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Integrity Legal

Archive for the ‘Legal Opinion’ Category

24th November 2009

Thailand is one of the major trading centers in Southeast Asia. As a result, many foreign nationals wish to conduct business in the Kingdom of Thailand. However, the Thailand Foreign Business Act precludes foreign ownership of Thai companies. Strictly speaking, foreign ownership is not technically illegal, but operating such a company for profit is against the law.

When we say, “foreign ownership,” we mean foreign majority ownership as foreign nationals are allowed to own a minority stake in a Thai company, up to forty-nine percent. If a Thai owns fifty-one percent of a company in Thailand, then that company is considered to be a “Thai Company.”

There are some who incorporate “Thai companies” that utilize so-called “nominee shareholders.” A nominee is one who owns shares in a Thai company on behalf of another. A nominee is not an “active shareholder,” in a company. Under current Thai corporate law nominee shareholders are illegal. However, defining what constitutes a “nominee shareholder,” can be difficult.

Thai law does provide for a way around the restrictions imposed by the Foreign Business Act. There are ways to license a Thai Company, with majority foreign ownership, to conduct business in Thailand.

On method of facilitating a foreign company to conduct business in Thailand is through a Foreign Business License. These documents can be difficult to obtain and the process for obtaining a Thai foreign business license can be very time consuming. Once granted the license will specify the exact nature of the business and the company will be precluded from conducting any other type of activity, unless another license is obtained.

Another method of facilitating foreign ownership of a Thai company is through the US-Thai Amity Treaty. As the name suggests, the US-Thai Treaty of Amity and Economic Relations is a bilateral agreement between the Kingdom of Thailand and the United States of America. A company certified under the terms of the Treaty is given “national treatment,” allowing it to operate in the same way as a “Thai Company.” The major exception being that an Amity Treaty Company is precluded from owning real estate in Thailand. Other types of Thai property could be owned by an Amity Company, such as a Thai Condo. Also, the provisions of the Treaty grant the aforementioned benefits exclusively to United States Citizens. Therefore, this method of certification is not for everyone.

The Australia-Thai free trade agreement provides some special benefits to Australians in Thailand as Australian Citizen may be allowed to own a majority stake in certain types of Thai companies.

A final method of licensing a foreign company in Thailand is through the Board of Investment or BOI. A BOI company can receive special benefits in the form of rights to operate and some BOI companies can own land. That being said, BOI companies are very difficult to incorporate and require a great deal of legal expertise to set up. BOI Companies are generally not advisable for those thinking of establishing a small Thai business. For large enterprises, such a setup may be advisable due to the fact that a Thailand visa and/or work permit is generally easier to obtain for a BOI company.

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22nd November 2009

In many ways, the laws of the Kingdom of Thailand and those of the United States of America are very similar, but in some ways these two systems are extremely different. For example, the Kingdom of Thailand has a Civil Registrar’s office also known as an Amphur office, or Amphoe Office, in Thai. These offices act as repositories of vital statistics of those living  in the Kingdom. They are important because one must register many official documents with this office in order to be provided certain legal protections. A common example of the duties associated with the Amphur office are those associated with a Thai marriage registration. An Amphur can register a Thai marriage in a very short period of time compared to jurisdictions in the United States of America. In some cases, this could also be said about Thai divorces. If a couple has decided to simply divorce by consent, then it is relatively simple to register the divorce in Thailand. However, if the divorce is contested, then there may be problems executing a marital dissolution quickly. In a slightly different situation, if one of the parties to the marriage cannot be found, then it may be difficult to register a divorce because the Amphur office requires that both parties be present when the divorce is registered.

Assuming one must use the courts to dissolve the marriage, the Thai legal system treats divorce similar to the “fault” based system employed by some jurisdictions in the United States. A “fault” divorce system compels the parties to show cause as to why the marriage should be dissolved. The unfortunate consequence of this system is the fact that “fault” divorces take a substantially longer period of time to complete compared to the “no fault” system. The reason for the delay is due, in part, to the large case load of most Thai courts. However, once the Thai court has entered a judgment of marital dissolution, the case is not over. Instead, the divorce judgment must still be registered at the Amphur office.

