Articles & Publications

Thailand’s EEC: a global gateway to Asia services

The Thai government in conjunction with the Board of Investment recently announced the new Thailand 4.0 economic model, known as the Eastern Economic Corridor (EEC), which is the enhancement programme for three provinces on Thailand’s eastern seaboard. Manufacturing development in the past 30 years within these three provinces of Chachoengsao, Chonburi and Rayong has served as a pilot for an economic gateway to Asia. Under the EEC, these provinces will be developed to support 10 industries promoted by Thailand’s Board [...]

SEC Introduces KYC Sandbox

On May 23, 2017, the Securities and Exchange Commission (“SEC”) of Thailand has opened a new regulatory sandbox specifically for businesses who wish to test “Know Your Client” technology. The KYC Regulatory Sandbox (the “Sandbox”) will allow interested applicants to test their KYC technology for a period of no longer than 1 year on limited group of clients under the supervision of the SEC. The SEC published a news update on their website on June 7, 2017 that stated [...]

Thailand Parliament Makes Business More Friendly

Thailand has recently undertaken a series of Orders by Parliaments that is designed at improving the ease of doing business in the Kingdom of Thailand.  They were published in the Royal Gazette on 4th April 2017 and was in effect that day. Changes are as follows: The Civil and Commercial Code amended to facilitate promoters to register company at any district nationwide instead of registering at the location where a company has been established. Also, the requirement that every certificate of shares [...]

A Guide for Buyers: Property Public Auction in Thailand

The Legal Execution Department is responsible for holding Public Auctions that are listed in its Public Auction Announcements. The sale of properties can range from condos, empty land, factories and commercial buildings.  The properties sold at auction are usually derived from bankruptcy, defaulted mortgages and seized property by the anti-money laundering office. The following outlines the procedures and requirements to purchase a property at auction. Secure bid with the Public Auction Announcement See what’s listed. Buyers are responsible to inspect the property [...]

Thailand: The World’s New Medical Destination, for Services and Investment

The economy of Thailand boasts a thriving, robust medical industry that both leads Southeast Asia and is renowned across the world.  From the world’s leading medical tourism sector to growing sectors in pharmaceuticals, medical devices and implants, and academic research, the Thai medical sector presents a wealth of opportunities, for Thai and foreign patients, as well as entrepreneurs and investors looking for global growth opportunities in the medical field. Relative to its Asian neighbours and compared to global leaders, Thailand [...]

On 2017 and 2018 Public Tenders of Transmission Lines in South of Thailand

On May 2015, The National Energy Policy Committee approved the Power Development Plan for 2015 to 2036 introducing significant changes in different aspects such as on national economy with a less impact on people cost of living, energy security with less dependent on natural gas, environment releasing 37% less carbon monoxide (low carbon society in 2050) and on regional integration with more solid commitment with Asean region. The energy consumption is increasing fast in the South of Thailand but the [...]

Electronics and Electrical Appliances:  The State of Thai Industry

Thailand has long been accelerating into the pack of world leaders in high-technology industries.  Although world leaders like Japan and South Korea currently enjoy advantages in the tech sector, their growth has created space for other countries to move ahead, and Thailand has been pivoting to take advantage of this opportunity.  Being able to provide a highly skilled workforce at a competitive price level, and further occupying a strategic location for global imports and exports, Thailand enjoys several fundamental [...]

VC and Thai Corporations: Navigating Local Law

As the venture capital (VC) market continues to grow, Thai start-ups are a natural focus for VC firms interested in Southeast Asian investment. Start-ups making use of new technology have a need for initial capital, are interested in disrupting existing markets, and offer potentially large equity returns on investment – a perfect asset for the investment portfolio of many VCs, which have the available capital to seed new ventures and bet on the next new thing, rather than financing [...]

Check Legal Issues First for Thai Cash Pooling Option

Since the global economic downturn, cash pooling has become an increasingly relevant option for multinational corporations (MNCs) as a cash management technique. In general, cash pooling is used when MNCs wish to reduce their external financing needs and allow one company, a “corporate treasury centre”, to manage inter-group financing. As each group company normally has its own accounts, these separate accounts are “pooled” together and managed as one net account, allowing group companies to operate under a single financial policy. [...]

Challenges and Regulatory Trends for the Automotive Sector in Thailand

Although the vast majority of global cars manufacturers have already a corporate presence in the Kingdom of Thailand, the three largest manufacturers originally come from Japan: Toyota, Isuzu and Honda. The automobile industry in Thailand as a whole account for 12% o GDP and employ more than 550,000 workers. Due to the economic importance of the automotive sector, Thailand enforces Tax and Non-Tax Incentives under the Board of Investment (“BOI”) scheme as seen in Section 4: Metal products, machinery and [...]

