Season Greeting

Season Greeting
Happy New Year

Friday, December 31, 2010

Welcome to Koh Phangan


@ Koh Phangan

Welcome to Koh Phangan, a lush tropical island paradise, unspoiled white sand beaches and outstanding natural beauty.

if you haven't been to Koh Phangan lately, then it is definitely worth the trip. Thankfully with ever improving connections between the islands of the Gulf of Thailand, getting there has never been easier. There are many ferry companies as well as speedboat tour outfits offering transfers, but for speed and comfort I would recommend either the Seatran ferry service which leaves from Na Thonn at 10:30 and 17:00 daily taking thirty minutes, or the Lomprayah company which leaves from Bangrak at 08:00 and 12:00 and takes just twenty minutes. Tickets can start as little a 250 Baht depending on seasonal deals.

Once you arrive you find yourself at the formous or informous FULL MOON PARTY town, Haad Rin. The town has had a lot of development over the past three years and if you haven't been here for a while, you may not recognize all the changes. There are still many lovely resorts among the sprawl with the best between Leela Beach and Baan Tai.

Once outside of Haad Rin you are in for a wonderful surprise. THe new road on the west coast has made driving the hills and adventure and a pleasure. Some of the most breath taking views can be found here, making it worth the stop at the viewpoints. if your timing is right, the mixture of the sunset, sea and sky will carry you into a dream like state.

Further on you will arrive in Baan Tai, a charming little village, mixed with a few stylish shops and resorts. The Baan Tai junction will take you to anywhere you want to go on the island. West will take you into Thong Sala, the Thai town know for its markets and ports. Continuing north around the west coast, you will run along some beautiful beaches and tourist resorts. Finally the road circles its way back from the fishing village Chaloklum.

From Baan Tai, you can take the junction northest to the Thong Nai Pan bays. The dirt road gets a little choppy through here but it's worth the drive if you plan to stay overnight. There are also some very attractive waterfalls and hiking trips where the natural spendour is beyond expectations.

The slow pace of development has been good for Koh Phangan, as has the influence of its regular visitors on the local economy. Land here has been kept in the family much longer, keeping out unscrupulous developers and allowing the island to mature slowly with its expanding market. The result is pleasing with an environmentally conscious population who truly care about the island that is their home. A unified approach to developing in harmony with the beautiful natural surrounding is the aspiration.








Legal Update

5 Legal Tips @ Koh Phangan


With the imminent arrival of high season, Koh Phangan anticipate a significant increase in the number of visitors and a corresponding increase in the number of real estate transactions as visitors seek to acquire a more permanent presence in paradise. Christian Glanville-lawyer, sets out five "Legal Tips" for potential investors to consider when investing in real estate in Koh Phangan.

1. Check the Developer in Off-Plan Transactions
It important make independent enquiries into the indentity and substance of the property developer in off-plan real-estate transactions. Investors should consider asking the developer to provide a resume, setting out its prior experience in the real estate sector, whether in Thailand or overseas, and listing previous projects which have been completed by the developer. Investors should consider making independent third party enquiries to corroborate the information provided by the developer, such as visiting completed projects.

it is also important to ascertain how the developer intends to finance the construction of the project, if the developer is relying solely upon deposits paid by buyers to finance the build, it is important to establish what the consequences will be if the developer fails to sell out the project or existing buyers are unable to maintain payments.

if a development is "Branded" by an internationally recognised brand, it is important to check the terms of the agreement between the developer and the brand and to determine the consequences of the brand terminating the agreement with the developer and rendering the project "Unbranded"

2. Check the Land
It is important to avoid assumptions with regards to the legality of the title to the land that investor is seeking to acquire an interest in.  The existence of a number of previous owners does not automatically mean that the land has good title. Land Titles in Thailand require professional review of original land title documents actually physically present at the relevant land office to determine whether or not the seller actually owns the land and whether or not there are any encumbrances registered over the land.

