Phuket Post :: Article :: How to set up an "Association" in Thailand

Phuketians and residents often hear of various clubs, associations or organisations that deal with a particular aspect of community or society, and there are some prominent associations in Thailand.

Those that wish to formalise an association and legally register one will have to apply thought to the actual application process, time, and requirements of the authorities before proceeding to a stage where there are monies circulating around the organisation, which may be subject to tax and regulated accounting procedures.

This article is by its very nature procedural, but the main issue to bear in mind is that foreigners involved in association applications will come under scrutiny by the authorities � namely Thailand�s National Criminal Intelligence Agency, which will undertake background checks on the aplicants.

Apparently, the applicant may speed up the check by producing background reports from his or her home country, but the acceleration is not guaranteed. The senior officers involved in this process have the authority to request additional documents.

The rule for setting up the �Association�

There must be at least three Promoters of the Association and there must be at least ten Members of the Association.

Procedure for setting up the �Association�

1. Convene a meeting to set up the �Association� and record minutes at the meeting. The minutes must appoint a Director(s) of the Association.

2. File an application to set up the �Association� at the District Office where the Association will be located within 30 days from the meeting in section 1.

Documents needed to make the application

A formal application form to set up the �Association� must be filed.

All promoters of the Association must sign this form. Note there cannot be less than three promoters of an Association. The Sor. Kor.1 form is available from the District Office.

Currently and technically, all Directors can be foreigners.

Minutes of the Meeting in Section 1.

Regulations of the Association.

The Regulations must include the following sections:

Section 1: Name, Logo and Location of Association
Section 2: Subject
Section 3: Capital and Assets
Section 4: Qualifications and Term of the Directors
Section 5: Management System of the Directors
Section 6: Authority and Duty of the Directors
Section 7: Membership of the Association
Section 8: Association Directors Meeting
Section 9: Financial Matters of the Association
Section 10: Amendment of Regulations
Section 11: Termination or end of term of the Association

Note: Anything more required can be included in the above list

Name, address and occupation of the Members of the Association

Name, address and occupation of the Directors of the Association

Copy of ID card or passport of the Directors and Members of the Association

Copy of Household registration of the Directors and Members of the Association

Location map of the Association

Letter of approval of the owner of the building that the Association
will use as its office. This letter is relevant only if the Association
does not own the office. If the offices are leased, a copy of
the lease agreement and a copy of title deed of the leased office also need to be filed.

Memorandum of the person who will be a Director of the Association
showing e.g., salary, occupation

In practice the Directors of the Association will make the memorandum at the District Office using a prescribed form, and the form can be filled in and filed when the application is filed for setting up the Association.

In case a foreigner is a Director of the Association, the director needs a letter from their embassy stating they have no criminal record or background.

Fee

A fee of 2,000 baht is payable upon receiving approval from the District Office to set up the Association. Despite the fact that such a process appears to be straightforward, it could take up to twelve months to reach completion.

It is therefore worthwhile having the association appoint a lawyer or professional within the members who intend to form the association to deal with the processing of the application and forms.

Desmond Hughes is a partner in Belmont Limcharoen.
desmond@belmontlimcharoen.com www.belmontlimcharoen.com