As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2021. This guide outlines all of the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Guides to Doing Business series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource when planning an international business strategy or researching a new market.

Thailand’s Ministry of Interior has issued new regulations requiring owners, occupants, and operators of certain types of buildings to obtain third-party life, body, and property liability insurance. The Ministerial Regulations Prescribing the Type or Category of Buildings Which Must Apply for Legal Liability Insurance B.E. 2564 (2021) were announced in the Government Gazette on September 6, 2021, and will come into effect on November 5, 2021. The new regulations, which repeal and replace similarly titled regulations from 2005, detail third-party liability insurance rules, procedures, conditions, and minimum insurance amounts for specific building types and activities. The new regulations clearly distinguish the building use phase from the construction, modification, relocation, and demolition phases. They also add a new requirement for the owner, occupant, or operator of large buildings to apply for third party liability insurance during the construction, modification, relocation, and demolition phases. Building Construction, Modification, Relocation, and Demolition When a permit for construction, modification, relocation, or demolition is granted for a building classified as a high-rise, large, or extra-large building, the owner, occupant, or operator who obtained the permit must apply for third-party liability insurance before work begins. If work is already in progress when the regulations come into effect, the permit holders will have 30 days to apply for third party liability insurance covering the remainder of the period specified in the permit. Building Usage Owners or occupiers of public assembly buildings, hotels with more than 80 rooms, entertainment venues of 200 square meters or more, and large freestanding or building-attached signboards and support structures must also apply for third party liability insurance covering accidents related to the condition or use of the structures. Owners or occupiers have 30 days from the completion of the construction, modification, relocation, or change of use of the buildings, as the case

“Condominium” combines the Latin roots com (“together”) and dominium (“right of ownership or property”) into a word that literally means “shared property.” This shared ownership of property—which in the condominium’s case has come to mean a large building of residential units—has been enormously popular in Bangkok and other Thai cities, and regardless of the economic situation in Thailand, condominiums continue to be attractive to Thai people and foreign investors due to their favorable locations, pleasant common spaces, access to convenient methods of transportation, and reasonable prices. The land available for “low-rise” buildings—such as detached houses, townhouses, twin houses, or commercial constructions—is expected to become progressively scarcer in urban areas, with condominiums or “high-rise” residences eventually becoming the residence of choice. Despite its advantages, living in condominiums involves the coming together of the people owning or leasing the units, so various conflicts among the owners or with the condominium juristic person are bound to arise from time to time. As a continuation of a similar discussion of condominiums that we wrote a few years ago, this article aims to provide some clarity to these issues by identifying some key elements of the legal framework governing condominiums, considering some of the more common disputes that arise, and suggesting legally sound resolutions to those disputes. Legal basics The main law governing condominiums in Thailand is the Condominium Act B.E. 2522 (1979), which establishes the following key definitions: Condominium. A building in which the ownership is divided into multiple parts consisting of individual personal properties and jointly owned common property. Personal property. A condominium unit, including constructions and land provided to each unit owner. Personal property can be divided into two main types: a “unit,” which refers to the parts of the condominium that are divided to be owned by different persons; and

A new regulation from Thailand’s Ministry of Interior grants a three-year extension for obtaining an alteration permit or a certificate to change the use of a hotel building. The eligibility period—which had been scheduled to expire on August 18, 2021—is now open until August 18, 2024. The extension was announced in the Government Gazette on August 6, 2021, after Ministerial Regulation Prescribing the Descriptions of Other Types of Buildings Which Can Be Used for a Hotel Business Operation (No. 3) B.E. 2564 (2021) was issued on August 2. The regulation, which is issued under the Building Control Act B.E. 2522 (1979), specifies which types of buildings can be used as “hotels providing accommodation only,” and which types can serve as “hotels providing accommodations and a restaurant, or a place for serving or cooking food.” This is the third such regulation, with previous versions being issued in 2016 and 2018 prescribing standards of the qualified buildings. The previous regulations set requirements for the following building features: The width of walkways in the building; The width and length of ladders; The maximum loading weight in all parts of the building; and The number of standard fire extinguishers installed on each floor. Moreover, the previous ministerial regulations stipulate that the building’s boundaries, height, space from other buildings, setback, and parking lots must comply with the building control regulations effective at the time of construction or alteration. These regulations also include requirements on additional fire alarm systems and emergency lighting system, as well as details on the fire escapes and ladders for buildings over a certain size. For more information on property and building regulations in Thailand, please contact Chaiwat Keratisuthisathorn at [email protected] or +66 2056 5507.