Unlocking Opportunities in Senior and Dependent Care Businesses
According to Thailand’s National Statistical Office, the country officially entered the status of an “aged society” in 2024. This aligns with a global trend highlighted in a United Nations report, which underscores the increasing size and proportion of older individuals in populations worldwide.
As a prominent health and wellness hub, Thailand has experienced growing demand for health-focused services. To address this societal shift and tap into emerging opportunities, the government has introduced attractive incentives aimed at supporting the evolving needs of its aging population. These measures are designed to unlock potential in adapting to demographic changes while attracting investors to high-growth sectors such as senior and dependent care businesses.
The key details of these initiatives are outlined below:
1. Licenses
Senior and dependent care businesses, including day care centers, residential homes, and nursing homes, fall under the legal definition of the “Business of Caring for the Elderly or Dependent Persons” (collectively referred to as the “Business”). Operating such businesses requires a license, as stipulated by the Health Business Establishments Act B.E. 2559 (2016) and its amendments.
These businesses are further regulated under the Ministerial Regulation on the Specification of the Business of Caring for the Elderly or Dependent Persons as a Health Business Establishment B.E. 2563 (2020) (the “Ministerial Regulation”).
The Ministerial Regulation classifies this Business into three distinct categories, as outlined below:
| No. | Categories | Criterion |
|---|---|---|
| 1. | Day Care | : The business that provides day care services for the elderly or dependents, with activities to care for, promote and rehabilitate the health of the elderly or dependents without overnight stays. |
| 2. | Residential Home | : The business that provides services for the elderly, including activities to promote and rehabilitate the elderly by providing a place to stay. |
| 3. | Nursing Home | : The business that provides care and support of the elderly or dependents, including activities to care for, promote and rehabilitate the health of the elderly or dependent persons, with overnight stays. |
For each category, business owners must adhere to specific requirements, such as implementing enhanced safety measures for businesses offering overnight accommodations or residential services. Licensing costs also vary depending on the type of service provided and the size of the service area, which is calculated based on square meters.
To obtain the required license, applicants must submit an application form to the Health Service Support Center under the Department of Health Service Support, Ministry of Public Health.
2. Additional Requirements for Foreign Companies
Under Thailand’s Foreign Business Act B.E. 2542 (1999) (the “FBA”), a company incorporated under a foreign law or a company incorporated under Thai law with foreign shareholders holding 50% or more of the shares is classified as a foreign company.
The business of health care is categorized as a business under List 3 of the FBA, in which a foreign company must obtain authorization from the Foreign Business Administration Division, under the Department of Business Development (DBD), Ministry of Commerce (MOC).
3. Business Incentives
- 3.1 Specific criteria on the Senior and Dependent Business
The incentives by the Board of Investment (the “BOI”) are outlined in the Announcement of the BOI No.9/2565, setting the criteria for entities operate the senior or dependent care business, as detailed below:No. Criteria Details 1. Nationality Must have Thai national shareholders holding 51 percent or more of its registered capital. 2. Compliance Must be a business focused on caring for the elderly or dependent persons. 3. Capacity Must have 31 or more beds for overnight stays of admitted patient. 4. Activity Must provide care and support for senior/dependent persons by allowing overnight stays and offering rehabilitation activities* 5. License Must obtain license to operate a health business establishment before exercising the incentive, and before the full operation deadline. 6. Minimum Investment Must have minimum capital of investment not less than 1 million Baht (excluding costs of land and working capital) - 3.2 Benefits
The entities being granted BOI incentives under the criteria are entitled to enjoy the benefits granted as follows:
No. Categories Details 1. Corporate Income Tax An exemption on the Corporate Income Tax for 3 years. 2. Import Duties An exemption on the import of 1) machinery, 2) raw materials used in R&D, and 3) raw materials used in production for export. 3. Non-tax Incentives Such as permits for owning land, permits to bring skilled persons and experts to work, visa and work permit benefits, etc.
In conclusion, as one of the world’s aging societies and a renowned global health and wellness destination, Thailand has experienced a growing demand for health-focused and well-being services. To support this trend, the government, through the Board of Investment (BOI), offers attractive incentives, including corporate income tax exemptions, reductions in import duties, and various non-tax benefits, specifically targeting high-potential sectors such as senior and dependent care businesses.
