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Hire of Immovable Property for Commerce and Industry
by Alien
In general, an alien may hire land in Thailand as
provided by the Civil and Commercial Code and the
contract of hire cannot exceed thirty years thereof.
Once the contract comes to an end, it can be renewed,
but it must not exceed thirty years from the date
of renewal.
Later and according to the Government policy focusing
on boosting industrial and commercial investment,
the Hire of Immovable Property for Commerce and Industry
Act B.E. 2542 was enacted and subsequently put into
force on May 19th, 1999. The Act aims at
providing specific rules and conditions in respect
of the hire of immovable property for commercial and
industrial purposes whereby an alien can choose either
from hiring land not exceeding one hundred rai or
more than one hundred rai. Provided that the following
rules for hiring land not exceeding one hundred rai
must be satisfied:
1. The duration of a hire of immovable property
shall exceed thirty years but not exceed fifty years.
In this instance, the letter and the hirer may make
an agreement to renew the contract but it shall not
exceed fifty years from the day the agreement is made;
2. The contract of hire shall be made in writing
and registered by the competent official;
3. The letter shall have possession in such
immovable property;
4. The right of hire can be used as suretyship
for performance of obligation by mortgage;
5. The right and duties of hire are devolvable
upon the heir and the hirer can sublet or transfer
his right of hire to a third person unless otherwise
provided by the contract of hire;
6. Immovable property to be hire registered
by the competent official under this Act shall be
located in either area of the followings;
6.1 the area specified by the law on Town and
Country Planning as for commercial or industrial purpose,
6.2 the industrial estate zone provided by the
law on Industrial Estate of Thailand,
7. A commerce or industry applied for a registration
of hire shall obtain, prior to the registration, either
of the following appearances;
7.1 Being a commerce with an investment cost
not less than Baht twenty million;
7.2 Being an industry that is eligible to be
granted a certificate of investment promotion under
the law on Investment Promotion;
7.3 Being a commerce or industry which benefits
the economic and social of the country as declared
by the Minister of Ministry of Interior and endorsed
by the cabinet.
8. The type of commerce or industry whereby
an alien can apply for registration must be a commerce
or industry upon which an alien can make business
under the law on Business Operation of an Alien.
In the case of hiring the land more that one hundred
rai, besides the satisfaction of the aforementioned
rules, either of the following rules must also be
met:
1. The operation of such commerce or industry
shall add value to an exportation or support employment
in the country;
2. Such operation shall never be operated in
the Kingdom, unless otherwise inadequate;
3. Such operation shall incorporate state of
the art production process or technology development;
4. Being in high benefit to the country’s economic
and social as declared by the minister of Ministry
of Interior and endorsed by the cabinet;
5. In the case where an alien is a hirer, sub-hirer
or a transferee of the right of hire, an investment
in an operation of such commerce or industry shall
not be less than Baht one hundred million excluding
the cost of hire. Also, the total amount of money
invested shall be foreign exchange brought into the
Kingdom or withdrawn from the foreign currency deposit
account or withdrawn from the non-resident Baht account.
Legal Affairs Division
Department of Land
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