Thailand Law Blog
Capitalization for Foreign Business in Thailand
The Foreign Business Act of 1999 restricts and regulations foreign business activity in Thailand in order to protect Thai businesses and one of the ways it does so is through specifying rules regarding the capitalization of foreign businesses in Thailand. Notably, although retail is restricted under (14) of Annex 3 of the Foreign Business Act, […]
Drafting an Employment Contract in Thailand
When drafting an employment contract, it is imperative to retain the services of a trained legal professional, rather than resorting to a template, such as the one found online. An important consideration is that employment contracts are ultimately abstract legal rules and the application of those rules in real-life situations may lead to certain results […]
Can a foreigner own land in Thailand?
Question: I am a foreigner who has retired in Thailand and I have recently married a Thai woman. We are currently considering the purchase of 1 rai of land in Phuket where we build our marital home. I will actually be paying for the full purchase price of the land with my own personal funds, […]
Thai Family Law: How to Parent with Child Custody
After a divorce in Thailand where there is mutual consent, the terms of divorce may be attached to the divorce certificate and has legal force according to Sections 1566(4) and 1520 paragraph 1 of the Civil and Commercial Code. If the couple has children, then the most important term that is agreed to by the […]
Thai Criminal Procedure: Hearsay
As is the case in the criminal procedure laws of other jurisdictions, Thailand prohibits the use of hearsay evidence in criminal trials (Section 226/3 of the Criminal Procedure Code). Hearsay is generally defined as testimonial evidence of a statement not made before the Court which is meant to prove the assertion made in the statement […]
Thai Labor Law: Legality of Non-Competition Contracts
A common feature in employment contracts, typically those of top-level executives, is the non-competition agreement. Such agreement normally requires that should the employment contract terminate, the employee is prohibited from engaging in a competing business for a fixed period of time. Specifically, a typical clause will define a certain period of time following the termination […]
Withdrawal of Shareholder Meeting Resolutions
A basis for withdrawing a resolution passed by a shareholder meeting of a Thai limited company is that the resolution was passed through bad-faith. Section 5 of the Civil and Commercial Code provides that “Every person must, in the exercise of his rights and in the performance of his obligations, act in good faith.” Furthermore, […]
Foreign Currency Requirements for Purchasing a Condo
The Condominium Act of 1979 is restrictive of foreign ownership of condominiums in Thailand, but generally allows it for foreigners who permanent residents, or those who have entered the country on an investment promotion visa, or for those who have fulfilled certain requirements related to the transfer or withdrawal of foreign currency. In regards to […]
Acquisition of Land in Thailand by a Foreign Government
The acquisition of land or a condominium unit in Thailand by a foreign government for official use, such as for use as an embassy or consulate, is not covered by any specific legislation. Therefore, assuming that a foreign government intended to acquire land or other immovable property in Thailand for official use, such an acquisition […]
Foreigner’s Right to Value of Land in Thailand
An important principle of Thai law regarding foreign investment in land is that where the foreigner has purchased land, but is not able to legally register ownership of the land, he or she is entitled to the monetary value of the land. This principle is demonstrated in the following Land Department Advisory Opinion: During litigation […]