Registration of Thai divorces at a local Amphur office is somewhat akin to having the Clerk of a “common law” Court record the divorce judgment. This puts the jurisdiction on notice that the dissolution has occurred. The major difference is the fact that a clerk is generally in the same courthouse as the Judge who executed the marital dissolution. In Thailand, one must proceed to a wholly different office, the Amphur, in order to finalize the divorce by having the Amphur officer record the dissolution.

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21st November 2009

We discuss the K1 visa on this blog frequently. A K2 visa is a derivative child visa designed for the child of a beneficiary of a K1 fiance visa. Under the government interpretation of US Immigration law. Children in the United States of America on a K2 visa who fail to adjust their status before the age of 21 “age out,” and must leave the country, apply for a new visa, and then return to the USA on an Immigrant visa. Unfortunately, this system can result in a delay of months or years for the would-be K2 visa beneficiary as Immigrant visa applications for the 21 year old step children of US Citizens can take as long as 3-5 years to be adjudicated. At the time of this writing, the case known as In Re Qiyu Zhang is pending in the US court system and could change this rule.

Advocates for United States Immigration reform await the outcome of this case with great anticipation as a favorable opinion would provide many new benefits to the children of American Immigrants. The American Immigration Lawyers Association (AILA) has filed a brief in support of ending the “age out” interpretation of the K visa statute. To quote the American Immigration Lawyer’s Association directly:

“[T]he only reasonable interpretation of the K visa provisions is that Congress intended that a K-2 visa beneficiary be able to adjust status within the U.S. even after turning 21. Any other interpretation produces absurd results. Congress explicitly provided that the child of a fiancé(e) K-1 visa holder was eligible for a K-2 visa and admission to the U.S. up until he or she turned 21. Under DHS’ interpretation, K-2 beneficiaries …who are admitted to the U.S. shortly before their 21st birthday, and who thus have insufficient time to complete the adjustment process, must immediately depart the U.S. upon turning 21. Congress certainly did not intend for some K-2 visa beneficiaries to be restricted to a visit to the U.S. – in some cases, for only a matter of days – the result that flows inevitably from DHS’s interpretation of the statute. Instead, as demonstrated below, the statute can and must be interpreted to allow all K-2 visa holders, no matter their age after admission, a viable path to adjust to lawful permanent residence status.”

This writer concurs with the opinion in the aforementioned brief as K2 beneficiaries should be allowed to adjust staus even after they have turned 21. Even though the K2 could technically be considered a dual intent travel document, the primary reason for its use is for children to travel to the US and adjust status. In this case, denying Immigration benefits due to age is too arbitrary and failure to adjust status because one reaches the age of 21 violates the spirit of the K visa statute.

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20th November 2009

Unfortunately Thailand is a breeding ground for disreputable firms offering drafting services for a Thai prenuptial agreement. One of the telltale signs of such an operation is a so-called American “lawyer,” offering an American Prenuptial agreement for Thai fiancees. The first thing one ought to do when dealing with anyone claiming to be an attorney: ask for their credentials. An actual licensed attorney from the United States should be able to produce a bar card, supreme court license, or US Federal license to practice law.

That being said, there are further issues to remember when drafting a prenuptial agreement. One major formality should be adhered to when creating a prenuptial agreement and failure to adhere to this formality can severely damage a prenuptial agreement’s later enforceability. This important formality is a review with an independent attorney.

