Tag: Consumer Protection

on by

First-Baht Import Duty Collection under the Quick Big Win Initiative: Towards a Fair and Sustainable E-Commerce Market

On 25 December 2024, the Ministry of Finance issued a temporary measure exempting import duties on consignments valued at no more than THB 1,500 per item purchased through foreign-operated e-commerce platforms, subject to the declaration of the “LVG” code on the commercial invoice. This exemption remained in effect from 1 January 2025 to 31 December 2025.

Subsequently, in accordance with the government’s Quick Big Win policy, the Customs Department implemented the collection of import duties on all online purchases from the first baht, effective 1 January 2026. This measure applies to both domestic and international e-commerce platforms. The authorities continue to coordinate with platform operators to ensure compliance and prevent the distribution of unlicensed or substandard goods.

Quick Big Win Policy of the Customs Department

The Quick Big Win policy of the Customs Department comprises three principal pillars:

  • Trade Enabler – Enhancing trade facilitation by revising customs regulations and procedures that constitute barriers to import and export operations, improving logistics efficiency, and permitting Inland Container Depots (ICDs) to conduct customs clearance for export goods directly.
  • Social Protector – Safeguarding society against unlawful products through the execution of Memoranda of Understanding (MOUs) with online platforms to regulate and prevent the distribution of illegal goods.
  • Revenue Collector – Ensuring equitable revenue collection with a target exceeding THB 600 billion, encompassing import duties, value-added tax (VAT), excise tax, and interior-related taxes.

New Measures: Collection from the First Baht

On 5 November 2025, the Director-General of the Customs Department announced that import duties would be collected on all goods purchased through online platforms from the first baht. This measure took effect on 1 January 2026, in alignment with the government’s Quick Big Win policy.

The measure applies to transactions conducted via major domestic e-commerce platforms, such as Shopee and Lazada, as well as international platforms, including TikTok, eBay, Amazon, and Alibaba. The Customs Department continues to coordinate closely with these platforms to ensure full compliance with applicable laws and to prevent the importation and distribution of unlicensed or substandard products that fail to meet national safety and quality standards.

Stakeholders Affected by the New Measure

  1. Domestic Businesses – Local sellers benefit from a fairer competitive environment, as foreign sellers lose the cost advantage previously derived from import duty exemptions. While competition may intensify, pricing dynamics become more balanced.
  2. Consumers – Imported goods may incur slightly higher costs; however, consumers benefit from enhanced product safety, improved quality assurance, and greater transparency, resulting from stricter controls on unauthorised or substandard items.
  3. E-Commerce Platforms – Both domestic and international platforms (including Shopee, Lazada, TikTok, and Amazon) must ensure compliance with customs regulations, accurately report transactions, and prevent the sale of non-compliant products.

Conclusion

The transition from the low-value import duty exemption to a comprehensive duty collection framework strengthens fair competition by reducing the cost advantages previously enjoyed by overseas sellers. While certain imported goods may experience modest price increases, consumers benefit from improved safety standards, quality assurance, and pricing transparency. Concurrently, domestic businesses gain access to a more equitable competitive environment.

This measure also supports government revenue collection through duties, VAT, and excise taxes, aligning with Thailand’s Quick Big Win policy objectives. By balancing trade facilitation, consumer protection, and fiscal sustainability, the initiative fosters a more equitable and sustainable import and e-commerce market.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Customs Duty: Duty Exemption Procedures under the Amended AANZFTA

The Second Protocol to Amend the ASEAN–Australia–New Zealand Free Trade Area (AANZFTA) modernizes the original agreement to align with contemporary trade practices. This amended agreement entered into force for Thailand and eight other Parties—Australia, New Zealand, Singapore, Brunei Darussalam, Malaysia, Lao People’s Democratic Republic, and the Socialist Republic of Viet Nam—on October 1, 2025, and for the Republic of the Union of Myanmar on October 12, 2025.

