Foreign Business License: Regional Office

Foreign multinational companies with business operations in the ASEAN region or Asia may consider setting up a regional office in Thailand as a support hub for their corporate network in the region. Nevertheless, the regional office is considered a “service” business within the definition of category (21) of List Three annexed to the Foreign Business […]

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Foreign Business License: Installation, Repair, and Maintenance Services

A common business activity for foreign multinationals that set up business operations in Thailand is installation, repair, and maintenance services. This refers to the installation, repair and maintenance of machinery, tools, and equipment used in the manufacturing process. However, this business activity falls within the scope of Category (21) of List Three of the Foreign […]

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Technology Transfer Plan Guidelines for Thai BOI

Foreign investors in Thailand who will be applying for a license in order to engage in a restricted business activity according to the Foreign Business Act of 1999 must prepare a technology transfer plan. Section 5 of the Foreign Business Act requires that technology transfer constitute one factor to be considered in permitting foreigners to […]

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Thailand Foreign Business License: Rental Services

“Rental services” refers to procuring immovable property, such as land or office space, or movable property, such as machinery, equipment or motor vehicles for lease to customers. Rental services falls within Category (21) of List Three annexed to the Foreign Business Act of 1999. Therefore, any foreigners that plan to engage in rental services in […]

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Consumer Protection in Thailand: Advertising

Advertising in Thailand is subject to the Consumer Protection Act of B.E. 2522 (1979), in addition to other laws depending on the type of product or service. The Act creates serious criminal penalties for any violations; therefore, it is important for businesses to ensure that their advertisements are compliant, in order to limit any possible […]

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Agency Law in International Commerce in Thailand

| January 15, 2016 | Property

An important consideration when conducting an international commerce business in Thailand is the issue of agency relationships between a distributor and the overseas supplier or manufacturer. Where an agency agreement has been created, the general rule of law is that principals are held liable to third parties, such as purchasers, for the authorized actions of […]

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Basics of Thai Investment Promotion Law

Thailand’s investment promotion laws are a particularly important element of its overall plan for future economic growth, especially regarding its competitiveness with other nations in the ASEAN Economic Community (AEC). The Investment Promotion Act of B.E. 2520 (1977), amended as recently as 2001, empowers the Board of Investment (BOI) of Thailand to grant tax and […]

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Betrothal Agreements under Thai Law

Under Thai law, a promise to marry creates a legally binding agreement if the groom transfers property called the khongman (a “reverse dowry” or “bride price”) to the bride after the betrothal has taken place. Therefore, as a legal contract, a betrothal gives rise to legal ramifications. According to Sections 1439 and 1440 of the […]

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Mergers and Acquisitions: Corporate Income Tax Implications

Under the Revenue Code of Thailand, what are the corporate income tax and other tax implications arising after a merger and acquisition? The basic principle under Thai law is that after a merger, the amalgamated company inherits the rights and liabilities of the former companies.1 This principle is particularly relevant in terms of tax liability. […]

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Mergers and Acquisitions: VAT Implications under the Revenue Code

Under the Revenue Code of Thailand, what are the specific value-added tax (VAT) implications that arise after a merger and acquisition? The general principle of law as stated in Sections 152 and 153 of the Public Limited Companies Act of B.E. 2535 (1992) is that a merger of companies causes the former companies to cease […]

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