Robert Thailand

I heard from Tod Daniels that another update is coming this weekend. Tod Daniels told me yesterday, he was at immigration in Bangkok yesterday.

In Thailand there are restrictions when it comes to minors (those, under 20 years old) owning or buying property. According to the Thai Civil and Commercial Code minors are not considered capable of engaging in transactions and any agreements made by a minor require the consent of their legal representative – typically a parent or guardian. Typically if a minor wants to purchase property they would need consent from their representative. In your daughters case this would usually involve her parents or guardian. Unless you have full and sole parental powers, the mother will have to sign. And remember that Pattaya = tea money. In cases where the mother's deceased and no Thai relatives are available a legal guardian or an executor appointed by the court or through a will would be responsible, for making decisions regarding matters. But I doubt this is the case. Even though laws are nationwide local land offices in places like Jomtien, Pattaya may have some leeway in how they interpret and implement rules especially regarding matters. It's important to reach out to the land office in that area to grasp their protocols and prerequisites. Like you say : Thai bureaucracy and they love tea ($) in Pattaya. Considering your wish to exclude the mother and the complexities of a buying a condo, in Thailand it's highly advisable to consult with a lawyer specializing in Thai property and family law. They can guide you through guardianship issues, purchasing procedures and ensure your daughters interests are well looked after and legally protected.Verify with the mother. Maybe she will agree. And verify with the land department too. Or wait 4 years, put it on your daughter and make a usufruct to you. That can't be done by a child (1574 of Civil Code)

Why would a foreign company lease land if not for operating a business? The land departments in Thailand distinguish even between Thai companies. Their rationale is that a company exists to make a profit, a concept I have previously observed.

Yes, companies that have obtained Board of Investment (BOI) promotion privileges can lease land in Thailand, and under certain conditions, they may also be granted the right to own land. This is an exception to the general rule prohibiting foreign ownership of land in Thailand. BOI-promoted companies are eligible for various incentives, one of which may include the right to lease or own land for the purpose of the promoted business. These privileges are granted to encourage foreign investment in sectors that Thailand considers beneficial for its economic development. For non-BOI companies, including Singaporean companies, leasing land for business purposes is indeed subject to the Foreign Business Act (FBA) B.E. 2542 (1999). This legislation outlines the types of businesses that foreigners can engage in—some sectors require a Foreign Business License, others are strictly prohibited, while some may operate free of restrictions. When a foreign company leases land in Thailand for business purposes: The lease must be structured to comply with the FBA, including obtaining a Foreign Business License if the business operations fall within the categories regulated by the Act. The Land Department may ask for documentation pertaining to the foreign company, which would likely need to include a certified translation into Thai, possibly legalized or notarized according to Thai law requirements. The lease agreement must be registered with the appropriate Land Office for it to be enforceable. (if more than 3 years according to the 540 of the Thai commercial and Civil code). BOI-promoted companies are typically exempted from some of the restrictions under the FBA, which allows them greater freedom in conducting their business, including in matters related to land.

In Thailand, a foreign company may lease land, but there are certain restrictions and conditions that need to be met. Under the Land Code Act B.E. 2497 (1954) and its amendments, Thai law generally permits leasehold interests in land for up to a maximum term of 30 years. This maximum term can apply to both Thai nationals and foreign entities, including companies incorporated in Singapore. Moreover, if the lease is for industrial or commercial purposes, the lease term can be renewed beyond the initial 30 years, subject to agreement between the parties and in compliance with relevant laws. Renewal must be registered to be enforceable. There are additional requirements for foreign entities leasing land in Thailand: The lease agreement must be in writing and registered with the competent Land Office to be legally effective. The lessee may be required to obtain a Foreign Business License under the Foreign Business Act B.E. 2542 (1999) if the activities conducted on the land fall under the categories of business restricted for foreigners. A company is different than a person. Why does a company lease in Thailand? For business? If the foreign company is operating under the Board of Investment (BOI) or Industrial Estate Authority of Thailand (IEAT) promotions, special privileges, including the ability to lease land for longer periods, may be granted. It would be easier to simply make it under the name of the Singaporean person.