To fulfill Thailand’s obligations under the amended AANZFTA, the Customs Department of Thailand issued Notification No. 149/2568, titled “Criteria and Customs Procedures for Exemption and Reduction of Customs Duties under the ASEAN–Australia–New Zealand Free Trade Area (No. 3)” (“Notification”). This Notification aims to enhance trade facilitation, promote transparency, and ensure adherence to international trade commitments.

Criteria for Duty Exemption or Reduction:                                                        

To qualify for customs duty exemptions or reductions under the amended AANZFTA, goods must satisfy the following conditions:

  1. Origin Requirement: Goods must originate from an ASEAN member country (limited to participating Parties), Australia, or New Zealand, as defined by the AANZFTA Rules of Origin.
  2. Proof of Origin: Importers must provide either:
  3. A Certificate of Origin (Form AANZ) issued by a competent authority; or
  4. An Origin Declaration issued by an approved exporter.
  5. Low-Value Imports: Goods with an FOB or CIF value not exceeding USD 200 per shipment are eligible for duty benefits without requiring a Certificate of Origin (Form AANZ) or an Origin Declaration.

Benefits of the Notification:

The Notification offers several advantages for businesses trading with AANZFTA member countries, including:

  1. Cost Reduction and Competitiveness: Tariff reductions lower import costs, enabling businesses to offer competitive pricing and improve profitability.
  2. Efficient Customs Processes: Standardized documentation and clear procedures expedite customs clearance and reduce border delays.
  3. Support for Small and Medium Enterprises (SMEs): Simplified requirements for low-value imports (FOB/CIF ≤ USD 200) allow SMEs to access preferential rates without formal documentation.
  4. Improved Trade Compliance: Uniform procedures facilitate adherence to international trade regulations, enhancing compliance and transparency.

Examples of Eligible Goods:

Goods qualifying for full or partial duty exemptions under the amended AANZFTA include:

•  Electronic Equipment: Blenders, washing machines, and air conditioners.

•  Food and Beverage Products: Eggs and truffles.

•  Other Goods: Golf balls, tables, and fountain pens.

Conclusion:

The Notification provides comprehensive guidance on the criteria and procedures for customs duty exemptions under the amended AANZFTA. Eligible goods meeting origin requirements and supported by appropriate documentation benefit from full or partial duty exemptions, reducing costs, streamlining customs processes, and supporting SMEs. By establishing transparent and standardized procedures, the Notification strengthens Thailand’s commitment to facilitating international trade while ensuring compliance with AANZFTA obligations.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Thailand Streamlines Origin Certification Procedures for Exporters Under New DFT Notification

Pursuant to the mandate of the Ministry of Commerce, the Department of Foreign Trade (DFT) has been designated as the sole authority responsible for issuing Certificates of Origin (C/O) for goods exported from Thailand. The DFT recently issued the Notification on the Registration of Authorized Exporters for Self-Certification of Rules of Origin under International Trade Agreements or International Trade Practices B.E. 2568 (2025) (the “Notification”), which took effect on 1 October 2025.

This Notification establishes the criteria, procedures, and conditions for exporters to register and obtain authorization to perform self-certification of origin, enabling them to issue their own origin declarations to claim preferential tariff treatment or other benefits under international trade agreements.

Purpose of the Notification

The Notification enables exporters to certify the origin of their goods under regional trade agreements more efficiently, without relying exclusively on government-issued certificates of origin. The initiative is designed to:

  • Facilitate international trade;
  • Reduce administrative burdens; and
  • Expand exporters’ access to preferential tariff treatment under applicable trade frameworks.

A Streamlined Digital Process

Under this Notification, registration is conducted through an enhanced digital system, which:

  • Improves operational efficiency and transparency;
  • Supports digital compliance monitoring by the DFT; and
  • Enables faster access to preferential customs benefits, significantly reducing processing times.