While foreign companies face additional operational requirements and are currently ineligible for BOI incentives due to structural restrictions, they still have opportunities to enter this promising sector. Operators must also comply with a range of licensing and legal obligations, including obtaining health business licenses and adhering to stringent safety and waste management regulations.
Despite these challenges, the senior and dependent care business sector presents significant investment potential in Thailand, underpinned by the country’s demographic trends and strong health and wellness reputation.
For businesses in the senior and dependent care sector, ILAWASIA provides expert legal advice and comprehensive regulatory support to ensure compliance and help clients capitalize on emerging opportunities in this dynamic industry. Let us be your trusted partner in navigating the evolving legal landscape and driving the success of your business.
Author:
Tanadee Pantumkomon, Partner;
Thanaphorn Kaewsukko, Associate; &
Kornkod Suk-aram, Associate.
ILAWASIA Earns Top Recognition from CleverThai Across Multiple Legal Practices
ILAWASIA has been recognized by CleverThai for our exceptional legal services in Bangkok, Thailand.
The recognition highlights our commitment to excellence and client satisfaction across multiple practice areas.
ILAWASIA has been listed as:
The Best Personal Injury Lawyers in Bangkok, Thailand: Recognized for our expertise in handling personal injury cases with compassion, precision, and dedication to achieving the best outcomes for our clients.
One of the Top Family Lawyers in Bangkok, Thailand: Celebrated for our ability to navigate sensitive family law matters, including divorce, child custody, prenuptial agreement, and will and testament.
One of the Best Property Lawyers in Bangkok, Thailand: Acknowledged for our proficiency in property law, offering comprehensive support in real estate transactions, property disputes, and regulatory compliance.
These accolades reflect our unwavering commitment to providing top-tier legal services tailored to the unique needs of our clients. We remain dedicated to upholding the highest standards of professionalism and legal expertise in all our practice areas.
Source:
cleverthai.com/best-personal-injury-lawyers-bangkok/
cleverthai.com/top-family-lawyers-bangkok/
cleverthai.com/best-property-lawyers-bangkok
New Draft Bill for Cannabis and Hemp of Thailand
Since 9 June 2022, cannabis and hemp are no longer classified as narcotics under the Narcotics Code, which may lead to widespread possession, consumption, and use. This situation could have significant impact on public health, economy, and society.
To address these concerns and align with government policy, on 6 November 2024, the Ministry of Public Health has proposed the Cabinet, a new draft bill to regulate the cultivation, production, import, export, sale, and advertisement of cannabis, hemp, and their extracts (the “Draft Bill”). The Draft Bill is currently under review and consideration by the Cabinet.
KEY PROVISIONS OF THE DRAFT BILL
A. Licensing Requirements
The Draft Bill establishes that the cultivation, production, import, and sale of cannabis, hemp, and their extracts require licenses from the Director-General of the Department of Thai Traditional and Alternative Medicine.
The application for a license to cultivate cannabis or hemp will be categorized based on the size of the cultivation area:
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- Small area : Not exceeding 5 rai (approximately 1.98 acres)
- Medium area : More than 5 rai but not exceeding 20 rai (approximately 7.91 acres)
- Large area : More than 20 rai but not exceeding 400 rai (approximately 158.16 acres)
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In addition to a general license, the import and export of cannabis, hemp, and their extracts will require a specific permit for each transaction.
B. Exempt Activities
The Draft Bill exempts the following activities from licensing requirements:
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- The production, export, or sale of roots, branches, leaves, stems, or seeds of cannabis or hemp (excluding cannabis and hemp flowers).
- The prescription of cannabis, hemp, or their extracts for the treatment, care, alleviation of human ailments, or disease prevention by licensed medical practitioners, dentists, Thai traditional medical practitioners, applied Thai traditional medical practitioners, Chinese medicine practitioners, or folk medical practitioners, as defined under the laws on Thai traditional medical professions.
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C. Applicant Eligibility
Applicants for the licenses must not possess any prohibited characteristics as specified in the Draft Bill. In addition, the following eligibility criteria apply:
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- Individuals must be Thai nationals, of at least 20 years old, and residents of Thailand and has no prohibited characteristics under the law.
- Companies must be Thai nationality with its office in Thailand, with directors who are Thai nationals and of at least 20 years old and has no prohibited characteristics under the law.
- A community enterprise that is not a legal entity under the law on community enterprises with its representative who is Thai national and of at least 20 years old and has no prohibited characteristics under the law.
