Money Loans in Thailand and Key Issues for the Parties to Consider

If you plan to be a borrower or lender of money in Thailand then there are several key matters which you should be aware of before the loan is made. This legal article shall discuss various key issues which the parties should be mindful of including interest, repayment of the loan & legal requirements for enforcement of a loan.   The Civil & Commercial Code of Thailand – Loan for Consumption A loan of money falls under the classification of ‘loan for consumption’ under the Civil & Commercial Code of Thailand (CCC). This is where a “lender transfers to the borrower the ownership of a certain quantity of property which is consumed by the user and the borrower agrees to return property of the same kind quality and quantity”.   It is worth noting that a loan contract is only […]

What measures can an employer use to cut labour costs in accordance with Thai law?

Given the current economic situation, many employers are in difficult financial circumstances and as such need to cut their labour costs to protect their business. Some of the ways this can be achieved are as follows: i. Temporary Suspension of the Business An employer can temporarily suspend their business (in whole or part) for whatever cause (other than due to force majeure) for a legitimate reason which affects their business and causes the employer to be incapable to operate their business as normal. In order to do this the Employer must do the following: Pay Wages (75%): Pay wages to the employee(s) who are sent home in an amount not less than seventy-five per cent (75%) of wages for working days that were received by the employee before the suspension took effect. This money must be paid to the affected […]

Applying for and complying with a Domestic Recruitment License in Thailand – An Overview

If an investor wishes to get involved in the domestic recruitment business in Thailand then one of the most important issues which they shall need to consider is obtaining and maintaining a Recruitment License. The key law which covers the requirements for this type of license is the Employment & Job Seeker Protection Act B.E. 2528 (1985) (the “Act”). This article shall discuss several issues relating to Recruitment Licenses, such as qualifications and ongoing compliance requirements. Qualifications for a Domestic Recruitment Licensee The Act provides that no person shall be permitted to undertake domestic recruitment services unless they have been granted a domestic Recruitment License from the Central Employment Registrar or the Provincial Employment Registrar (as the case may be). In order to qualify for such License, the applicant must meet the following requirements: Must be of Thai nationality if […]

Impact of the Personal Data Protection Act B.E. 2562 (2019) on Business Operators

In this article we shall examine and discuss certain aspects of the Personal Data Protection Act B.E. 2562 (2019) (PDPA) and the obligations it shall impose on Business Operators that collect and use Personal Data[1] of their customers, suppliers, contractors or their employees (collectively the “Data Owner(s)”).[2] It is also worth noting that a Royal Decree has postponed the enforcement of most sections in the PDPA by a year (until 31 May 2021). Requesting Consent from a Data Owner of Personal Data Under the PDPA, a Business Operator is permitted to collect, use and disclose received Personal Data, provided that the received information comes from lawful processing. This means that the Business Operator must have received consent from the Data Owner in the form of a legally compliant request for consent. To have a legally compliant request for consent, the […]

Making A Will in Thailand and Issues to be Aware of

If you are considering making a Will in Thailand, then before doing so there are several things which you should carefully consider. This article will discuss a range of matters relating to Wills and applicable Thai law so that you can ensure that your legal interests are protected, and your Will meets the legal requirements under Thai law. Different Types of Wills under Thai Law The Thai Civil & Commercial Code (the ‘Code’) provides that a Will in Thailand can only be made in one of the five following ways, these different approaches are detailed below: Type 1 – In writing (the text of the Will could be typed by a lawyer or the testator or their legal representative) The Code stipulates that a Will can be made in writing provided that:      a. it is dated as of the time […]

Buying a Condominium in Thailand – Key Issues for Foreign Buyers to be Aware of

Under Thai law, foreigners (which includes natural persons, foreign registered companies or foreign majority owned Thai registered companies) can own up to forty-nine percent (49%) of the space of all units in a registered condominium. In this article we shall discuss several key matters which foreign investors should be mindful of before purchasing a condominium unit, including the sale & purchase contract, applicable fees and taxes, due diligence, and documents required to register the transfer of ownership at the Land Department. Foreigners should also be aware that there are two types of residential apartment buildings in the Kingdom, these are: condominiums registered and licensed with the Land Department, these offer ownership over the separate condominium units [Freehold]; and Apartment buildings which are not licensed as a condominium thus not offering individual ownership over the units within them [Leasehold]. Foreign buyers […]

Things to Consider Before Signing a Contract for the Sale and Purchase of Goods in Thailand

Things to Consider Before Signing a Contract for the Sale and Purchase of Goods in Thailand Before signing a contract for the sale and purchase of goods in Thailand there are several key issues which the parties should consider to ensure that their rights are adequately safeguarded. In this article we shall examine a range of important issues and shall provide practical tips to help protect the legal rights of the Buyer and Seller & to minimize their respective liability. Transfer of Ownership: Arguably one of the most important issues which a Buyer or a Seller of a product/good should consider is when transfer of legal ownership of the goods/products occurs. According to the Civil & Commercial Code of Thailand (hereinafter referred to as the ‘CCC’ or the ‘Code’) ownership of property sold is transferred to the Buyer from the […]

Issues to Consider when a Private Company Applies for a Foreign Business License under List 3 of the Foreign Business Act (1999)

Issues to Consider when a Private Company Applies for a Foreign Business License under List 3 of the Foreign Business Act (1999) If an investor is considering having a private company in Thailand sell goods and services as listed under List 3 of the Foreign Business Act (FBA) and they desire for the Company to be majority foreign owned, then unless they obtain legal permission to do so through such legal means as the granting of BOI promotion privileges or protection under the Thai-US Treaty of Amity then they shall need to have the company apply for and obtain a Foreign Business License (FBL) from the Ministry of Commerce (MOC) in order to be permitted to carry out such activities. This article details the main parts which make up a FBL application as well as key challenges faced when applying […]

DLO’s CSR Activity at Thummanurak Foundation on Saturday 14 December 2019

On Saturday December 14, 2019, staff and management from Dharmniti Law Office visited the Thummanurak Foundation located in Karnchanaburi Province. During the visit staff DLO donated money, sporting equipment, clothing and stationary for needy children supported by the Foundation. DLO is proud to be involved in supporting this Foundation and looks forward to future visits and helping those in need.