This development provides qualified exporters with greater procedural efficiency, expedited access to tariff preferences, and reinforces Thailand’s commitment to regulatory harmonization in response to increasing global scrutiny of origin compliance.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Logistics: Transforming Bangkok’s West Port into a SMART PORT

The Port Authority of Thailand (PAT) is revolutionizing Bangkok’s West Port in Khlong Toei by developing it into a SMART PORT. This initiative integrates advanced technologies and semi-automated systems to boost operational efficiency, minimize energy use, and prioritize environmental sustainability, aligning with global trade demands where over 90% of commerce relies on maritime transport.

Advanced Infrastructure for Enhanced Efficiency

The West Port transformation includes the deployment of two types of semi-automated equipment:

  • Automated Rail Mounted Gantry Cranes (ARMG) for streamlined container handling.
  • Automated Ship-to-Shore Cranes (STS) to facilitate efficient cargo transfer.

The project encompasses a 634-meter-long berth with a quay area of approximately 29,100 square meters (18.19 rai). The hinterland will expand to 176,023 square meters (110 rai), optimizing container handling capacity. These upgrades aim to modernize services to international standards, increase container throughput, and enhance customer satisfaction, with Phase 1 operations slated for 2030.

Commitment to Sustainability and Community Engagement

PAT is dedicated to balancing economic growth with environmental stewardship. A comprehensive Environmental and Health Impact Assessment (EHIA) has been conducted, focusing on four key areas:

  1. Physical Environment: Analysis of topography, soil, geology, climate, air quality, noise, vibration, and water resources.
  2. Biological Environment: Evaluation of terrestrial and aquatic biodiversity.
  3. Environmental Management: Assessment of land use, transportation, water and wastewater management, flood control, electricity consumption, and waste management.
  4. Quality of Life: Consideration of socio-economic impacts, public health, occupational safety, tourism, visual aesthetics, and cultural heritage.

To ensure transparency, PAT hosted a stakeholder forum, gathering input from government agencies, environmental organizations, NGOs, academics, local residents, and community leaders. This collaborative approach addresses public concerns and integrates community feedback to foster sustainable development and build trust.

Long-Term Vision: A Smart Community

The master plan for Khlong Toei Port, spanning 2,353 rai, has been under review since 2019. It envisions a mixed-use “Smart Community” with high-rise residential units, modern amenities, and a transport hub. This holistic development aims to integrate the port’s advancements with the needs of surrounding communities, creating a sustainable and interconnected urban ecosystem.

stacked shipping containers against blue sky

Key Takeaways

Long-Term Impact: The initiative supports Thailand’s economic growth while fostering a modern, sustainable “Smart Community” by 2030.

SMART PORT Transformation: Bangkok’s West Port is being upgraded with semi-automated cranes and advanced technologies to enhance efficiency and align with global trade standards.

Sustainability Focus: The project prioritizes environmental protection through comprehensive EHIA studies and sustainable practices.

Community-Centric Approach: Stakeholder engagement ensures transparency and incorporates public feedback for balanced development.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

New Labeling Requirements for Vehicles – Ensuring Transparency and Informed Choices for Consumers

Introduction

In a significant step toward enhancing consumer safeguards, the Office of the Consumer Protection Board (OCPB), Thailand’s primary authority on consumer rights, has designated a range of vehicles as “controlled labeling products.” This regulatory update, effective from 2023, mandates comprehensive and standardized labeling to promote transparency, mitigate transaction disputes, and empower consumers with essential information. The initiative underscores OCPB’s commitment to fostering fair market practices, particularly in the rapidly evolving automotive sector, including electric vehicles.

Background and Purpose

The decision follows an extensive review process initiated in 2023, encompassing detailed analyses of benefits, drawbacks, and impacts on both consumers and businesses. Public consultations with stakeholders ensured a balanced approach. As articulated by OCPB, the primary objectives are to protect consumer rights, standardize buying and selling processes, and cultivate market transparency. Vehicles involved in complex sales—such as automobiles, electric cars, motorcycles, electric motorcycles, and electric bicycles—often lead to misunderstandings if critical details are omitted. By enforcing clear labeling, OCPB aims to equip buyers with the tools for informed decisions, thereby reducing risks and bolstering confidence in the industry. This aligns with broader goals of equitable economic growth and sustainable consumption practices.

