H&P is one of the most well known law firms in Thailand providing services for private clients and high net worth individuals. Our practice for our private clients goes from structuring international succession plans, advice on Thai Inheritance Law, citizenship by investment and purchase of villas and yachts among many others. Our lawyers have prepared the following preliminary comments on the basic concepts when registering a yacht in Thailand.
The Law related to registration of vessels and yachts in Thailand is the Thai Vessel Act, BE 2481. The section 5 this Act defines the concepto of Vessel meaning a very range of marine conveyance, in other words we are referring to all kind of vessels whether for Marine commerce, Fishery, pleasure vessels or Yachts. All have to register under the Law of Thai Vessel Act.
The registration of a Thai vessel under this Act will be refer to section 7 that specify the person who is eligible to hold ownership of a registered Thai vessel operating marine commerce in the territorial waters. The section points out that it must possess the qualifications as follow:
1) A natural person of Thai nationality;
2) An unregistered ordinary partnership having all partners being natural persons of Thai nationality;
3) A State enterprise under the law
4) A juristic person established under Thai law, as follows;
a)A registered ordinary partnership having all partners being natural persons of Thai nationality;
b)A limited partnership having all partners with unlimited liability being natural persons of Thai nationality, and not less than seventy percent of shares were held by persons other than foreigners
c)A limited company having not less than half of Directors being of Thai nationality, not less than seventy percent of shares of the registered capital fund were held by persons other than foreigners
d)A public limited company having not less than half of Directors of Thai nationality, and not less than seventy percent of paid-up stocks were held by persons other than foreigners
The tex of the Thai law refers to foreigner as “alien” and the Foreign Business Act B.E. 2542(1999) defines “alien” in section 4. On this regard, H&P lawyers in Bangkok can advice a foreigner individual or foreign company to legally structure and proceed with the registration of Vessels and yachts in Thailand. Our lawyers would like to distinguish the registration of the vessel in two different purposes, commerce, and noncommercial vessel.
Firstly, the registration of the vessel for non-commercial, recreation and sports vehicles, pleasure vessel or Yacht: if it the vessel belongs to a person who qualifies according to section 7 above mentioned or the vessel belongs to a person who qualifies according to section 7 but used for operating marine commerce in the territorial waters but with the size not exceeding ten gross ton, or a seagoing vessel other than steamship of the size not exceeding twenty gross ton, or a waterway vessel other than steamship of the size not exceeding fifteen gross tonm then the law points out that it is not required to apply for registration under this Act. The vessel as mentioned in this section, shall also be a Thai vessel too according to section 9.
Secondly, registration of the vessel for the purpose of commerce is regulated under section 5 that defines the meaning of Marine commerce in the territorial waters meaning passenger or goods transport or towing for seeking profit from one port or locality to another within the territorial waters of Thailand. The vessel for purposes of operating marine commerce, if it is a steamship of the size exceeding ten gross ton, or a seagoing vessel other than steamship of the size exceeding twenty gross ton, or a waterway vessel other than steamship of the size exceeding fifteen gross ton must register the Thai vessel operating marine commerce in the territorial water and the person who register must be only a person defined according to section 7.
To sum up, a foreign vessel can not carry on marine commerce activities within Thai territorial waters but there is a Notification of the Ministry of Transport issued to allow for the purposed of pleasure and yacht of the person who is not eligible to hold ownership of registered Thai vessel operating marine commerce in the territorial waters. This notification allows the purpose of pleasure and yacht that is not Thai vessel and it has a length more than 30 meters and a transport carrying less than 12 persons.
If it is a vessel of a person who do not have any qualification as following in section 7 of the Thai Vessel Act, B.E. 2481, it allows servicing any traveler no matter Thai or foreigner to operating marine commerce. This notification comes into force on 17 August 2015. The certified license is 1 year of expiration. This notification is an exception of section 47 to permit a foreigner’s vessel can operate marine commerce in the territorial waters of Thailand.
If you do not register the Thai vessel and do commerce in territorial waters of Thailand according to section 68/6 you shall be imprisoned not over 1 year or fined not over twenty thousand Baht, or both and the vessel will be confiscated.
If you need to talk with a law firm in Thailand for registration of vessels and yachts in Thailand, please contact H&P lawyers at [email protected]
