Key Excerpts from Thai Laws for Setting Up a Foundation in Thailand

Last updated on April 12, 2026

This resource includes English translations of important parts of Thai laws. It supports our guide on Setting Up a Foundation in Thailand. Excerpts are unofficial and for informational purposes only, not legal advice. Always consult a licensed Thai lawyer for official interpretations. Sources include adaptations from Krisdika, Revenue Department guidelines, and academic repositories (verified as of 2023/2024). For full texts, visit official sites.

Section 1: Civil and Commercial Code (CCC) – Foundation Establishment and Operations
Section 2: Revenue Code – Tax Exemptions and Obligations for Foundations
Section 3: Ministerial Regulations on Foundation Registration (B.E. 2545/2002)
Section 4: Summary of Proposed Draft Act on Associations and Foundations (2024)
Section 5: Sources and Additional Resources

Section 1: Civil and Commercial Code (CCC) – Foundation Establishment and Operations

These excerpts from the Thai Civil and Commercial Code B.E. 2468 (1925, as amended) discuss foundations. They cover definitions, registration, management, and dissolution in Sections 110-136.

Section 110: Definition of Foundation

A foundation is property appropriated to public charity, religion, art, science, literature, education, or other public benefit purposes, not for profit-sharing among individuals.

Section 114: Objectives and Registration

The objectives of the foundation must be clearly stated, lawful, and for public benefit. Registration requires approval from the registrar, with details of assets, board, and rules.

Section 115: Board of Directors

A foundation must have a board of at least three directors responsible for management. Directors must act in accordance with the foundation’s objectives and Thai law.

Section 118: Management of Assets

Assets must be managed solely for the foundation’s objectives and cannot be used for personal gain or profit distribution.

Section 120: Annual Reporting

The board must submit annual reports on activities, finances, and progress toward objectives to the registrar.

Section 131-136: Dissolution

Section 131: Dissolution occurs if objectives are achieved, impossible, or unlawful. Section 134: Remaining assets must transfer to similar organizations, not to founders. Penalties apply for misuse or non-compliance.

Section 2: Revenue Code – Tax Exemptions and Obligations for Foundations

Here is a simplified version of the text:”Parts of the Thai Revenue Code (updated to 2024) about taxes for non-profit foundations (Sections 47-49).”

Section 47: Tax Exemptions for Public Benefit Organizations

Income from donations, membership fees, and activities that help the public is not taxed. This is true if the foundation meets the requirements and follows the reporting rules.

Section 49: Tax on Other Income

Business-related income is taxed at 2%, and other income (e.g., investments) at 10%. Non-compliance may result in full corporate tax rates (up to 20%) and penalties. Foundations must register for tax within 60 days of establishment.

Section 3: Ministerial Regulations on Foundation Registration (B.E. 2545/2002)

Key provisions from the Ministerial Regulation issued under the CCC, governing capital, application, and oversight (issued by the Ministry of Interior).

Capital Requirements

Minimum capital: 500,000 THB. You can use 250,000 THB if you have at least 100,000 THB in cash. This applies to certain public charities like education, health, or social welfare. Funds must be deposited in a Thai bank and used only for foundation objectives.

Application Process

Submit to the local registrar with documents including objectives, asset lists, board details, and rules. Review may take 6-12 months; rejection possible if objectives violate public order or security.

Ongoing Compliance

Annual audited financial statements must be submitted. The Department of Provincial Administration oversees activities to ensure non-profit status.

Section 4: Summary of Proposed Draft Act on Associations and Foundations (2024)

This is a summary of the draft bill. It has not been enacted as of 2025. This bill is based on proposals from the Ministry of Interior made in October 2024. It aims to regulate NGOs more strictly.

Key Provisions

Mandatory registration for all associations and foundations; unregistered groups may be banned with criminal penalties. Requires at least 30 members; allows inspections without warrants; permits dissolution for actions “contrary to public morality” or threatening “national security.” Burdensome reporting on foreign funding, with thresholds set by ministerial announcement.

Potential Impacts

May restrict legitimate charitable activities; criticized for potential violations of international human rights standards (e.g., freedom of association under ICCPR).

Section 5: Sources and Additional Resources

Disclaimer: These excerpts are simplified translations. For personalized advice on setting up a foundation, contact ThaiLawOnline.

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