Key Labeling Requirements

Under the new guidelines, manufacturers and sellers must affix labels that clearly and comprehensively disclose vital product details. The required elements include:

•  Model Designation: The specific model name or identifier of the vehicle.

•  Manufacturing Date: Month and year of production.

•  Warranty Conditions: Detailed terms, including duration and coverage scope.

•  Battery Type (for electric models): Specifications of the battery, such as chemistry and capacity, to address safety and performance concerns.

These labels must be prominently displayed, using legible fonts and formats that ensure accessibility. Non-compliance may result in penalties, emphasizing the obligation for businesses to adhere strictly to the regulations. While the announcement focuses on vehicles, OCPB’s broader controlled labeling framework—applicable to various goods—typically requires additional universal elements, such as the product type, brand or trademark, manufacturer’s address, usage instructions (in fonts no smaller than 2 millimeters), warnings (in fonts no smaller than 5 millimeters where applicable), and production or expiration dates. For vehicles, these are integrated to provide a holistic view, preventing hazards and ensuring product integrity.

Implications for Businesses and Consumers

For manufacturers and retailers, this mandates proactive label design and production, potentially involving specialized printing services to meet precision standards. Compliant labeling not only avoids legal repercussions but also enhances brand reputation by signaling reliability. Consumers, in turn, benefit from reduced information asymmetry, enabling comparisons across models and averting post-purchase regrets.

Conclusion

The OCPB’s vehicle labeling mandate represents a forward-thinking regulatory evolution, harmonizing consumer protection with industry innovation. By prioritizing clarity and completeness in disclosures, it paves the way for trustworthy transactions and sustainable mobility solutions. Businesses are advised to consult OCPB guidelines promptly, while consumers should leverage available resources to exercise their rights vigilantly. This framework not only safeguards individual interests but also contributes to Thailand’s vision of a transparent  consumer-centric economy.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Department of Intellectual Property’s Ongoing Efforts to Tackle Intellectual Property Infringements

Introduction

Thailand’s status on the United States Trade Representative’s (USTR) Watch List has prompted the Department of Intellectual Property (DIP) to take significant measures to minimize intellectual property (IP) infringements in the country. While recognizing Thailand’s progress in enhancing IP protection and enforcement, the DIP has implemented various initiatives throughout 2023. This article highlights the key actions undertaken by the DIP, including educational campaigns, collaboration with e-commerce platforms, and enforcement efforts.

Educating and Raising Awareness

In an effort to promote understanding and awareness of IP protections, the DIP has organized a series of seminars and conferences targeted at different stakeholders. These events catered to small and medium-sized businesses, lawyers, intellectual property owners, and the general public. Topics covered during these engagements encompassed a wide range of subjects, such as “Seminars on Promoting Locals and Community Products with IP, Creating Sustainable Trade Opportunities,” “How to manage IP, to allow Thai Inventions and Innovations into the Global Market,” and “Digital Transformation and IP.” Additionally, the DIP developed straightforward guidelines, concise articles, and visually appealing graphics to engage teenagers and encourage learning about IP protections. These educational materials were disseminated through various platforms, including popular social media platforms like Facebook, Instagram, and TikTok.

Coordination with E-Commerce Platforms

In an effort to combat piracy and strengthen IP protection, the DIP has collaborated with prominent e-commerce platforms, namely Lazada, Shopee, and TikTok Shop. Through these partnerships, the DIP has established direct channels for reporting IP infringements while actively removing thousands of copyright-infringing items from these platforms. This collaboration has proven instrumental in curbing IP violations and safeguarding the rights of content creators.

black android smartphone on top of white book

Enforcement Actions

To address the pressing issue of IP infringement, the DIP, in collaboration with the International Security Operations Command (ISOC), formed a “Working Group to Suppress IP Violations.” This dedicated task force has demonstrated its commitment to tackling IP infringement cases in Thailand. In the year 2022, the Working Group successfully arrested and prosecuted over 5,827 individuals involved in IP infringement, resulting in the seizure of 2,308,176 infringing items. These actions amounted to a total damage value of 1,058,201,923 THB. Although the statistical report for 2023 is not yet available, as of August 2023, the DIP reported the seizure of over 1,253,529 infringing items, with a total damage value of 605,813,800 THB.

