A foundation in Thailand is a non-profit organization governed by the Civil and Commercial Code and Articles of Association promoting public welfare, education, religion, art, and culture. It operates independently and aims to make a positive impact on society through charitable endeavors. Organizations must satisfy specified conditions and register with government authorities in order to be recognized as a legal foundation.
Establishing a foundation in Thailand offers numerous benefits for both the organization and the communities it serve. These include social impact, tax benefits, legitimacy and credibility, access to funding, limited liability, flexibility in objectives, longevity and continuity, and network and collaboration. Registration with the appropriate government authority benefits a foundation by allowing it to legally enter contracts with local organizations, enabling it to partner with civic groups and raise funds effectively. Furthermore, registered foundations in Thailand can benefit from tax exemptions or reduced rates, while also ensuring the foundation’s reputation and trust among donors, beneficiaries, and stakeholders. However, establishing and running a foundation requires dedication, proper management, and compliance with relevant laws and regulations.
Foundations in Thailand must fulfill various obligations to maintain their legal status and comply with the law. These include:
The fundamental distinction is in their legal structures and registration procedures. Foundations are created under the Thai Civil and Commercial Code, whereas non-governmental organizations (NGOs) are registered with the Thai Ministry of the Interior. NGOs have a broader range of operations, whereas foundations are often focused on specific charity goals.
Yes, foreigners can establish a foundation in Thailand, but they must comply with the laws and regulations governing the establishment of foundations. Therefore, it is best to get legal counsel to verify that all criteria are met.
The process can take a year, or longer.
The specific requirements and criteria for foundation approval may vary based on the foundation’s activities and objectives, so it is recommended to consult with legal professionals or government authorities for accurate information on establishing a foundation in Thailand. Our lawyers can help and guide you.