The history of the land title undeneath the property should be thoroughly reviewed by a legal representative and a comprehensive report should be issued with a clear opinion on the quality of the land title. It is important to establish whether or not the land has full legal rights of access both on foot and by vehicle and access to the electricity grid, water supply and drainage. Careful consideration must be given to the zoning, environmental and planning restrictions which apply to the land.

3. Check the Legal Structure
It is important for potential investors to be aware that with limited exceptions, there is a general prohibition against foreign investors acquiring ownership of freehold land in Thailand. Foreign investors can legally acqquire a condominium unit "foreign freehold" long leasehold with renewal period of 30 years renewal; collective ownership leasehold schemes (where owners committees share indirectly the freehold interest through corporate management structures) and in select and qualified circumstances, through investment into Thai companies ( subject to strict qualifying criteria ). As an additional protection, investors should be aware that foreigners can legally own buildings in Thailand.

It is important for a foreign investor to ensure that the legal structure of the project complies with Thai law, maximizes the investor's legal protection and is appropriate to the purchase transaction in question. It is also imortant to ensure that the legal structure actually works, for example, in long term lease structures, very careful consideration must be given to the lease renewal provisions to ensure that the risks of the lease not being renewed at the end of the first 30 years registered lease term are minimized.

4. Check and Negotiate the Terms of the Sale and Purchase Agreement.
THe Sales and Purchase Agreement should clearly set out the key terms of the agreement between the parties including the price, payment terms, descriptioin of the property and the interest acquired and provisions relating to the registratioin of the legal transfer of ownership to the buyer.

The Sale and Purchase Agreements should also clearly stipulate who shall be responsible for taxes and registration frees relating to the transfer of the legal interest in property and stipulate the consequences of a breach of the Agreement by either party.

All significant verbal representations or assurances made by the seller/developer should be expressly incorporated into the terms of the sales contracts so as to minimize any ambiguity as to what was agreed between the parties.

Investors can protect beneficiaries, reduce tax liabilities and have a more saleable set of documents relating to their investment through the effective negotiation of the terms of the Sale and Purchase Agreement with the seller/developer.

5. Avoid Surprises Through Research and Understanding.
Foreign investors into real estate in Thailand must acknowledge and adapt to the difference in law and commercial practice in Thailand. Being prepared is an essential part of a safe investment. Finally, whilst advice form friends who may already have acquired an interest in property in Thailand can help, it is always prudent to instruct independent legal advisor to guide you through the differences in law and commercial practice and assist you to understand the nature and potential hazards of the intended investment.

(This artical was written by Christian Glanville )

Thursday, December 30, 2010

Legal 2

Visas and Work Permits

I have recently been asked to clearify the way the Thai system works with visas and work permits if you are opening a company here and would like to have a work permit.
Firstly I must point out that each Thai province does follow slightly different guidelines and my information does in no way substitute you actually having a legal consultation with a reputable lawyer's company if you actually intend to work.

There are those that believe the little they would do in reality would make a work permit hardly worth the trouble. This is a big mistake and one that could cost you more problems than you would believe. The Thai Immigration takes cases of foreigners working without a work permit very seriously and the penalties so harsh. If you are here on tourist visa you cann't in any way partcipate in a job.

So let's have a look at what's actually required to apply for a work permit. Firstly you  need to have a business class visa which in most cases will have to be applied for at a Thai Consulate outside of Thailand. There have recent changes to the system, whereby smaller Thai embassies such as the one in Penang, Malaysia, have stopped issuing multiple entry visas. Initially there were those who whispered that the only way to arrange these multiple entry visas was for the individual in question to return to their home country and obtain the visa from their local Thai embassy.

This however had been proved to be incorrect with the embassy in Kuala Lumpur still issuing multiple entry visas until recently, but currently the situation remains in a state of flux with even legal profession sls unsure as to the long term guidelines. We therefore strongly advise obtaining up-to-date legal advice well in advance of pursuing your visa run, to ensure you are fully equipped with the documentation currently required for your business visa.

