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Price Sanond - Lawyers in Bangkok, Thailand

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Longstanding relationships throughout Asia.

Long-standing counsel to major multinational corporations in Thailand.

Experience matters - one of Thailand’s oldest law firms.

An established practice representing major Japanese companies in Thailand.

Go to our Knowledge section to access information from our library.

Responsive to the needs of clients in a dynamic business environment.

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A fast-growing economy and a fast-changing business environment.

Real Local Experience, Real Business Solutions.

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Introduction to Relevant Laws

The laws and regulations in this area are complicated and sometimes overlap. Further, consistent with the growth of the Thai economy and the emergence of a larger middle class, Thai law, custom and practice is changing rapidly in this area, particularly in the area of zoning and new requirements for environmental impact assessment reports.

Category: Environmental and Construction

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Investment Restrictions Generally

The most important law governing foreign investment is the Foreign Business Act (FBA). The FBA restricts "aliens" [foreigners, defined in terms of share capital] from engaging in an exceptionally broad range of business activities…The FBA imposes substantial penalties on both aliens and Thais who acts as "nominees" of an alien for purposes of violating the FBA, but provides no guidance on what constitutes an illegal nominee for purposes of the FBA.

Category: Investment Related Laws

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Intellectual Property Rights

Thailand recognises intellectual property rights and, in general, intellectual property protection legislation is consistent with international practice . . . Thailand is a signatory to several international agreements and conventions pertaining to intellectual property rights. Despite this legislative framework for the protection of intellectually property rights, many intellectual property right holders complain about the effectiveness of enforcement practices in Thailand.

Category: Intellectual Property

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What is the NBTC?

The Senate’s appointment of 11 members to the National Broadcasting and Telecommunications Commission (NBTC) in September of 2011 and the investigation into the appointment process by the Department of Special Investigations have attracted considerable media attention recently, but what is the NBTC and what are its powers and duties?

Category: Telecommunications

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Workplace Relations in Thailand

The climate for workplace relations in Thailand is generally very stable and hence favorable for foreign investors. Large-scale, acrimonious labour disputes are relatively uncommon in Thailand. Labour relations are, however, much more highly regulated than they are in countries such as the US. For example, Thailand does not have “at will” employment.  Thai labor law tends to be more prescriptive than U.S. labor law.

Category: Employment & Labour

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Hotels & Hospitality Sector in Thailand

…various enterprises locally and from all over the world have already set up and operating in Thailand and additionally are in various stages of planning future new hotels, resorts, serviced apartments, timeshare structures, fractional ownership arrangements, condotels, destination or vacation clubs…In structuring any types of hospitality products, a wide variety of legal issues and processes arise and need to be addressed and implemented.

Category: Hotels & Hospitality

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Thai Business Structures

A private limited liability company is commonly used when a more permanent presence is needed in Thailand. Up until 1 July 2008, a private limited liability company was required to have at least seven shareholders. Starting 1 July 2008, a private limited company only requires three shareholders. A private limited liability company is managed by a board of directors responsible to the company's shareholders…

Category: Corporate/M&A

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Thailand’s Product Liability Law and Consumer Case Procedures Act

The Product Liability Act provides that the plaintiff only carries the burden of proving that the damage was caused by a product in “ordinary use or storage”, and explicitly states that the plaintiff does not have to prove that the damage is due to an act of the business operator. There is no requirement that the plaintiff prove that the product forming the subject of the claim is an “unsafe product”.

Category: Consumer Protection and Regulatory Compliance

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Securities 101

Thailand’s Securities and Exchange Act B.E. 2535 is the main source of securities legislation, and the Securities and Exchange Commission of Thailand (SEC) performs the functions of the capital market supervisory agency with the status of an independent state agency. Most large public companies in Thailand list their shares on the Securities Exchange of Thailand (SET), the country’s main securities exchange. Currently over 500 listed companies with a total market capitalization in excess of US$250 billion are traded on the SET.

Category: Securities

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Work Permit and Visa Rules in Thailand

Any foreigner working in Thailand must have a work permit before commencing work, and the definition of work is extremely broad. Work is defined as "engaging in work by exerting energy or using knowledge whether or not in consideration of wages or other benefits." Many foreigners find this broad definition of work counterintuitive because it can encompass such short-term activities as participating in a single business meeting.

Category: Visas & Work Permits

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Income Tax Reduced for Juristic Entities

On 21 December 2011, the Thai Government announced in Royal Decree (No. 530) B.E. 2554 the following reductions to juristic income taxes:

Category: Taxation

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Litigation & Arbitration in Thailand

Thai Courts will not enforce foreign judgments or forum selection (choice of court) clauses.  This can lead to some interesting and counterintuitive results when trying to negotiate the resolution of a dispute over a contract that has a forum selection clause that purports to provide a court outside of Thailand with jurisdiction over that dispute.

