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THAILAND FOUNDATION ESTABLISHMENT

Our legal experts will assist your throughout your foundation registration process in Thailand making it hassle-free and compliant with the Thai law.

FOUNDATION

REGISTRATION IN THAILAND

A foundation establishment in Thailand is a legal non-profit entity that aims to support or involve itself into several social causes for the welfare of society. Under the Thai Civil and Commercial Code, Sections 110 – 136, a foundation can engage in contracts, employing local staff and lease premises in Thailand. Foundations can raise funds by collecting donations for their works and can issue receipts like a company. Their areas of work include charity, religion, art, science, literature and other noble causes for the public benefit and not for profit, and which have been registered under this Code. The property of a foundation can only be used for the purpose of achieving specific goals and not for the sole interest of one or more individuals.

Primary Features of a Foundation

  • The foundation is established for only non-profit purposes of public charity, religion, art, science, literature, or other purposes for the public welfare.
  • A foundation is independent of any government organization.
  • Land Conveyance
  • The board or committee comprises of three important persons namely the Director, Assistant Director and Secretary or Treasurer.

Benefits of Foundation Registration

Foundation registration in Thailand offers some major benefits

  • Once a foundation is registered, it can involve itself into legal business contracts. This proves beneficial for the organizations wanting to partner with local organizations to support their work in Thailand.
  • Foundation registration builds credibility and accountability between the donors and the foundation. It also provides transparency and legal clarity to its donors, supporters or volunteers.

Registration Approval Criteria

  • The the official name of the foundation is required to be translated into Thai and include the word "Foundation". All of its official documents also should bear this name.
  • The foundation must be set up at a principal location and the legal owner must produce the supporting documents including a letter of consent and lease agreements to permit the foundation to use the office premises.
  • The objectives and purposes of the foundation must be clear. It should be able to meet its target goals and fulfill its plans.
  • Additionally, the bylaws and goals of the foundation must adhere to the regulations of the Thai Civil and Commercial Code.
  • The objectives must not endanger society and its people.

Registration Application Process Completion

The applicant must submit the registration application to the Registrar office where the foundation is located. The application must be in Thai version and bear the names, current addresses, and profession of all the would-be directors or committees, the bylaws, the property or assets of the foundation along with the ownership or lease documents of the main address of the foundation. Note that the application must be thoroughly reviewed and accurately completed before filing with the local registrar. Initially, the application will be reviewed for any similarity with any already established foundations that is actively running. If the application receives a green light, it will be handed over to the Ministry of Interior for final approval. Once the application is approved, the registrar will issue a registration certificate allowing the foundation to commence its operations in Thailand.

Foundation Accounting Obligations and Compliance

It is mandatory for every foundation to submit tax reports with its compliance with the Revenue Code to pay the necessary taxes to the Revenue Department. Therefore, the foundation is required to register for a Tax Identification Number from the provincial revenue department office within 60 days after the registration date. The foundation must withhold taxes when making any payments to any third-party and maintain a record of income and expenses incurred by the foundation. The submission of the reports should be done in a timely manner to the revenue office. The calculation and submission of the taxes reports are according to the accounting cycle and is similar to that of a Limited company or Limited partnership registered in Thailand. The tax rate of the foundation is calculated at the rate of 10% or 2%, based on the revenue type. The foundation must ensure timely submission of the tax reports to the revenue office. If you're looking for reliable legit services to help you with the registration of your foundation in Thailand, approach our legal experts at Cloud 7 Legal Services.