Associations and foundations in Thailand.

We have put together a guide on associations and foundations in Thailand to help you understand how they are created, how they operate and what the differences between them are.

Foreign investors who wish to set up a non-profit or non-governmental organisation in Thailand have the option of an association and foundation. Even though both structures are for non-profit activities, they have different setup requirements and purposes.

Let’s find out more about associations and foundations.

What is an association?

According to Section 78 of the Civil and Commercial Code, an association is a juristic person created for conducting any activity which, according to its nature, is to be done continuously and collectively by persons other than that of sharing profits or incomes earned.

Requirements for an association in Thailand

Registration requirements

The documents and details that is needed for registering an association are:

• The regulations or by-laws of the association
• Three promoters and minutes from their meeting leading to the establishment
• A list of names, addresses and occupations of 10 initial members
• A list of names, addresses and occupations of at least three association directors
• Proof of the association’s headquarters, i.e., map, lease agreement
• Background history of three promoters which are certified by a department-level government official
• Certified copy of the identification card and house registration book of all members and directors

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Regulations of an association

The regulations of an association must include:

• The name of the association (the name must include the word association)
• The objectives
• Address of its principal office and all its branches
• Rules for admission of its members and conclusion of membership
• Rates and member-fee
• Rules for the committee of association:
  • Number of directors
  • Appointment of the directors
  • Term of office of the directors
  • Retirement of office of the directors
  • Meetings of the committee
• Rules for the management of the association, the keeping of accounts and the property of the association and annual general meeting

Minimum investment

There is no minimum investment required to establish an association in Thailand.

What is a foundation?

Stipulated in Section 110, a foundation consists of property specially appropriated to public charity, religious, art, scientific, education or other purposes for the public benefit and not for sharing profit.

The property of a foundation must be managed to implement the objectives of that foundation, not for seeking interest for any person.

Requirements for a foundation in Thailand

Registration requirements

The requirements for establishing a foundation in Thailand are:

• Rules and regulations of the foundation
• A minimum of three directors:
  • Director
  • Assistant director
  • Secretary/treasurer
• List of the assets of the owner
• List of allotted assets and the registered document promising to donate the assets
• Minutes of the meeting convened for the establishment of the foundation
• Map of the principal office and branch offices
• Written consent of the landlord or owner of the property which the foundation is constructed
• Names, addresses and occupations of all the directors of the foundation
• Copy of identification card or other types of identification issued by the government
• Copy of the house registration (Tabien Baan) of the members and directors of the foundation (for monks or foreigners, documents proving their status are acceptable)
• Copy of the will or testament if an asset was provided by a testator to the foundation

Regulations of a foundation

The regulations must include:

• The name of the foundation (must have the word foundation)
• Its objectives
• Address of its principal office and branch offices
• The assets of the foundation at the time of establishment
• Rules for the committee of the foundation:
  • Number of directors
  • Appointment of directors
  • Term of office of the director
  • Meetings of the committee

Minimum investment

The initial investment for establishing a foundation is THB 500,000 with at least THB 250,000 in cash.

For foundations with the objective of promoting education, sports, religion, and for the treatment, research and prevention of drug use patients, AIDS, or foundations established by government agencies, the investment is THB 250,000 and THB 100,000 in cash.

Association vs foundation

An association is a group of people working in an organisation with the same aim or interest, which focuses on the public interest, and benefits the society and its members. While a foundation operates as a public charity and collects funds from donations to carry on activities for the public’s benefit and support non-profit organisations.

Associations can operate activities that generate profit which the profit must be used the profit earned to promote the objective and purposes of the association. The profits, however, cannot be distributed to the members.

Foundations are allowed to collect donations, either money or items, to support their objectives.

Examples of a foundation and association in Thailand

An example of a foundation is the Poh Teck Tung Foundation.

The objectives for the Poh Teck Tung Foundation are:

• Help victims of fires, floods or other natural disasters
• Established Hua Chiew Hospital (non-profit organisation) to treat all types of patients
• Establish educational institutions and provide scholarships
• Managing unclaimed corpses and set up a cemetery
• Promote and maintain religious, artistic and scientific activities
• Perform charity in general or according to the board’s resolution

The foundation invites people to donate money, unwanted items and food to those who are in need.

Donations made to the foundation will be used to help:

• Flood, fire and natural disaster victims
• Those who lack clothing in the cold
• Funeral of accident victims
• Medical services, such as medical expenses in Hua Chiew Hospital, government hospital and health centres, establishing community welfare medical units and free medical examination
• Support scholarships for all levels
• Support elders and disabled persons
• Child and youth welfare, such as handing out notebooks and stationery on National Children’s Day
• Support and preserve religion on various occasions,

An example of an association is The Gastroenterological Association of Thailand (GAT).

The association started with 34 members and has grown to almost 900 active members, including gastroenterologists, internists, surgeons, paediatricians, scientists, and general practitioners. The lifetime membership fee is THB 1,000.

The objectives of the association are:

• Promoting the advancement of the scientific knowledge in gastroenterology by providing standard care for patients, clinical and basic translational research, training programs, continuing medical education (CME) and scientific meetings.
• Promoting and maintaining the highest ethical standards of medical practice.
• Promoting social responsibility and health education related to gastroenterological and liver diseases in Thailand.

Conclusion

Activities of both associations and foundations are for the general public’s benefit. If you want to establish an NPO or NGO, you may consider one of the two structures. To guide you through the process of setting up a foundation or association, feel free to contact Acclime.