- The Thai Red Cross Society or a government agency with related responsibilities under the law.
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D. License Validity and Renewal
Licenses are valid for 3 years from the date of issuance and must be renewed before expiration.
E. Limitation on the Use of Cannabis, Hemp and Their Extracts
The Draft Bill prohibits any consumption of cannabis, hemp and their extracts, except the following cases:
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- Treatment, relieve of pain for human and prevention from diseases including the use for wellness under the control of licensed medical practitioners, dentists, Thai traditional medical practitioners, applied Thai traditional medical practitioners, Chinese medicine practitioners, or folk medical practitioners, as defined under the laws on Thai traditional medical professions;
- Research by government authorities, research for medical study, pharmaceutical study or science, medical pharmaceutical or science service, for the benefit of medical use, pharmaceutical use, Red-Cross use or academic use; and
- Production of herbal products, medical products, food products, cosmetic products or other products as specified by relevant laws and regulations.
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F. Fees
License fees will be determined by ministerial regulations issued by the Ministry of Public Health, subject to the maximum rates outlined in the annex to the Draft Bill. Fee amounts may vary based on the cultivation area, the quantities of cannabis, hemp or their extracts, or the size of the licensee’s business.
G. Advertisement
The Draft Bill prohibits the advertisement or marketing communication of cannabis flowers or resin, hemp flowers or resin, extracts, and tools or equipment related to cannabis smoking. Additionally, all other advertisements concerning cannabis, hemp, or their extracts must not be false, misleading, or exaggerated, nor support or encourage illegal or immoral actions.
CONCLUSION
In conclusion, the new Draft Bill offers a clearer regulatory framework for the cultivation, production, import, export, sale, and advertisement of cannabis, hemp, and their extracts, addressing significant gaps in the existing legislation. While the timeline for its enactment remains uncertain, the approval process by the Cabinet and Parliament is underway, with expectations that the new law could be in place by Q2 of 2025. Once enacted, this legislation will not only enhance legal clarity but also bolster the stability and growth potential of the cannabis and hemp industries in Thailand, creating a more secure environment for investors and entrepreneurs.
For businesses navigating these changes, ILAWASIA offers expert legal advice and regulatory support to help clients stay compliant and seize emerging opportunities in this dynamic sector. Let us be your trusted partner in ensuring your business thrives in the evolving legal landscape.
AUTHOR:
Tanadee Pantumkomon, Partner
Wachinorot Siladet, Associate
Phoomphop Rungsri, Associate
APAA 2024 Annual Conference
#APAA2024 We’re excited to join the Asian Patent Attorneys Association (APAA) 2024 annual conference in the vibrant city of Manila. A fantastic opportunity to connect with global IP leaders, share insights, and stay ahead of the curve in the world of intellectual property.
Stay tuned for updates as we make meaningful connections and explore the future of innovation! 💼📚
#ILAWASIA #Manila #IntellectualProperty #GlobalConnections #Innovation
ILAWASIA listed as ALB Fastest Growing Firms 2024.
“ILAWASIA Recognized as One of ALB’s Fastest Growing Firms 2024”
ILAWASIA Co., Ltd. is proud to be listed among the Fastest Growing Firms 2024 by Asian Legal Business (ALB). This recognition highlights our consistent growth, innovative approach, and unwavering commitment to delivering exceptional legal services across Southeast Asia.
The ALB Fast 30 list celebrates law firms that have significantly influenced the future of the legal industry in Asia, standing out as leaders in an increasingly competitive and dynamic market.
We extend our gratitude to our clients, partners, and dedicated team for their trust and contribution to this remarkable achievement. As we continue to expand and innovate, we remain committed to excellence in meeting the evolving needs of our clients in a dynamic legal landscape.
Source : https://www.legalbusinessonline.com/sites/default/files/e-magazines/ALB-ASIA-NOVEMBER-2024/
#ILAWASIA #ALB #ALBFast30 #FastestGrowingFirms2024 #AsianLegalBusiness #LegalExcellence #GlobalRecognition
A Notification of the Procedure for Employment of Foreign Labor in the Kingdom of Cambodia
Overview:
The Cambodian Labor Law, enacted on March 13, 1997, and amended in 2007, 2018, and 2021, requires foreign workers to obtain a work permit and employment card from the Ministry of Labour and Vocational Training (MLVT). On August 20, 2014, MLVT issued Prakas No. 196 on foreign labor employment, followed by Notification No. 022/24 ក.ប/ស.ជ.ណ.ម.ហ, on August 12, 2024,
Key Provisions:
1. The Procedure for Enterprise Establishment:
- – Firstly, the enterprise shall apply for a letter permit of employment for foreigner labour from the Ministry of Labour and Vocational Training, not more than 10% of the total number of Cambodian workers.
