A foreigner may use a Thailand-registered company to obtain property rights or land interest in Thailand.
To establish a Thai Limited company you will need Three promoters, one of these Three must be Thai.
A Thai Limited Company must have a Thai national holding 51% of the company in term of share holding, which means that foreigners can hold only 49%. but after 15 August 2006 the Thai government changed the rules for company registration. If the Thai limited company has a foreigner holding shares more than 39% or has a foreigner as director, the government will require additional documents, these include, Thai bank statements of all Thai nominee shareholders to prove that all Thai nominee shareholders have enough money to pay for said shares.
However, We can register your company with a nominee Thai director, in this instance the Thai nominee promoters ( shareholders) do not have to provide further documentation to show they have necessary funding to pay for said shares. Upon company formation the nominee Thai director can then be changed to yourself to allow you full control over your Thai limited company, The same can be done to allow you a holding of 39% shares.
To allow you further protection in the instance of a dispute with shareholders you will be afforded ordinary shares which allow you 1 vote per 1 share, while other share holders will be afforded preferred shares which allow them 10 shares to 1 vote. Which means that you have voting majority therefore sole decision over your company.
Company registration takes approx 2-3 weeks.
The Transferring fee is 2% of the registered value of the property. This fee will be paid to the officer at the land office, upon the day of the transfer of ownership.
Buyer or seller is subject to a 0.5% Duty Stamp from either the appraised value of the property or actual purchasing price, whichever is higher. Stamp Duty is to be imposed unless the Specific Business Tax (SBT) is paid.
SBT will only be imposed if you are selling your property, which you have own less than a period of five years. The tax rate is 3.3% of the selling or assessed price of an asset (whichever is higher). Company selling their property: the withholding tax of 1% from appraised value of property or actual selling price, whichever is higher, must be paid by the Seller.
However, there are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the West. Commercial properties incur a small tax which is collected infrequent.
In term of registering a lease agreement, a registration of a lease for duration of more than 3 year required to pay a registration fee rate of 1% plus a 0.1% rate of stamp duty. Rates are calculated from the total amount of the rental fee or the key money or both.
Registration of Thai limited company for land ownership:
Scope of services:
- Draft, review and registration of the Objectives and the Articles of Association.
- Obtain the Company Registration Certificate and Affidavit.
- Apply for Taxpayer Identification Number.
- Translate the company registration documents, such as the Certificate of Incorporation and the Articles of Association into English.