Conclusion

The Department of Intellectual Property’s unwavering commitment to minimizing intellectual property infringements in Thailand is evident through its multifaceted approach. By actively engaging the public through educational campaigns, collaborating with e-commerce platforms, and enforcing stringent measures, the DIP strives to create a culture of respect for intellectual property rights. These proactive measures not only enhance public understanding of IP but also serve as a deterrent for future infringements, fostering an environment conducive to the growth and development of innovation in Thailand.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Streamlining Processes: Electronic Submission for Bonded Warehouses, Free Zones, and Free Zone Operations

Introduction: This article discusses the implementation of electronic means for the submission of applications related to bonded warehouses, free zones, and free zone operations. This initiative aims to expedite and streamline the process, adhering to the authority granted by Sections 112, 136, and 146 of the Customs Act B.E. 2560 (2017). The Customs Department drafts the notification outlining the procedures and requirements for electronic submission, ensuring the correctness and completeness of applications and supporting documents.

Application and Documentation Submission: To establish bonded warehouses, apply for operational licenses, and notify changes in information related to customs-free zones, the following guidelines must be adhered to:

  • Electronic Submission: All requests for permission and notifications must be processed electronically, in accordance with the criteria, methods, and conditions specified in the proclamation.
  • Required Documents: Applications and supporting documents must be provided in PDF format, with a resolution of no less than 300 DPI.

Electronic Application Submission: To facilitate a seamless electronic submission process, the following steps must be followed:

  • Registration: Applicants must register at the National Single Window System using a digital signature certified by a certification authority.
  • Submission Procedure: Applications and documents should be submitted through the “System for Receiving Applications and Issuing Licenses for Secure Warehouses, Ports, Bonded Warehouses, and Customs-Free Zones,” following the prescribed procedures and usage guidelines.
  • Fee Payment: Applicants are required to pay the necessary fees as per the law and provide proof of payment along with the application and supporting documents.

Application Review: The Customs Department will meticulously review all submitted applications and documents to ensure correctness and completeness, in line with the criteria and conditions specified in the proclamation.Conclusion: The implementation of electronic submission for applications related to bonded warehouses, free zones, and free zone operations is a significant step toward streamlining and expediting the process. By embracing the digital platform, the Customs Department aims to enhance efficiency and accuracy while ensuring compliance with relevant regulations. This initiative is expected to bring about a more seamless and user-friendly experience for individuals and businesses involved in these operations within customs-free zones.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Strengthening Consumer Rights: An In-depth Look at the Defective Products Bill

Introduction:

The Defective Products Bill emerges as a crucial legislative initiative in the ever-changing landscape of consumerism. This Defective Products Bill aims to fortify the rights of consumers who face the risk of purchasing defective products. By extending the protection provided by the existing framework outlined in the Civil and Commercial Code, the bill seeks to ensure that buyers are shielded beyond the point of product delivery. Through its focus on sales contracts, liability, and consumer remedies, the Defective Products Bill promises comprehensive protection against the pitfalls of defective goods.

Acknowledging Consumer Vulnerabilities:

The Defective Products Bill is grounded in the recognition of the inherent vulnerabilities faced by consumers in the marketplace. Currently, the Civil and Commercial Code protects buyers only until the moment of product delivery, shifting the burden of proof regarding defects to the buyer afterward. This proposed bill aims to rectify this imbalance by extending the seller’s liability to a period of six months post-purchase. This temporal extension acknowledges the possibility of latent defects that may surface over time and places a significant responsibility on sellers to ensure the enduring quality of their products.