- – Secondly, registration of employment contract.
- – Lastly, apply for a foreigner work permit and foreigner employment card.
2. The Procedure for Foreigners:
- – Firstly, the foreigner shall request the owner or director of the enterprise to present a letter permit of employment for foreigner labour issued by the Ministry of Labour and Vocational Training
- – Secondly, the foreigner shall sign an employment contract with the owner or director of the enterprise establishment.
- – Lastly, apply for a foreigner work permit and foreigner employment card.
3. Documents require
Submit the application on www.fwcms.mlvt.gov.kh with a passport, recent patent tax certificate, health checkup certificate, and a 4×6 cm photo.
4. Penalty
Failure to apply for a work permit for the year 2025 within the deadline shall result in factories and enterprises being subject to a penalty of KHR 12,600,000 (about USD3,150) per person, in accordance with the No.106 in Annex 1of PraKas of Inter-Ministerial No. 498 dated 31 July 2023 on the Monetary Fine for those who Violate the Labour Law.
Conclusion:
In conclusion, the Cambodian Labor Law mandates that foreign workers obtain a work permit and employment card from the Ministry of Labour and Vocational Training (MLVT). The law outlines clear procedures for both employers and foreign workers, including documentation requirements and penalties for non-compliance, which may reach KHR 12,600,000 (approximately USD 3,150) per worker in 2025.
Once a foreigner obtains a work permit and employment card, a foreigner can apply for a work visa either at a Cambodian embassy abroad, online via www.evisa.gov.kh, or at Cambodia’s international borders. These regulations ensure adherence to labour standards and facilitate the integration of foreign labour in Cambodia.
Authors:
Vicheka Lay; and
Hort Lypheng
Contact Detail:
2025 Minimum Wage for Workers in Garment, Textile, Footwear, Travel Goods, and Bag Sectors under the Cambodian Minimum Wage Law
Overview:
Article 4 of the Law on Minimum Wage, enacted on July 6, 2018, states that the minimum wage is determined by a PraKas from the Minister of Labor. On September 20, 2024, the Ministry of Labour and Vocational Training (MLVT) issued Prakas No. 221/24 ក.ប/ប្រ.ក.ខ.ល on determining the minimum wage for workers in the garment, textile, footwear, travel goods, and bag sectors, which will be effective from January 1, 2025. Any conflicting provisions of this Prakas are void.
Key provisions:
The previous minimum wage was $202 per month for probationary workers and $204 for regular workers, according to PraKas No. 283/23 ក.ប/ប្រ.ក.ខ.ល issued on September 29, 2023. Recently, in accordance with the Article 2 of Prakas No. 221/24 issued on September 20, 2024, by MLVT, workers in the garment, textile, footwear, travel goods, and bag sectors, will receive the following minimum wages:
1- For probationary workers is at $206 per month. At the end of the probationary period and became a full-time worker, the minimum wage shall increase to $208 per month.
2- For regular workers, the pay rate is based on production level. If this results in a rate above the minimum wage, workers receive the higher amount. If it falls below the minimum wage, the employer must adjust pay to meet the minimum wage ($206 per month for probationary workers and $208 per month for regular workers).
Other benefits for workers in the garment, textile, footwear, travel goods and bag sectors remain unchanged, including a transportation or accommodation allowance of $7 per month, an attendance bonus of $10 per month, a meal allowance for overtime working of $0.50 or one free meal, and a seniority bonus of $2 to $11 per month for workers with 2 to 11 years of services.
Penalties:
Under Article 24 of the Law on Minimum Wage 2018, employers who commit any of the following violations can be fined up to 40,000,000(forty million) Riels:
- the wage must be at least equal to the minimum wage set by a PraKas of the Minister of Labor .
- any agreement, written or oral, requiring wages below the legal minimum is null and void .
- in subcontracting or wage-based work, skilled workers should earn at least the guaranteed minimum wage. Workers who paid by the quantity of product must be paid based on their actual output. If their earnings exceed the minimum wage, they receive the extra. If it’s less, the employer must top it up to meet the guaranteed minimum wage .
