Define Owning a Boat - for Business in Thailand
A vessel refers to a boat, ship or yacht. Under the Thai Vessel Act B.E.2481 'vessel' is generally defined as 'any kind of water vehicle. Vessels in Thailand can be classified as either a Thai registered vessel or a foreign registered vessel. Under Thai maritime law a foreign vessel could be anything from tourism or pleasure boats to sport yachts but the importer must NOT use such vessel for commercial purpose in Thai waters, basically a foreign vessel must be a non-commercial boat.
"The purchase of a boat in Thailand is a big deal! The majority of boats cost a fortune and may last for decades."If a foreigner wishes to purchase a vessel and register it under Thai law with the purpose of engaging in businesses such as for a scuba diving school or to offer sailing trips to tourists, many considerations have to be taken into account.
The most common and well-known business vehicle used by foreigners to purchase a vessel for business is to form a Thai limited company. In order form a limited company to own a Thai vessel, several conditions must be satisfied: At least 50% of the company directors must be Thai nationals, there must be no company regulation permitting the issue of a bearer share certificate, no less than 70% of the share capital must be contributed by a person who is not deemed to be an alien, as defined by the Foreign Business Operation law. In addition a TAT tourist license must be applied for at the tourist authority of Thailand.
Import of a foreign boat
The Customs Department allows the import of a foreign boat on a temporary basis, generally for six months. The import is not considered a formal importation and taxes are not applied. Anyone who wishes to import a boat on temporary basis must execute a Guarantee Agreement with the Customs Department certifying that if an importer does not take the vessel out of Thailand within a specified period, he/she shall be fined at the amount depending on the size and quality of the boat. Commercial activities with a vessel imported on a temporary basis is not allowed.
Tags: Thailand Company Lawyer, buying a boat in Thailand
