The most common forms of organizations in Thailand are companies, associations, and foundations. A foundation is the structure that is normally used for doing work in the charitable or not-for-profit sector. Foundations in Thailand are taxable, however they are only taxed at the rate of 1%.
A foundation is a legally recognized juristic person that can enter into contracts, take legal actions, hire employees, etc. Every foundation must have an official name and corporate address, and must be registered with a district office in the province in which you will operate. When a foundation is created, the founders must write its constitution, rules and regulations, and any specific goals or objectives.
A Thai foundation requires a board of at least three people who will work for the foundation on a voluntary basis (these people may be Thais or foreigners or both). The Board must include people serving in the following positions: Director, Assistant Director, Secretary, and Treasurer. Board members must provide personal finance details and proof of identity.
In order to register a foundation, a bank account must be opened and between 200,000THB and 500,000THB deposited into it (the amount is determined on the basis of the foundation’s objectives). This amount must remain in the account at all times, and cannot be used (for example) to pay for operational expenses.
Foundations may collect donations for which they may issue appropriate tax receipts. A foundation is also able to employ people, and to sponsor visas and work permits.
Please contact Interactive today for further information about creating a Thai Foundation.