In Thailand, registration of a foundation is mainly governed by “The Civil and Commercial code, B.E. 2535 (1992)” and “The Ministerial Regulations of Regulations, Operation and Registration of the Foundation B.E. 2545 (2002)”.
Article 110 of TCCC specifies a foundation as “A foundation consists of property specially appropriated to public charity, religious, affairs art, scientific, literary, education or other purposes for the public benefit and not for sharing profit, and has been registered under the provision of this Code.
The property of a foundation must be managed for implementing the objects of that foundation and not for seeking interest for any person”. Therefore, not all types of charitable are eligible for the foundation. The purposes are, instead, limited to public purposes as mentioned above. Moreover, the foundation is not allowed to use for any person own purpose or for personal goals.
Referring to article 110 of TCCC, characteristics of a foundation in Thailand are as follows;
- Special allocated assets: In order to use as operating fund of a foundation
- Objectives: The above fund, allocated assets, is to be used solely for the objectives of the foundation and not for any person own purpose/interest.
- Not seeking for personal interest: Even the foundation is allowed to earn or generate revenue, it has to be strictly used for the objectives of the foundation itself and not divided or shared between its members.
- Registered as a Juristic person as specified in article 110 and 122 of TCCC.
However, the above is merely an overview of a foundation. There are details in relation to registering of a foundation ie. name, office, objectives, allocated assets, directors, member etc to be further discussed.
Category: Company Law
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