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This year a number of new regulations and orders affecting Thailand companies with non-citizen shareholders and directors were passed. Immigration requirements for foreigners living in Thailand were also changed. The following is a summary of some of the most important Thailand legislation passed in 2006 affecting non-Thais residing in Thailand and Thailand companies with non-Thai shareholders.

The Royal Thai Police Headquarters Order Re: Rules and Conditions in the Consideration of Alien Applications for Temporary Stay in the Kingdom of Thailand stipulates new requirements for aliens obtaining permission to stay in Thailand. The Order introduces significant changes to the basis for consideration of alien applicants and required documentation.

In order to be granted a visa in the case of employment with a company or partnership, the applicant must receive a monthly income from the sponsoring company in the amount stipulated in the Order (50,000 baht for European Countries, Australia, Canada, Japan and USA; 45,000 baht for South Korea, Singapore, Taiwan and Hong Kong; 25,000 to 35,000 baht for other countries). Among other qualifications, the sponsoring company must have a registered capital of not less than 2 million baht, must have funds sufficient to pay the salary of the employee for one year and must have a ratio of at least one alien employ to four Thai permanent employees. Branch offices of International trade enterprises and Regional Offices are permitted a ratio of one alien for every two Thai nationals.

Applicants for investment visas must show proof of a money transfer into Thailand in an amount no less than 3 million baht and must show proof of investment.

Applicants for retiree visas must be over 50 years of age. Requirements for applicants of retiree visas include at least 800,000 baht deposited in a Thailand bank account and proof of income of not less than 65,000 baht per month. (The former regulations still apply for aliens who received a retirement visa under the former legislation.)

For aliens who entered Thailand before this Order came into force, the Commissioner of the Immigration Bureau shall consider and decide on the particular case based on the prevailing reasons and circumstances within 1 year from the effective date hereof.

Limit on 30 Day Tourist Visa (Royal Thai Police Headquarters Order No. 608/2549)

Recent changes to tourist visa status include the Royal Thai Police Order No. 608/2549. Although the language used has been considered difficult to interpret, the common interpretation is that within a six month period, passport holders from visa-on-entry countries will be permitted to enter the country several times on individual stays which do not exceed 30 days, or 90 days in total from the first time the passport holder arrived in Thailand.

New Registration Requirements for Companies with Foreign Shareholders or Director (Ministry of Commerce Regulation No. 102/2549)

All Thai shareholders in the following types of partnerships and limited companies are required to submit evidence of their source of capital when registering a new company: (1) Partnerships or limited companies in which foreign shareholders hold over 40% of the shares. (2) Partnerships or limited companies in which foreign shareholders hold less than 40% of the shares, but a foreigner is the director of the company or partnership. The following types of documents may be submitted by the Thai shareholders as evidence of the source of capital: (1) Copy of a bank book or bank statements retroactive for 6 months (2) A document issued a bank certifying the financial status of the shareholders (3) Copy of evidence showing the source of money for investment.

Real Estate Companies with Foreign Shareholders under Scrutiny (Ministry of Interior Circular Letter 15 May 2006)

According to a 15 May 2006 Ministry of Interior circular letter, companies with a significant foreign shareholding involved in the real estate business and real estate companies in which the use of Thai nominees is suspected may come under investigation when the company has the objective of engaging in the real property business.

700,000 Stateless People to Gain Access to Universal Health Care Scheme

The board of the National Health Security Office is said to have voted on 28 November 2006 to include 700,000 stateless people into the Universal Health Care Scheme.  The board must plan sources of funding for their new proposal before seeking approval from the Cabinet next month.

Special Development Zone to be Established in Deep South

According to government sources, the National Legislative Assembly voted on 24 November 2006 to approve the establishment of a special development zone in the Southern provinces of Pattani, Sala, Narathiwat, Songkhla and Satun in an effort to stimulate economic development.  The new plan proposes for the government to offer tax incentives for investment projects and improve the roads in the region.