Those working in Samui who earn a salary of 50,000 Baht per month however, shouldn't hae to face these visa run hassles, as they're entitled to a business visa that only needs to be renewed once per annum at an immigration office. Further details of this scheme can be obtained via a legal professional or at the local immigration office in Na-Thorn. Either way, once you have the correct visa, you'll be able to apply for or renew your current work permit. Once again, there are procudures required for this, which your legal professional will prepare for you.

This process might seem tedious, but it is nothing unudual, whith every country having its own precdures and legal applications. Thailand is no different and don't be fooled by the laid back adna casual attitude of many Thai people on the island, as this is no reflection of the order required in any formal legal requests such as visa or work permit applications. When it comes to legal matters you need to ensure you follow the correct procudure and can produce the appropriate paperwork. All in all, it is easy to see why the services of a professional and thorough legal company are invaluable, saving you much confusion, stress and potentially time and money.

Beautiful Koh Phangan

Beautiful Ko Phangan


is the "little sister" of Ko Samui a few miles further out in the Gulf of Thailand. Ko Phangan is specially known for the famous beach parties starting somewhere in the late afternoon and more or less open ended.
According to what you might consume during the party you could forget everything, hot stuff producing a lot of fantastic imaginations and not so hot stuff makes many happy during the beach party in Ko Phangan and lety ou forget the problems. Beaches on Ko Phangan have breathtaking panoramas, fine sand and granite boulder.
Myriads of Restaurants in Ko Phangan (some right on the beach) with the usual wide selection of tasty seafood, curries, white meat and red meat (not so popular among Thais) give you any reason to be happy in Ko Phangan Thailand. Beer fill up stations, some call them bars, are plenty and a might be companion is almost for sure waiting there. Moving around the island is quite easy, rent a car or a "motocyc" to reach most of the scenic spots in Ko Phangan.
Ko Phangan Thailand has around 10.000 permanent residents and the local ones have their roots in the Malay Peninsula and in southern China. It is not known when the first came to the island,  Ko Phangan island Koh Phangansouthern Thailand is definitely a place to visit.

A beauty among other Thailand beauties Koh Phangan

The islands of southern Thailand have picturesque beaches, moderate tropical climate and unique, extremely relaxing lifestyle account for this reputation. Travelers from all over the world come to these southern Thailand islands to experience the famous

