Legal

Buying a business in Thailand and making sure the all the paperwork and documentation is correct can be a daunting task. The obvious difficulties are language problems, culture differences and unfamiliar business practices.

Please see below for an overview of the legal issues involved when investing in the Thai tourism industry.

THAI LIMITED COMPANY
The most popular structure of land & business purchase for foreign investors is through a Limited Liability Company. In Thailand, a Limited Company is considered a Thai Juristic Entity and can own land, real estate and property.

A foreign investor may hold 39% of the company shares at the time of the initial land transfer increasing to 49% when the company fully owns the land. The foreign investor may then elect to legally become the only director of the company, ensuring that any and all dealings of the company and its assets are within the foreign investors control.

LEASEHOLD AGREEMENTS
Leasehold Agreements are another option for the foreign investor. A lease is normally offered for an initial period of 30 years, with two further prepaid options of 30 years renewal, giving a total of 90 years lease guaranteed.

Clauses allowing freehold ownership are written into the agreement thereby allowing a freehold ownership should Thai law alter to allow full foreign ownership of land and property.

Also included in the agreement are clauses covering the right to sell, sub-let or transfer the lease agreement making a leasehold purchase a viable option.

THAILAND BOARD OF INVESTMENT
For corporate investments, particularly within the hotel and resort industry, the Thailand Board Of Investment (B.O.I) offers unique incentives for outright control of your business in Thailand.

First-One Property has it’s own legal consultants who are specialist in B.O.I applications.

Minimum requirements are hotel to have at least 100 rooms. For further details please contact us.

LEGAL QUESTIONS
We have our own legal team and translation service available to help with any questions and offer advice on the best options.



Finance

FINANCE IN THAILAND
As a foreign investor it is very difficult to arrange finance in Thailand without a Thai partner to act as guarantor. Generally foreign investors who are looking to finance a large project arrange loans, mortgages and financial plans from their home country. All potential clients viewing properties with Thailand Hotels For Sale are required to offer our legal team either a letter of credit or reference from their business account manager or banking official.