Thailand Foundation Establishment

A Thai foundation is a legal juristic entity, with the primary objective of supporting or indulging in activities relating to public or private interest, without earning any sort of a commercial profit out of it.

Thai Foundation is governed by the Thai Civil and Commercial code, Sections 110-136. Under this law, a Thai foundation can enter into contracts, employ people, and lease space in Thailand. Further, they can also gather donations for their activities, and issue receipts just like any other company registered in Thailand. Besides, the property of the foundation shall be used only to achieve the targets and the objectives of the foundation, and not for the interest of a particular individual, or a group of individuals.

A Thai Foundation can indulge in activities, including art, science, charity, religion, literature, and many other not for profit purposes, carried out solely for the betterment or the welfare of the society, or a targeted segment of it.

A foundation requires the fulfillment of the following.

• The foundation should be established and operating only for non-profit purposes and has an existence that is independent of any government institution.
• The foundation board must be comprised of 3 key people, including the director, assistant director, and the treasurer or the secretary of the foundation.
• It is established for the purpose of religion, science, art, charity, literature, and other purposes for the benefit of society.

Here are the criteria to get a foundation registered in Thailand.

• At the outset, it is necessary to choose the name of the foundation, which will then be translated into the Thai language and must be comprised of the word foundation. This name must be used in all the official documents of the foundation.
• Next step is to have the principal location chosen. This will also require a letter of consent and the legal agreements from the legal owner of the location, allowing the foundation to use the location for its operations.
• Further, it is necessary for the foundation bylaws to have a clear objective and purpose. Besides, it must also have an achievable objective, and must also fulfill them.
• Moreover, the foundation bylaws, and its objectives must be aligned with the Thai Civil and Commercial Code.
• The objectives must not be a threat or pose any kind of a danger to the society and the people in it.

Here’s how the application process for the Thai foundation establishment.

• Initially, the application will be submitted to the Registrar office, wherein the business address of the Thai foundation is located.
• The application will be comprised of the bylaws, the names, addresses, and the occupations of all the directors or the committees of the foundation, the property or assets appropriated for the foundation, along with the ownership or the lease documents (whichever is applicable) of the principal business address of the foundation.
• Next is the application review process. Before filing the application with the local registrar, the application form must be reviewed and checked thoroughly.
• Then, the application will be reviewed and checked to determine whether it holds similarity with any of the existing foundations currently operating in the country.
• If everything is fine, and the review is positive, the application will be sent to the Ministry of Interior for the final approval.
• Once the Ministry of Interior issues an approval, the Registrar will issue a registration certificate. This registration certificate will allow the foundation to begin its operations in the country.

As with all the other types of entities operating in the country, a Thai foundation too has to comply with several rules, and regulations coupled up with a lot of accounting obligations, to ensure smooth running, transparency in the work processes, and its transactions, etc.

• It is obligatory for the Thai foundation to submit tax reports, and comply with the revenue code to pay the required taxes to the Revenue Department.
• Besides, it is imperative for the foundation to register for a Tax Identification Number from the provincial revenue department, within sixty days of the registration of the foundation.
• It must hold back the taxes in event of a payment done to any party, and record the income and expenses under the foundation.
• It is necessary to submit these records to the concerned authorities in a timely manner.
• Tax report calculation and submission are based on the accounting cycle of the foundation. It will be the same as Limited partnership registered, or a Limited company operating in Thailand.
• The tax rate of the foundation is calculated at the rate of 10% or 2% based on the type of revenue generated.

Let us take a look at some of the benefits associated with registering a foundation in Thailand.

• Registering the foundation simplifies running fundraiser programs and raising donations for different projects under the foundation.
• Registration of the foundation builds trust among donors, as the legal registration of the firm assures them of its credibility. Besides, it also offers legal clarity to all the parties involved in a particular project or a donation.
• Registering enables the foundation to indulge or enter into legal business contracts, which, in turn, works as an advantage for companies looking forward to partnering with local entities to support their Thai endeavors.

If you wish to establish a foundation in Thailand, don’t be stuck with the intricacies involved in it. Choose us, as we are the right people! Why?

At BLS, we bring years of experience and expertise in helping companies, and individuals register foundation in Thailand. We employ a team of legal and administrative specialists that assists the clients with all the necessary know-how, the technicalities, and also about the various administrative aspects involved in registering a foundation in Thailand. Besides, we also help our clients with the documentation and the compliance part, thus ensuring a comprehensive solution to help our clients register a foundation in Thailand.

Remember, registering a foundation in Thailand may involve a lot of documentation, formalities, etc. dealing with which will require you experts by your side for a smooth and hassle-free registration process. In this view, BLS is exactly what you need! For more information on our Thai foundation establishment services, or to connect with us, get in touch with us today!