2017 Thailand FinTech Predictions

2017 is positioned to be an exciting year for the development of Fintech in Thailand.  Over the past year, we have seen several key indicators that lead us to believe that a FinTech revolution will start this year. We have identified six areas to watch closely: Thailand 4.0 – The Thai government has placed substantial resources in developing Thailand into a digital economy.  Creativity and Innovation in this digital economy is the main drivers of this initiative.  We predict that [...]

Doing Business in Thailand

As global business continues to grow, mature, and evolve, increasing numbers of international businesses and entrepreneurs enjoy the option of pursuing their business from an international location.  This opportunity can also be expressed as a challenge:  With such a wide variety of potential overseas locations, growing firms need to choose one that provides the best possible fit for the optimal chance at succeeding in an increasingly competitive marketplace. Thailand’s national Board of Investment (BOI) has collected a host of useful [...]

Bank of Thailand Public Hearing on Guidance to Participate the Regulatory Sandbox

Thailand’s FinTech regulation is evolving and 2017 will be an exception year for financial innovation within Thailand.  The Bank of Thailand (“BOT”) has published consultation papers on how the proposed regulatory regime using a “Sandbox” approach will function.  This regulatory sandbox will allow FinTech firms and financial instructions the ability to test their products in a system that will allow real world trials, while providing consumer protection. Silk Legal is pleased to provide an unofficial English translation of the most [...]

Islamic finance: Leaning on Equity

Islamic finance albeit more popular in recent times, has been around for 1400 years. The essence of Islamic finance revolves around the simple notion that wealth must be preserved, invested and circulated. It is rather different from the conventional financial model in form and substance. The cornerstones are set on grounds of social justice. So what is the first thing that one must know about Islamic finance? This financial model, unlike its conventional counterpart, is not based on debt and [...]

Liquidating in Thailand: What Happens When You Need to Close a Company

For businesses seeking to close down shop in Thailand, the legal framework surrounding dissolution and liquidation of assets may seem daunting; however, failure to comply with these processes can generate ongoing fines and criminal liability for directors. Regardless of whether a company elects to, or is enjoined to liquidate, it should carefully follow the prescribed process in order to minimize losses and residual damages. This article provides an overview of key steps to be aware of when closing a [...]

Thailand’s Trade and Investment Support Office

What is a TISO? A Trade and Investment Support Office (TISO) is a category of business that is promoted by the Board of Investment of Thailand. The TISO is not actually a type of business activity per se nor is it an activity specific to any particular industry, but rather it forms a collection of various businesses which are deemed to be potentially supportive of trade and investment in the country in general. As a result, the TISO is a [...]

BOI E-Commerce Platforms in Thailand

Thailand is currently experiencing a massive growth in opportunities related to e-commerce with current estimates for the next five years predicting an average growth of 18.2% per year.  Thailand has one of the highest internet and mobile internet adoption throughout Southeast Asia.  Furthermore, Thai companies that are adopting social media and messaging platforms such as LINE have seen even faster growth as Thais have quickly adopted to purchasing goods and services through mobile devices. Over the past year, Silk Legal [...]

In the Wake of Brexit: What to Expect Across Thailand and ASEAN Economies

Although outcomes of the UK Referendum decision will be felt globally – largely in the form of increased volatility among currencies and stock prices – adverse effects on Asian economies are projected to be relatively mild.  The most considerable damages are expected to land in Hong Kong, Vietnam and India, where trade ties to the UK are strongest; however, damages to region will be limited by Asia’s minimal trade ties to Britain. According to London based research firm, Capital Economics, [...]

FinTech Law in Thailand

You have probably heard about FinTech. Unless you have been living on a deserted island talking to an imaginary friend named Wilson, which can actually happen from time-to-time in Thailand, you will know it is one of the hottest buzz phrases in startups and technology at the moment. Financial Technology “FinTech” comprises of technologies such as blockchain, crowdfunding, peer to peer (P2P) lending, e-wallets, robo advisors, digital platforms, m-commerce, financial analytics, payments, financial security and risk management just to [...]

Loophole From Unlawful Shareholders’ Resolutions

The systems for governance and maintain­ing balance within the management of a company require important mechanisms to successfully meet business objectives and generate value for all stakeholders. Such mechanisms run best when they are specifically stated in writing, and outline who holds the authority to direct the company on the level of management policy. The mech­anisms should be stated in the company regulations, the joint venture agreement, or the shareholders’ agreement. This specification of policy may include matters related to finance, [...]

