MAKING FOREIGN INVESTMENT IN THAILAND A CORPORATE GUIDE 2015 Contents INTRODUCTION TO THAILAND .................................................................................................................. 04 THAI LEGAL SYSTEM ....................................................................................................................................... 05 1. Constitution ......................................................................................................................................................................................05 2. Formation of Law ............................................................................................................................................................................05 FOREIGN INVESTMENT .................................................................................................................................. 06 1. Definition of ‘Foreigner’ ................................................................................................................................................................06 2. Categories of Restricted Business ..............................................................................................................................................06 3. Investment Promotion Act and Board of Investment ............................................................................................................06 4. U.S.-Thai Treaty of Amity ..............................................................................................................................................................08 5. Other Laws .......................................................................................................................................................................................08 REAL ESTATE ...................................................................................................................................................... 10 1. Foreign Ownership of Land ..........................................................................................................................................................10 CORPORATE VEHICLES .................................................................................................................................. 12 1. Private Limited Companies ...........................................................................................................................................................12 2. Public Limited Companies .............................................................................................................................................................13 3. Branch ................................................................................................................................................................................................15 4. Partnerships (3 types) ....................................................................................................................................................................16 5. Representative Offices ...................................................................................................................................................................17 TAXATION .......................................................................................................................................................... 19 1. Overview ...........................................................................................................................................................................................19 2. Double Tax Agreement .................................................................................................................................................................23 3. Anti-Avoidance Rule .......................................................................................................................................................................24 DISTRIBUTION OF PROFITS TO OVERSEAS.............................................................................................. 25 1. Dividends ...........................................................................................................................................................................................25 2. Thai Exchange Control Law ..........................................................................................................................................................25 EXCHANGE CONTROL REGULATIONS IN THAILAND .......................................................................... 26 1. Exchange Control Regulations .....................................................................................................................................................26 2. Bank Deposits ..................................................................................................................................................................................26 3. Trade and Services ..........................................................................................................................................................................27 4. Foreign Investments ........................................................................................................................................................................27 5. Capital Transfers by Thai Residents ...........................................................................................................................................28 6. Reporting ...........................................................................................................................................................................................28 02 | Making Foreign Investment in Thailand – A Corporate Guide 2015 APPLICATION FOR WORK PERMIT AND VISA .......................................................................................... 29 INTELLECTUAL PROPERTY ........................................................................................................................... 30 1. Trademarks .......................................................................................................................................................................................30 2. Patents ................................................................................................................................................................................................30 3. Copyrights .........................................................................................................................................................................................31 SECURITIES LAWS AND REGULATION ...................................................................................................... 32 1. Regulatory Framework of the Capital Market .........................................................................................................................32 2. Securities Offerings .........................................................................................................................................................................32 3. Takeover Regulations .....................................................................................................................................................................34 4. Roles of the Stock Exchange of Thailand ..................................................................................................................................35 5. Operations ........................................................................................................................................................................................35 6. Trading Methods ..............................................................................................................................................................................35 7. Off-Hours Trading...........................................................................................................................................................................36 LISTING ................................................................................................................................................................ 38 1. General Listing Criteria for Common Shares ..........................................................................................................................38 2. General Listing Criteria for Listing on MAI ..............................................................................................................................40 3. Criteria for Companies Engaged in Infrastructure Projects ................................................................................................41 4. Listing Criteria for Holding Companies ....................................................................................................................................42 5. Criteria for Renewable Power Generation Companies ........................................................................................................43 6. Criteria for Real Estate Investment Trust (REIT) ...................................................................................................................44 7. Listing Criteria For The Infrastructure Fund ...........................................................................................................................45