transition to another dimension, as they gradually absorb the overwhelming serenity and ephemeral separation from the dynamic and straining modern life style.
For a inexperienced traveler at the very first stages of planning his or her trip to Koh Phangan Thailand, all "paradise islands" may look more or less the same: all the islands are tropical (in the classic sense and climate wise), picturesque and serene. But in fact, a more thorough perspective would reveal that each island, just like every individual traveler, has its own set of unique qualities. The cost of stay in some islands can turn out to be a surprisingly expensive experience, while visiting other islands can be quite a bargain; some islands are dramatically peaceful while others are loaded with exciting nightlife activities; some islands provide the perfect conditions for divers while others are ideal for backpackers.
After years of intensive research the conclusion is Koh Phangan is no doubt and by far the perfect choice for the perfect vacation. Koh Phangan is the perfect choice because it has this unique ability to adopt itself to the likes and needs of every individual traveler in the limits of being an island (except from providing the ultimate urban environment. But nobody visits the Thai islands to relive his urban daily lifestyle). Here are the five elements that make Koh Phangan the ultimate vacation choice:
-Excellent value for your money. Until recently, Koh Phangan had a strong reputation of a backpackers' island. As a result, the island's costs of living had been adjusted to the target audience. Food and accommodation on the island cost surprisingly low, so that even a backpacker with a budget of 30$ per day can provide himself or herself with a reasonable, almost western life standard on the island, which includes air conditioned rooms and delicious cuisine. During the last several years, when more spoiled tourists discovered this island, local entrepreneurs began to invest in luxury accommodation. Nevertheless, the best quality accommodation in Koh Phangan is still cheaper, on average, compared to the same standard accommodation offered on other islands.
-The rare opportunity to experience the old tropical way of a island paradise at Koh Phangan. Even the sworn lovers of Thailand will agree, that the days when the "paradise islands" were the place in which one can sit on a lonely beach and share his or her thoughts with a single coconut tree, are a thing of the past. Still, in Koh Phangan one can find some "reservations" of remote picturesque beaches with only a limited choice of accommodation, such as Haad Thong Reng, Haad Yao and Haad Sadet. Some of these forgotten venues feature about three dozens bungalows hidden in the midst of the jungle. These "old school" beaches make you fell like merging with a "real" paradise, created by true nature and not by wise and experienced tourism industry entrepreneurs.
-Breathtaking diving sites at Koh Phangan. The Gulf of Thailand is an excellent diving area, due to its clear water and the huge variety of underwater life. Until recently, the consensual opinion stated that the only place for "real" scuba divers in the Gulf of Thailand is Koh Tao Island, next to Koh Phangan. Nowadays, more and more divers are choosing Koh Phangan as a launching ground for their preferable diving sites: a small island Koh Ma, connected to Koh Phangan by a sand bar; the neighboring beaches Haad Salad, Haad Yao & Haad Chaophao, offering a hugevariety of tropical fish and coral reefs; and Ang Thong National Marine Park - a group of 42 islands, protected as a National Park.
-The Full Moon Party at Koh Phangan is held since 1989, the party attracts thousands of travelers every month coming from all corners of the globe. Even if you are not the classic partygoer - the full moon party could be a unique and unforgettable opportunity to join thousands of joyful, exhilarated people dancing together in the most beautiful place in the world to the sounds of the best music.


-To experience radically unique travel activities, Koh Phangan is quite a small sized island (about 170 km2), but it offers a widest variety of activities. You can come on a Sunday, as a backpacker to Sunrise Beach, become a professional diver on Monday in Koh Ma and turn into a seasoned partygoer on Tuesday as you take part in the exhilarating full moon party. If you're able to wake up on Wednesday morning, you can meet local people in the fishermen's village Chaloklum learn and experience their traditional way of life. Additionally, you can join forces with your sportsperson alter ego and go trekking on Thursday; and on Friday you'll have the unique opportunity to pretend being a Mowgli riding an elephant's back in Phangan Safari. On Saturday, you can try living as a sheikh in a luxury resort with a spa...and maybe get the chance to write a novel on the seven most unforgettable days of your life.
About the Author - Independent researcher, MA in anthropology, and travel enthusiast Ella Evans has spend more than a decade exploring Thailand focusing on the Southern Islands. The fruits of her labor can be found in the Koh Phangan Experience


Wednesday, December 29, 2010

Legal


Tips for starting a new business
Are you planning to start you own business for the first time in Thailand?  If so, we hope this useful information will help you put your own business on the right track.
The simplest and easiest sort of company for foreigners to form with a small business is a Thai Limited Company. In Thailand, a Limited Company is company with up to 100 shareholders, who share the same business purpose and is formed with a Capital divided into equal shares.

Getting Started
To set up a company, you must first have the memorandum that can be acquired at the registration office. To properly register, you are required to provide the authorites with details of your company and list a minimum of three shareholders ( who can either be Thai or foreign natioonals or both ). At least seven days after you first approach the department, you can call a shareholder's meeting to reach an agreement on the purpose of your business and set up the company's oporational rules.

Shares
Besides the issues of business registration, you must also make sure that your company's shares are worth no less than 5 bath each. These shares can be transferred or even sold if the company has no regulations on this matter.
Every shareholder must be given a share certificate, a document that guarantees their status as a shareholder. SHould anyone wish to transfer their shares to another party; they have to fill in the share transfer form that confirms the deal between the transferor and transferee.

THe company also has to have in its possession a  register of shareholders that contains a record of all the company's shareholders. The book is evidence that will indentify the company's shareholders.