Empowering Buyers:

One of the pivotal aspects of the Defective Products Bill is the empowerment it bestows upon buyers in terms of their rights and options. In the event of a defective product, buyers gain the authority to demand redress through various channels. These options include requesting the seller to repair the product, seeking a replacement, negotiating a discount, or even terminating the contract entirely. This multi-faceted approach caters to the diverse needs and expectations of consumers, ensuring that they are not unduly burdened by the consequences of a defective purchase.

happy woman shopping online at home

Recognizing Consequential Damages:

The Defective Products Bill goes beyond the immediate realm of product exchange and considers the broader impact of defects on consumers’ lives. By entitling buyers to demand compensation for any consequential damages resulting from a defective product, the Defective Products Bill recognizes the ripple effect that substandard goods can have on various aspects of a consumer’s life. This encompassing approach ensures that the legislation is not solely concerned with the physical product but also with the overall well-being of the consumers.

Balancing Interests:

In addition to the rights afforded to buyers, the Defective Products Bill introduces a mechanism for sellers to protect their interests. In the event of a contract termination initiated by the buyers, the Defective Products Bill allows sellers to demand depreciation costs. This provision strikes a balance between consumer protection and the need for sellers to mitigate potential financial losses, fostering a fair and equitable resolution to defective product disputes.

Tailored Approach for Different Products:

The Defective Products Bill exhibits a nuanced understanding of the diverse nature of products by delineating specific procedures for different product categories. For example, it outlines distinct processes for handling defects in motor vehicles and electronics, recognizing the unique challenges posed by each product type. This specificity enhances the bill’s practicality and underscores its commitment to addressing the intricacies of modern consumer markets.

woman wearing black sweater holding fleece cloth

Current stage of the legislation:

The legislation is currently undergoing public hearings, marking a pivotal stage before it advances to the cabinet’s review. During this phase, the Bill is subject to potential amendments to better align with the needs and values of Thai society. Upon approval by the cabinet, the Bill will then proceed to the Parliament for further consideration and final approval.

Conclusion:

The Defective Products Bill represents a commendable stride toward fortifying consumer rights in the face of potential product defects. By extending the sellers’ liability, empowering buyers with a range of options, and considering the broader ramifications of defective products, the Defective Products Bill establishes a robust framework for safeguarding consumers in an evolving marketplace. Striking a delicate balance between buyer protection and seller interests, this legislation heralds a new era of accountability and fairness in the realm of consumer transactions.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Tax Exempted to Increase the Use of Electric Cars and Electric Motorcycles

The Ministry of Finance has proposed the draft decree in accordance with the Revenue Code regarding Corporate Income Tax Exemption for Subsidies under Measures to Support the Use of Electric Cars and Electric Motorcycles. The motive of this draft decree originated from the cabinet resolutions regarding the measures for increasing the use of electric cars and electric motorcycles by subsidy to the domestic automotive industry operators who manufacture and assemble automobiles and battery electric vehicles (BEV) including pickups and motorcycles. The draft aim to provide incentives for those who are subsidized by exempting corporate income tax to reduce the cost of BEVs, resulting in higher demand and more trust from investors, leading to an increase in electric cars and motorcycles, hiring, and labor skills.

white car charging

Before proposing this draft decree, the Ministry of Finance has released two announcements of the Excise Department as follows:

  1. The announcement regarding terms, conditions, and methods to exercise rights and measures to support the use of electric cars and electric motorcycles; The operators must meet the qualifications such as having the manufacturer located in the freezone, free-trade zone, or being the officially appointed distributors, etc.
  2. The announcement regarding the terms and conditions for subsidy as follows:
    • The government will provide a subsidy of 70,000 baht for cars with a retail price of fewer than 2 million bath and battery size of 10 kWh to less than 30 kWh and subsidy of 150,000 baht for cars with a battery size of 30 kWh or more. In exchange to the subsidy for compensation of imports of Completely Built-Up (CBU) electric battery car, industrial operators obtaining such subsidy are required to build any car models by 2024.
    • The government will provide a subsidy of 150,000 baht for BEV pickup trucks with a battery size of 30 kWh or more.
    • The government will provide a subsidy of 18,000 for motorcycles with a retail price of less than 150,000 bath. That must be domestically produced, completely knock down (CKD) and completely built-up (CBU). In exchange to the subsidy for compensation of imports of completely built-up (CBU) electric battery motorcycles, industrial operators obtaining such subsidy are required to build any motorcycle models by 2024.
black car in a garage

