How to Set Up a Foundation in Thailand
Updated on Tuesday 14th April 2020
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A foundation in Thailand is dealing with donations in different areas of interest like religion, education, literature or science. The money comes from corporations or simple citizens and the foundation is in charge of investing and distributing the capital. It is good to know that no executive of a foundation in Thailand can benefit from the collected money. Our experts in company registration in Thailand can provide you with information and guidelines if you want to set up a foundation in Thailand. Besides that, you can ask or complete guidance about how to open a company in Thailand.
Important documents to open a foundation in Thailand
From the beginning, we remind that a foundation in Thailand needs to have an official name and must have a registered office in the city in which will do activities. The Thai Ministry of Interior deals with the rules and regulations of charity foundations in Thailand and certain documents need to be prepared, such as:
- the application form to register the foundation in Thailand;
- the list of the owners containing their names and addresses;
- the founder's identity cards;
- the documents that prove the donations will be offered forward;
- the papers related to the rules and regulations of the foundation in Thailand;
- the house registration certificate with the owner’s consent;
- details about the main office (address, layout, etc.).
A foundation in Thailand needs to have at least BHT 500,000 valued assets, half of them in cash, in order to be registered. This minimum asset requirement can vary according to the stated objectives of the foundation. The District Office from the area in which the foundation will be based examines the application for these types of entities and then transfers the application to the Ministry of Interior. This examination is a thorough one and it is the reason why it is recommended that you get in touch with one of our agents when deciding to open a foundation. Ensuring that the application is submitted according to all of the regulations in force will mean that it has a higher probability to be accepted upon review. Once the foundation registration certificate is issued, it can begin its operations in Thailand.
Our company formation agents in Thailand can offer assistance when preparing the documents and register the foundation. You can also solicit details about how to open a company in Thailand.
What you need to know about a foundation in Thailand
If you want to set up a foundation in Thailand you should be patient because the entire procedure lasts for about one year because the documents need to be properly verified by different ministers. A Thai foundation can have employees, to sponsor work permits and different visas. You should know that the taxation rate for a charity in Thailand is 2% for the business income and 10% for other income such as that from dividends, rent or interest. Income from membership fees and donations is tax exempt. We remind that the Thai company formation is an easy process which can be suitably done if you solicit our help.
The foundation needs to comply with the rules and regulations for this type of firm, and they include the following:
- have enough assets: the foundation is a business that needs to have enough assets so as to be able to conduct the activity it is set up for, be it educational, charity or otherwise.
- fund spending: the funds earned by this entity are to be utilized only for the purposes set forth in its objectives; as stated above, they are not to be used by the personal benefit or the foundation owner or any other interested party; the income is not to be shared among the members the same way the profit of a company would be.
- management: the foundation will have a Board that will observe specific regulations and that will oversee the proper functioning of the foundation, according to its purposes; at least three individuals need to be on the said Board.
- register: the foundation legally functions only if it is registered in the jurisdiction where its headquarters will be located.
Additional information and details about how to set up a foundation in Thailand can be found if you get in touch with our company formation representatives in Thailand. We can give you complete information about the rules and regulations applicable to foundations as well as the registration requirements.
Our team offers complete company formation services in Thailand and can help foreign investors understand the principles of the Foreign Business Act.