Alcohol Control Bill to be Considered by Cabinet

 According to sources, the Public Health Ministry will bring the Alcohol Control Bill before the cabinet on 28 November 2006.  Media sources quote the Public Health Minister as stating that the Bill is designed to limit the 37 alcohol related casualties a day caused by drunk drivers by banning the advertisement of alcohol.  The new bill will also make the sale of alcohol to persons under 20 years of age and heavily intoxicated persons illegal.  The bill prescribes maximum prison terms and fines for persons acting in violation of the act.

Thailand Development Research Institute Conference Participants Call for Anti-Corruption Laws

Economists and social scientists participating in the two day Thailand Development Research Institute seminar have called on the Interim Government to introduce laws lessening corruption according to media sources in attendance at the conference on 12 December 2006.  Suggestions for legal reform include an early-warning system for fiscal policy, a clear plan about trade liberalization, law amendments establishing severe punishments for corrupt politicians and bureaucrats, policies mandating that government agencies disclose more information, a freedom of press law, and laws regulating the natural monopolies of some businesses.

New Law Designed to Protect Small Retailers

According to media sources, Finance Minister MR Pridiyathorn Devakula announced at a 15 December 2006 seminar at Mahidol University that a new law protecting small retailers will be enacted in the next few months.  Pridiyathorn stated that the law is intended to counter some of the negative consequences of the presence of giant retailers such as unequal income distribution, distortion of cultural values and destruction of communities that come with the presence of giant retailers. The new law would be designed to allow big and small retailers to coexist.

Employers Believe Migrant Workers Do Not Deserve the Same Rights as Thais According to Mahidol University Study

A study conducted by the Institute for Population and Social Research at Mahidol University published on 13 December 2006 revealed that the majority of Thai employers of migrant laborers do not believe they deserve the same rights as Thai citizens.  Over 60% of the employers believed that the workers should not be allowed to leave the work place.  8% of the 700 migrant workers interviewed in the study complained that their employers locked them up at night.

International Transportation Business Ministerial Regulation

The 2549 International Transportation Business Ministerial Regulation issued on 28 September 2006 repeals Ministerial Regulation No. 29/ 2530 and establishes new licensing requirements for international transportation businesses.  According to government sources the regulation was issued in order to allow Thailand international transportation businesses to compete more freely in the world market.  In the case that the international transportation businesses' head office is abroad, a branch office or registered representative office must be established in Thailand under Thailand law. 

Lottery Bill under Consideration

The National Legislative Assembly (NLA) is scheduled to consider a bill legitimizing two and three digit lotteries on 29 November 2006.  According to press reports quoting NLA members, the lottery act has triggered fierce division in the NLA among party lines.

New Insurance Law to Provide Greater Protection to Policy Holders

According to a 28 November 2006 press report, a Commerce Ministry committee has been established to draft an amendment to the Life and Non-Life Insurance Law.  The amendment, scheduled to be submitted to the Cabinet and the National Legislative Assembly early next year, aims at protecting policy holders in case insurers are forced to close down by establishing a into which fund insurers are required to pay.

Bill Punishing Computer Hackers and Internet Pornography Distributors Introduced

The National Legislative Assembly is said to have debated a draft bill in their 16 November 2006 session aiming to punish computer hackers and those who publish pornography on the internet.  Opponents of the bill claim that the draft gives too much power to state investigators and may infringe on civil rights and freedom of expression.

Domestic-Violence Victim Protection Bill to be Introduced

According to government sources, Social Development and Human Security Minister Paiboon Wattanasiritham announced on 23 November 2006 that his ministry would put the Domestic-Violence Victim Protection Bill before the Cabinet within two weeks.  Paiboon is said to have estimated that domestic violence exists in 18 million families in Thailand.  The proposed bill aims for the rehabilitation of domestic violence perpetrators rather than focusing on punishment.

Thai Activists Call on Agriculture Department to Object to US Papaya Patent

Members of BioThai, a nonprofit group that works to protect farmers' rights and biodiversity, have asked the Agriculture Department to object to the patent awarded to Cornell Research Foundation by the US Patent and Trademark Office over its "invention" of GM papaya developed from two native papaya plants, khaek dam and khaek nual.  Experts state that the patent would give exclusive rights of the GM papaya to the patent holders only in the US.  However, Thai farmers could not export the papaya to the US or other countries where the patent was recognized.