Whether difficult to purchase the real estate in Thailand
Foreigners have no right to buy the land in Thailand – only condominiums and apartments are available to them. Foreigners shall not make more than 40% of owners of units in condominium. However, foreigners can purchase the whole building without the earth on which it is built.
Little changes in the legislation of Thailand for last several years allowed nonresidents to investigate the real estate market of the country. The foreigner can acquire the right of 30 years' lease, having registered in the state office registering land transactions further to prolong the contract for the next 30 years.
Other opportunity consists in creation of private limited liability company with the mixed part ownership: the share of foreign ownership shall make no more than 49%, and the share of the Thai ownership shall make the rest. It is allowed to companies to own the earth. The foreigner can manage the company by means of the legal power of attorney from the Thai shareholders giving control to foreign directors or if the foreign partner (or partners) have more voting powers. It is the effective and checked by time method which is preferred most often by foreigners. In this case it is very important to address the qualified lawyer.
Besides, foreigners can invest 40 million Thai baht ($1,038,314) in the project approved by council for investments. Then they will be able to purchase up to 1,600 sq.m. of the earth.
How to open private limited liability company in Thailand
- To reserve the name of the company. You shall reserve the name in the Register of associations and societies, Department on business development, the Ministry of Trade, having given three expected names there. The name shall not coincide with already registered companies. The reserve is valid within 30 days with a possibility of prolongation. For it the tax is not levied, and you shall expect confirmation within two working days.
- To provide the foundation agreement. The foundation agreement shall be submitted to Management on business development. It shall comprise the name of the company, its arrangement, the purposes, the registered capital, the number of events and nominal value (at least 5 Thai baht ($0.17) each event), the relevant information and signatures of initiators (at least 7) and the number of events for each founder.
- To call the constituent assembly. At the constituent assembly the list of founders, their addresses and the number of events shall be provided. The statutory report or the Notice of the invitation shall be sent to each of founders prior to a meeting. In addition, the agenda shall include:
1) Adoption of the charter.
2) Ratification of contracts and expenses of founders.
3) Establishment of preferred shares and their rights.
4) Fixation of number of events which shall be in whole or in part paid.
5) Appointment of directors and authorized director.
6) Appointment of auditors and coordination of their remuneration.
- Payment of events. Directors shall provide payment of events by founders, depending on the amount which was approved at the constituent assembly.
- Registration. The company shall be registered within 3 months after the constituent assembly by means of filing of application signed by authorized directors. The application needs to be submitted together with the company charter. After registration was approved (usually within 5 working days), you will need to pay a tax of 50 Thai baht ($2) for each 100,000 Thai baht ($ 3,333) of the registered capital. The minimum size will be – 500 Thai baht ($17), maximum – 25,000 baht ($833).
- Statement on tax accounting. It is necessary to get registered in internal revenue service and to get the ID card and a number. The companies earning more than 600,000 baht ($ 20,000) a year shall be registered also for the VAT.
It should be noted that local banks do not grant the loans to foreigners. It is also important to remember that all money which is transferred from abroad in foreign currency before converting in baht shall be accurately designated as "for purchase of condominium" and is documented.
Our company predlagt to the clients a set of magnificent country houses in Thailand. No matter, what method of purchase you chose, the AWAY REALTY company is ready to support you at each stage of the transaction.
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