Thailand foundation establishment.
A non-profit foundation setup in Thailand is a legal juristic entity whose main purpose is to support or engage in activities of public or private interest without any commercial or monetary profit.
registration in Thailand.
Governed by Thai civil and Commercial Code, Sections 110 – 136, a foundation can legally enter into contracts, employ local staff and lease premises in Thailand. These organisations generally work for the benefit of society, either for everyone’s benefit or to focus on improving the lives of a specific target group. Non-profit foundations are able to collect donations for their work and can issue receipts just like a company. Areas of activity can include charity, religion, art, science, literature, or other purposes for the public benefit and not for profit, and has been registered under the provision of this Code. The property of a foundation can only be used in order to obtain the specific targets of the foundation, and cannot be for the sole interest for one or more persons.
Key characteristics of a non-profit foundation.
- The board or committee consists of 3 key people. This usually includes the Director, Assistant Director and secretary/Treasurer.
The non-profit foundation is setup for only non-profit purposes and exists independent of any government organisations.
- It is setup only for purposes of public charity, religion, art, science, literature, or other purpose for the public benefit.
Registering a foundation in Thailand has some key benefits:
- A foundation can engage or enter into legal business contracts once registered. This is an advantage for organizations seeking to partner with local organizations to support their activities in Thailand.
- Raising funds and donations for your projects under the foundation becomes easier when you have a registered entity.
Donors looking to fund a project find it easier to trust and account for their donations through a legally registered non-profit foundation. Having a registered entity provides legal clarity to its donors and supporters.
Criteria for approval.
An official name for the foundation must be chosen. It will need to be translated into Thai and must include the word “foundation”. All official documents of the foundation must bear this name.
A principal location for the non-profit foundation must be selected. The legal owner of the premise must provide supporting documents such as a letter of consent and lease agreements to allow the foundation to use the office premises.
The foundation bylaws must have a clear objective and purpose. The non-profit foundation must have an achievable goal and will need to fulfil their plans.
- The bylaws and objectives of the foundation must be in line with the Thai civil and commercial code. The objectives cannot be seen as a danger to the society and its people. The bylaws must in line with the Civil and Commercial Code of Thailand.
Application process and timeline.
The application will be submitted to the Registrar office where the business address of the foundation is located. The application will include in Thai, the bylaws of the foundation, the property or assets appropriated for the foundation, the names, addresses and occupation of all of the would-be directors/committees of the foundation and ownership/lease documents of the principal address of the business. The application must be reviewed for correctness and completeness before it is filed with the local registrar. The application will be initially checked and reviewed for similarities with any existing foundations currently running. If the review comes back positive, it will be forwarded to the Ministry of Interior for final approval. Once approved, the registrar will issue a registration certificate, which allows your foundation to start its activities in Thailand.
Accounting obligations and compliance.
A foundation must submit tax reports and comply with the revenue code to pay its relevant taxes to the Revenue Department. A foundation must register for a Tax identification number from the provincial revenue department office within 60 days from the registration date. It must withhold taxes when payment is made to any party and record income and expenses under the foundation. These records must be submitted to the revenue office in a timely manner. The calculation and submission of tax reports for the foundation is based on its accounting cycle and will be the same as a Limited company or Limited partnership registered in Thailand. The foundation’s tax rate is calculated at the rate of 10% or 2% depending on the type of revenue generated.