According to the subsidy above, the Ministry of Finance then proposed this draft decree to exempt tax from the income that limited company and limited partnership receive from the subsidy. It is an exempt income tax that must not be included in the calculation of net profit for corporate income tax purposes. However, such limited company and limited partnership must comply with Excise Department’s rules, otherwise the income from such subsidy must be included in tax’s calculation.

The draft decree will be effective from the date of publication in the Official Gazette onwards.

Author: Ms. Panisa Suwanmatajarn, Managing Director.

on by

Changes in Corporate Law: Easier to Operate Businesses in Thailand

The Amendment to the Civil and Commercial Code Act (No. 23), B.E. 2565 (2022) (“CCC Amendment Act“), came into force on February 7th, 2566 (2023). It amended various sections of the Partnerships and Companies Title of the Civil and Commercial Code in order to reduce the difficulty to operate a business, be up-to-date, and increase the country’s competitiveness. Significant amendments are such as:

  1. Referring to Section 1016, before the CCC Amendment Act, the registrations of partnerships or companies must be made at the Registration Office as prescribed by the Minister responsible for the registration of partnerships and companies. By virtue of the CCC Amendment Act, the registrations of partnerships or companies can also be made at the Registration Office where the principal business office of the partnership or company is situated.
  2. Referring to Section 1097, before the CCC Amendment Act, any three or more persons may promote and form a limited company by subscribing their names to a memorandum and otherwise complying with the provisions of the Civil and Commercial Code. By virtue of the CCC Amendment Act, any two or more persons are now enough to promote and form a limited company by the same procedures before the CCC Amendment Act;
  3. Referring to Section 1099, by virtue of the CCC Amendment Act, if the registration of the company is not made within three years from the date of registration of the Memorandum of Association, such the Memorandum of Association is invalid;
  4. Referring to Section 1162/1, by virtue of the CCC Amendment Act, a Board of Directors meeting can be possibly held electronically rather than only an on-site meeting except it is prohibited by the Articles of Association;
  5. Referring to Section 1128, before the CCC Amendment Act, every share certificate shall be signed by at least one of the directors. By virtue of the CCC Amendment Act, every share certificate shall now be signed by at least one of the directors and also bear the seal of the company (if any).
  6. Referring to Section 1175, before the CCC Amendment Act, a notice of summoning of every general meeting shall be published at least once in a local newspaper. By the virtue of the CCC Amendment Act, a notice of summoning of every general meeting is no longer required to be published in a local newspaper anymore unless a company has any share certificate to bearer then such a company is obliged to publish such a notice in a local newspaper or electronically according to the rules and procedures prescribed in the ministerial regulations.
  7. Referring to Section 1201 paragraph 4, before the CCC Amendment Act, distribution of dividends shall be made within one month from the date of the resolution of the general meeting or of the board of directors. By virtue of the CCC Amendment Act, distribution of dividends shall be completely made within one month from the date of the resolution of the general meeting or of the board of directors.
  8. Referring to Part 9: Amalgamation of Limited Companies. The key change in this part is that before the CCC Amendment Act, a limited company formed by the amalgamation of two or more companies will be a new company, howsoever by virtue of the CCC Amendment Act, the company amalgamation will result in any of the following:
    • Amalgamate to a new company and the amalgamated companies cease to be a juristic person. (A+B=C)
    • Amalgamate to one of the amalgamated companies, one company retains the juristic person’s status and the other one ceases to be a juristic person. (A+B=A or B)
low angle photography of high rise building