer or other representative with power of attorney. The POA must follow the official form provided by the land office and be notarized by a Thai lawyer or the embassy of their home country.
The POA can also be signed by a non-lawyer, but it should be carefully drafted and certified to ensure that it does not give the representative too much authority. It is best to consult with a lawyer who has experience with these transactions in order to have an effective and valid POA.
When a foreigner purchases land, they must register their title at the Land Department. This is a simple process and can be done remotely, but it requires the proper paperwork. This includes a sales agreement, ID documents, and a copy of the original title deed (Chanote). The transfer must be approved by an officer at the land office before it is complete.