Category: Dispute Resolution

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The Dodd-Frank Act: Whistle-blower Rewards in FCPA Cases

…but it [the Frank-Dodd Act] also permits whistle-blowers in Foreign Corrupt Practices Act ("FCPA") and securities fraud cases to claim a 10% to 30% reward in enforcement actions where the penalties recovered exceed U.S.$1 million.  Because penalties in several recent FCPA cases have been in the hundreds of millions of dollars, these provisions of the Dodd-Frank Act could have an important effect on FCPA enforcement.

Category: Anti-Corruption Laws

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Overview of Thai Bankruptcy Reorganization Law

Bankruptcy laws often require courts and parties to make hard choices. In a bankruptcy there is simply not enough money to satisfy everyone, and difficult decisions must be made about who gets what. In a bankruptcy, property is seized, reputations are ruined, contracts are dismembered and jobs are lost. Thai law only provided for the liquidation of bankrupt parties up until the late 1990s and this procedure was used very infrequently. Following the 1997 financial crisis in Southeast Asia,...

Category: Insolvency & Restructuring

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Mortgages and Other Forms of Security Under Thai Law

Security is collateral that is provided to guarantee fulfillment of an obligation. The obligation is often a debt, but this is not always the case. The term "mortgage" is often used interchangeably with the term "security". From the perspective of a creditor, the primary value of security is that a secured creditor should, in theory, be able to force a sale of the collateral and use the proceeds to pay the secured debts ahead of other creditors (although in many jurisdictions bankruptcy and reorganization proceedings often place limitations upon such rights). Security can take many forms; in some jurisdictions security interests are not only available against real estate, but also against inventory, accounts receivable, equipment and even intangible property such as intellectual property rights. The types of property that can be mortgaged in Thailand in comparison to other jurisdictions, however, are quite limited. In this article, we discuss some forms of securi...

Category: Banking & Finance

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Real Estate in Thailand

As a general rule (there are exceptions) foreigners cannot directly own land in Thailand. Indeed, criminal penalties (fines and imprisonment) potentially apply if a foreigner illegally owns property in Thailand . . . Faced with restrictions on land ownership, nominee arrangements are often proposed using Thai private limited companies or other structures. Such arrangements pose substantial risks . . .

Category: Property

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Immigration Department To Require Written Confirmation of Expats' Residency

Foreigners who are required to contact the Immigration Department for such routine matters as obtaining re-entry permits, long term visa renewals, and other similar items will be faced with another regulatory requirement.  In addition to other items currently required in support of such applications, foreigners must now submit a notification form reporting their residence.  While this requirement has been in effect for some time, it has not been strictly enforced by the Immigration ...

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NBTC Delays 4G Auction

The National Council for Peace and Order (NCPO) has ordered a one year delay in the auction for licenses for the 4G mobile phone spectrum planned by the National Broadcasting and Telecommunications Commission (NBTC) as reported here. The economic consequences of the delay will be significant. California-based research firm Frost & Sullivan has estimated that it will cause a potential opportunity loss of up to US$1 billion (Baht 31.9 billion ) from 4G network investment and an additional $3...

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Japanese Officials Prosecuted For Bribery Involving Vietnam Railway Projects

The Japan Transport Consulting Corporation (JTC) has participated in over a dozen railway projects in Vietnam since 1993 in connection with Japan’s Official Development Assistance (ODA) program.  Following discoveries made by Tokyo tax authorities in April 2013 of several unusual expenses related to JTC’s ODA projects, JTC and three of its officials are being prosecuted for giving bribes totaling 69.9 million yen to officials of the Vietnam Railways Corporation over a four ye...

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Thai SEC To Permit Foriegn IPOs And Dual Listings

Foreign companies will be able to list their initial public offerings in the Thai capital markets, as stated in a news release by the Thai Securities and Exchange Commission (SEC).  Foreign companies will also be permitted to access the Thai capital markets for dual offerings in connection with offerings in other countries simultaneously or within a "proximate period".  Thai-based companies with majority foreign shareholders and an overseas core business will als...

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New Article on Exemptions to Thailand's Urgent Work Permit Requirement

Please see our new article highlighting the Council of State's list of exemptions to Thailand's urgent work permit requirement here.   For more information on visas and work permits in general, please see the knowledge section of our website here.

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Price Sanond, Bangkok