Importing Alcohol to Thailand

Thai regulations on alcohol products There are two types of alcohol to be imported into Thailand as defined by the Liquor Act of 1950 and the Alcoholic Beverage Control Act of 2008: distilled spirit and un-distilled spirit. Distilled spirits is alcohol over 15% like vodka, rum, or brandy and un-distilled spirit is alcohol under 15% like wine or beer. The Ministry of Finance (Excise Department), which monitors the alcohol industry in Thailand, requires alcohol importers to fill out form “SOR2/74” and [...]

Getting a Mortgage in Thailand

What You Need to Know About Getting a Mortgage in Thailand Though it used to be that Thai home buyers bought houses primarily with cash, savings or through direct arrangement with sellers; that’s changing as Bangkok and other parts of Thailand become more modernized. Today, many Bangkokians opt for the same style of mortgages that are popular through much of the Western world. Here are a few things that might be somewhat different about mortgages in Thailand:   The Age Factor One stipulation [...]

The Truth About Slander and Libel Laws in Thailand

The Truth About Slander and Libel Laws in Thailand Slander and libel laws differ greatly around the world and what might land you in jail in one country could be perfectly legal in another. Here in Thailand, slander and libel are taken seriously. Any record that one person has worked to damage the reputation of a company or individual can be severely punishable. Here’s what you need to know to stay on the right side of Thailand’s slander and libel Laws: The [...]

The Dreaded Thailand 4:1 Employment Ratio

The Dreaded Thailand 4:1 Employment Ratio: Hiring Foreign Employees Have you performed all the steps for your company registration in Thailand? Are you ready to rent an office and hire some employees? Do you have your eye on a few well-qualified expats to fill the newly-purchased empty desks beside you? Well, before you can hire any foreign staff for your Thailand-based company, you need to employ some Thai staff as well. Plenty of them. The Basics If you aren’t familiar with Thailand’s [...]

Monetary Requirements for Retirement Visa

Monetary Requirements for Retirement Visa Dreaming of making the most of your pension by retiring on a gorgeous Thai beach? Looking forward to living in a place where your money goes a bit further and you can finally relax and enjoy yourself? Great. Thailand welcomes retirees and even offers them a special visa. Silk Legal can help you to procure your retirement visa and renew it through each happy, healthy year of your Thai retirement. Any person over 50 years of age [...]

Monetary Requirements for Marriage Visa

Monetary Requirements for Marriage Visa Have you married a Thai citizen or are you considering marrying one? Are you wondering about how to successfully apply for and receive a marriage visa? If so, congratulations on finding love in Thailand and let Silk Legal provide the answers you need to get your marriage visa. Anyone who is married to a Thai national and meets certain financial criteria is eligible to apply for what is officially called the “1-Year Extension of Stay Based [...]

Doing Business with Thais? Stop Offending Everyone!

Doing Business with Thais? Stop Offending Everyone! Whether you’ve been in Thailand for years or are new to the country, you may often find yourself getting funny looks or a cold feeling from some of your Thai colleagues or business contacts. You might even wonder what, exactly, you have done to offend them. Though Thais are very polite and would never be as bold as to say what you have done wrong, they will remember your mistakes. Instead of waiting to [...]

Kharafi Group Scam Alert

Over the past week, Silk Legal has been contacted by numerous companies inquiring about forming a Thailand based company to complete a funding transaction.  Immediately, we became suspicious and started to ask some specific questions in order to identify red flags.  This is simple scam where an investment into a company is promised and the scammer is insisting on creating a Thai company in order to facilitate the investment.  The money is then supposed to flow from the Thai [...]

5 Steps to Getting a Business Visa in Thailand

So many people dream of coming to Thailand to start a business, work for a company and legally remain long-term in the country they love. Conflicting information also abounds about how to get a business visa in Thailand. Here are 5 Steps You Need to Take to Get Your Thai Business Visa: 1 – Letter of Offer: This is a letter offering a work prospect from a company based in Thailand. if you have this, you’ll be able to skip most [...]

Pros and Cons of Startups in Bangkok

Pros and Cons of Startups in Bangkok Thinking about launching your hot new startup in Thailand? Imagining yourself sipping fresh coconut water by the pool with a laptop by your side, living the true entrepreneur’s dream? We at Silk Legal applaud your dream of entrepreneurship in Thailand and hope we can partner with you in your venture. After all, we are the go-to legal firm for start-up law and can help you easily and affordably accomplish legal company formation, secure business [...]