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Setting Up a Foundation in Thailand

This article was provided by Siam Legal, an international law firm with offices in Thailand

 

A Thailand foundation is an organization established with the goal of supporting charity, Religion, science, literature, education, or any public interest. They are put up using money donated by individuals, families or corporations which is in turn, invested by the foundation. The income generated by these endowments is then used to make grants and to operate programs.

The law forbids any trustee, director or member from directly benefiting from the profits earned by a foundation in the performance of its philanthropic duties. It is also required by law that a foundation be registered with the registrar of the district having jurisdiction over the place where the principal office of the foundation will be located.

In Thailand, a foundation is required by law to conform to the following:

It must have allocated assets as the source of funding for its operation.

1. It must have allocated assets as the source of funding for its operation.

2. The funds of the foundation must only be used in meeting its objectives which are activities of

public interest, religion, art, science, literature, education, or similar others and not for personal benefit.

3. Assets and revenue gained must only be spent for activities directly related to the objectives of

the foundation and should not be divided among its members.

4. Its founders must register the foundation as a juristic person. As such, a foundation must have the following: (1) name, office and objectives (2) assets which are allocated as the operating fund and (3) a board of committee members and its regulations.

 Setting up a foundation in Thailand starts with the submission of a duly accomplished

Application for registration to the registrar of the district having jurisdiction over the place where the principal office of the foundation will be located. Aside from the application, the other documents required include:

1. List of assets of the owners

2. List of allocated assets for the foundation and registered document with the written

Promise to donate the assets

3. Copy of the will and testament if an asset was awarded to the foundation by a testator

4. Name, address and profession of each of the members of the foundation’s board of

Directors

5. Regulations of the foundation

6. Copy of ID card or other types of government issued identification cards and copy of

census registration of the owners and members of the board of directors (if a priest or a

Foreigner, the other documents that reflect his status are acceptable)

7. Map of the principal office and its branch offices (if any) as well as the written consent of the landlord or owner of these properties

8. Minutes of the meeting regarding the discussion of the foundation’s establishment

Upon submission of all the documents required, the registrar will check first if there is

any other foundation with the same name. If none, he will proceed to evaluate the objectives of the proposed foundation to determine whether they are related to the duties under the control of the National Council of Cultural Affairs.

If they are, he will then forward the application to the said council for final approval. Once approved, the foundation will be allowed to register. When the registration certificate has been issued, the Thailand foundation can begin its operations.

This article was provided by Siam Legal, an international law firm with offices in Thailand and three other countries. Siam Legal publishes legal guides to doing business in Thailand on its website.

 

Siam Legal International

Interchange 21 Building, 23rd Floor, 399 Sukhumvit Road

North Klongtoey, Wattana, Bangkok

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Posted by on Oct 11 2011. Filed under Expat Life, Opinion. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
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