- all workers covered by this law must be paid equally for the same work, skills, and conditions, regardless of origin, gender, or age .
Conclusion:
In conclusion, Article 4 of the Law on Minimum Wage establishes that the minimum wage is determined by a PraKas from the Minister of Labor. As of September 20, 2024, the Ministry of Labour and Vocational Training has set new minimum wages for workers in the garment, textile, footwear, travel goods, and bag sectors, effective January 1, 2025. Probationary workers will earn $206 per month, increasing to $208 upon full-time status, while regular workers’ pay is based on production levels, with provisions to ensure it meets the minimum wage. Additional benefits for these workers remain unchanged, and strict penalties are imposed for violations of the minimum wage laws, emphasizing the importance of fair compensation regardless of a worker’s origin, gender, or age.
Article 4 of the Law on Minimum Wage 2018.
Ibid., Article 6 Paragraph 1.
Ibid., Article 7.
Ibid., Article 8.
Attendance at the Cambodian Trust Law Seminar
On October 11, 2024, Vicheka Lay delegated Hort Lypheng, attended a “Trust Law” seminar by AmCam Exchange and CamEd University
Training on E-Commerce Regulations and Operation
On October 23, 2024, Mr.Lay Vicheka as Vice-President of Kampot-Kep Provincial Chamber of Commerce, assigned Miss. Um Makara participates in the training program “Skills in Setting Up E-commerce Stores for Small and Medium Enterprises.”
The Cambodia Chamber of Commerce, in collaboration with Codingate Technology, organized a two-day training course focusing on “Skills in Setting Up an Online Shopping Store (E-commerce)” aimed at all traders, merchants, and members who own small and medium enterprises. At the event, His Excellency Oknha Nguon Meng Tech, Director General of the Cambodia Chamber of Commerce, stated at the opening ceremony that the event is being held under the auspices of Oknha Kith Meng.
The primary objective of this training course, hosted by the Cambodia Chamber of Commerce, is to equip business owners with essential digital technology knowledge, enabling them to thrive in the e-commerce market. Participants will benefit from expert-led sessions covering key topics such as setting up an e-commerce shop, digital marketing strategies, target customer identification, and the utilization of various automation tools for business optimization in today’s rapidly evolving digital landscape.
Please note that the aforementioned program takes place over two days, from October 23 to October 24, 2024, at the Cambodia Chamber of Commerce, with participation from more than 70 traders, businesspeople, and members from various provinces.
タイ、国際商標登録に対する現地登録証の発行を開始
ニュース速報：
タイ、国際商標登録に対する現地登録証の発行を開始
タイが2017年にマドリッド議定書に加盟して以来、国際商標登録（IR）の手続きはよりスムーズになりました。しかし、タイ商標局（TMO）の技術的な問題により、タイを指定した国際商標登録に対するタイでの登録証の発行が遅れていました。この度、タイ商標局はこの問題を解決し、タイを指定した国際商標登録に対する登録証の発行を開始しました。これにより、公的な認証を待っていたブランド所有者にとって大きな進展となりました。
長年、タイ商標局は世界知的所有権機関（WIPO）による登録許可の声明に基づき、タイでの登録証を発行することを約束していましたが、商品およびサービスの仕様に関する暫定的拒絶通報が原因で遅延していました。2024年8月時点でタイ商標局は技術的な問題を解決し、同年9月初旬から登録書の発行を開始しています。
タイ商標局は、まず2017年および2018年に提出されていた申請から未処理案件を処理しています。暫定的拒絶通報を受けなかった国際商標登録については順次登録証が発行されています。この進展により、長らくタイでの公的な登録証を待っていたブランド所有者にとって朗報となります。
今後の進展
タイ商標局が未処理案件に取り組む中で、特に暫定的拒絶通報を受けた国際商標登録指定を含むポートフォリオについては再確認されることをお勧めします。この進展は、タイにおける商標登録手続きにおける重要な変化を示しており、国際的な商標出願者にとって、より明確で効率的な保護が提供されることになります。
ブランド所有者は、これらの変更について最新の情報を確認し、ポートフォリオに関するサポートが必要な場合はご連絡ください。
著者
- Somphob Rodboon, Managing Partner
- Thanapha Phetkeereeskul, Senior Associate
- Gensei Ohama, Attorney-at-Law
- Contact us at JapanDesk@ilawasia.com