Shareholders and Chairperson
A Limited Company's shareholders can be either Thai or foreign nationals or both, but the percentage of shares held by foreign national plays a significant role in determining the nationality of your company, which may impose serious limitations on the company's rights such as landownership.
If less than 49% of your company's shares are held by foreigners, your company is considered a Thai company. However, if foreign nationals hold more than 49% of the shares, your company is a foreign company.

The significant differences between Thai and foreign companies operating in Thailand lie in their rights to buy and own properties or other businesses. It is therefore important, especially  for those in real estate and development businesses, to know and remember that unless your company is Thai, you are restricted in the ability to possess and obtain land and property in this country without an exemption granted by the government.

Foreign companies are also restricted to certain activities and to proceed with certain operations the company will have to apply for permission from the government. In such instances, applications will be considered case by case. THey will also face tough scrutiny and strict restrictions on their right to operate and ability to run their business. These companies will be treated in the same way as foreign nationals seeking jobs in Thailand.

If you are registered as Thai company, you are automatically granted the right to purchase and own properties and other business and will be treated the same way as a Thai citizen. However, according to new legistation that has recently come into effect, the Land Department's staff are now required to thoroughly investigate your Thai shareholders's sources of income. Thai shareholders in a company wishing to purchase properties in Thailand have to declear their income and provide the authorities with evidence that proves their ability to co-invest with other foreign shareholders in the same company. Only those successful in convincing the authorities are granted the right to purchase and possess land.
Companies with approval from the Land Department can then proceed with their applications for land title deeds or other certificates of use and possession.

Little Things that matter.
A company limited has to have its own board of directors to act on behalf of the company.
This panel will, however, act under the regulations and agreements approved by the shareholders. Appointing directors or removing any of them requires shareholders approval.

At the end of the company's financial year,within five months, it shall be the duty of the company to present the balance sheet, the company will be fined up to 50,000 baht and the company board of directors may also be fined up to 50,000 bath.  If the committee refuses to pay the fine, the police can appeal to the court for a warrant and file a lawsuite against the resilient parties. Withdrawal of the company's business registration is also another penalty the company may face, should they not to provider the authorities with the necessary statement.

Information courtesy of Khun Surin Puangpakdee

Land Title Deeds in Thailand


There are two main types of land ownership in Thailand which we should explain


Rights of Possession
Firstly there is the right of possession, for example, land that has been used by a family for generations of the land and they have possesion rights of the land under the civil and commercial code. Such titles are Sor Kor 1, Tor Bor 5,6 or Sor Por Gor 4. These titles basically are only family possession rights and generally only used for farming. These titles can not be bought or sold and no building rights or legal acts would be allowed on the land. I do know of cases where families being in possessionof certain pieces of land for generations have been able to upgrade them to regular land title deeds but this is not generally the case and any serious investor would not normally give any credibility to these titles of possession.


Rights of Ownership
Usually we are looking for land title deeds giving right of ownership not possession. Here there are basically three title deeds;- Chanote, Nor Sor 3 and Nor Sor 3 Gor. The most sought after titles are the Chanote and the NOr Sor 3 Gor as both these titles have legal documents of rights of ownership and can be sub-divided into smaller plots and planing permission and any such legal acts can be carried out immediately on the land. The only difference with the Nor Sor 3 is that although legal documents are issued for the land it has not been accurately surveyed which can lead to problems in verifying actual land area. And if any legal act is to take place on this land it must be published for at least 30 days.


As we have been saying all the way through if it is not clear 100%, seek the advice of a legal professional in this field, as there are also many other issues that are important to consider such as servitude , access and rights of way.


Land Measurement & Survey


Land in Thailand is measured in Rai, Ngan and Talang Wah.
> 1 Wah = 4 sq.m.
> 1 Ngan = 100 Wah or 400 sqm. > 4 Ngan = 1 Rai or 1600 sqm.


In comparison to Western Standards:-
> 2.50 Rai = 1 Acre
> 6.25 Rai = 1 Hectare