Opening a foundation in Thailand involves a number of legal requirements and a specific process that needs to be closely followed. Here is an outline of the general requirements and process for establishing a foundation in Thailand:
Title and Objectives
Decide on a name for the foundation and ensure it has clear objectives that are for public benefit, charitable, religious, artistic, scientific, educational, or other purposes not involving profit-making
Initial Funds for the foundation in Thailand
You must have initial fund or properties which are necessary for carrying out the objectives of the foundation. The law may require a minimum amount of capital, which typically has to be fully paid upon registration. It is normally 250,000 baht to 500,000 baht depending on the objectives of the foundation. That money must stay in a bank account and won’t returned. If you close your foundation, that money should be given to another foundation. Some can be given in assets but a minimum of 100,000 baht must be in cash, sometimes 250,000 again depending on the type of foundation.
Foundation Charter
Draft a foundation charter, which must include the name of the foundation, its objectives, and the regulations under which it will operate. This charter will also include details such as the procedures for appointing and removing directors, the location of the foundation, and how assets will be managed.
Directors
Appoint a board of directors, with at least three individuals. These directors will be responsible for running the foundation. It is required to have directors’ meeting to pass the resolution for the registration of foundation. It is easier with only Thai citizens are foreigners will have much more scrutiny. They will normally be Director, Assistant Director and Secretary/Treasurer. Director or board members can be changed but some places will require a delay of 1 year since the foundation was opened.
Office Location
Have a clear office location within Thailand from which the foundation will operate. The title deed of the place will be needed.
Application and Documentation
Prepare and submit an application to register the foundation with the local district office (“Amphur”) or, if the foundation’s objectives are national, with the Ministry of Interior. The application must be accompanied by supporting documents, such as ID cards of the founders, the foundation charter, evidence of capital, location of office, objectives of the foundation, etc.
Review Process
After submission, the authorities will review the application and documents for compliance with Thai law.
Approval or Rejection:
Authorities may either approve or reject the application. If rejected, you will typically be informed of the reasons and may address any issues and reapply.
Registration Fee
If the application is approved, a registration fee must be paid. The amount depends on the value of the foundation’s assets.
Legal Entity Status
Upon approval and payment of the registration fee, the foundation becomes a legal entity. You will receive a white registration certificate for the foundation.
Operating the Foundation
Once registered, the foundation is required to operate according to its objectives and charter. The foundation must also comply with reporting requirements, which may include financial statements and activity reports, to maintain its legal status.
Monitoring
Foundations in Thailand can be subject to government audits and must ensure they adhere to all relevant laws and regulations.
A foundation is a juristic person. It can collects donation and issue receipts. A tax rate can apply between 2 to 10% depending on the case and work permits can be issued but they are complex and longer than usual work permits.
It should be noted that the above points are a general guide and may change. It is always recommended to consult with legal professionals with expertise in Thai law for up-to-date advice and assistance in the registration process. We can help you to start a foundation but it is time consuming, 6 months to 1 year, and a lot of documents is needed. To ask more information, contact us at by email.
- Read about the experience of one of our client that set up a foundation in Thailand