A prenuptial agreement, like many legal contracts, requires that all parties understand the agreement at the time that they sign it. In cases where the agreement is with a Thai fiancee, it is wise to have both a Thai version of the agreement and an independent attorney who can review the agreement with the fiancee so that she understands all aspects of the agreement and all of the legal rights and benefits that she is both acquiring and relinquishing by signing the agreement. Having the agreement drawn up by an unlicensed attorney runs the risk of having its provisions later thrown out due to poor draftsmanship. Further, failure to have an independent attorney review the document with the Thai fiancee could result in a court finding that the provisions of the agreement should not be followed because the Thai fiancee did not understand what she was signing when she signed it.

For these reasons, it is highly advisable to retain a licensed attorney to draft a prenuptial agreement in both Thai and English. A legitimate attorney can then refer the Thai fiancee to another licensed independent attorney who can provide an accurate and impartial assessment of the agreement as well as answer any questions that the Thai fiancee might have.

Some couples opt to have their signatures notarized and in Thailand an attorney will likely have access to a Thai notary. If the couple plans to sign the agreement in the United States, then it would be wise to retain the services of a notary in the state where the agreement is signed. A notary must actually witness the signatures of both parties. At American Citizen Services at the US Embassy in Bangkok the consular officers can provide notary services. Although a Thai notary is valid if the agreement is signed in Thailand.

For more information, please see Thailand Prenup.

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13th November 2009

In a previous post the issue of the G-28 Notice of Attorney Appearance was discussed. The United States Citizenship and Immigration Service had changed the form in order to update its contents to more accurately convey information regarding the exact nature of an attorney’s representation of a client before the various agencies under the jurisdiction of the Department of Homeland Security. Recently, this author has learned through the American Immigration Lawyers Association that USCIS will continue to accept the old form and will not reject an application simply for utilizing the previous form. To quote USCIS through AILA:

“U.S. Citizenship and Immigration Services (USCIS) announced today that the previous version of the Notice of Entry of Appearance as Attorney or Representative (Form G-28) will be accepted until further notice… On Oct. 1, 2009, USCIS announced the publication of a new Form G-28 and provided a 30-day grace period, until Oct. 30, for accepting previous versions at the USCIS Lockbox facilities or USCIS Service Centers. USCIS encourages attorneys and accredited representatives to use the new Form G-28, however, USCIS will not reject filings of the previous Form G-28 version until further notice. This will allow law students who represent immigrants to use the previous form until changes can be made to the form to accommodate their unique situation.”

As stated previously, the submission of a G-28 puts the United States government (in the form of the Department of Homeland Security, Immigration and Customs Enforcement, Cutoms and Border Protection, and the United States Citizenship and Immigration Service) on notice that an attorney has officially entered their appearance in the case.

Also a G-28 is an effective way of determining if one is dealing with an actual attorney or simply working with a “visa company,” “visa agency,” or phony unlicensed “lawyer.” Unless the government is willing to correspond directly with one’s attorney it may be wise to seek representation elsewhere because this is an integral component of the Immigration attorney-client relationship.

Each and every US Embassy or US Consulate is under the jurisdiction of the US Department of State and not the Department of Homland Security. Therefore, a G-28 has no bearing on these organs of government, but the US Embassy will correspond with an attorney in matters pertaining to a visa application if the attorney is licensed to practice in the USA. That being said, generally the Embassies and Consulates will not deal with unlicensed so-called “lawyers,” and as a result, such an individual can be of little assistance in processing US visa applications.

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12th November 2009

For many people living in Thailand, the prospect of owning property would be considered highly beneficial. Unfortunately, Thai law places great restrictions upon foreign nationals who wish to purchase property. That being said, no such restrictions are placed upon those who wish to lease Thai real estate.

In Thailand, the Civil and Commercial Code provides for leases of varying lengths of time. A lease’s enforceability is based, in part, upon the length of the lease. For example, a common misconception among many foreigners is based upon the idea that a lease can be unrecorded and enforceable for a period exceeding 3 years. However, this is not the case as parties to a Thai lease exceeding 3 years must record the instrument upon the Chanote (Title Deed) in order for a subsequent court to enforce the provisions agreed therein.

In Thailand, the longest lease that one can practically obtain has a duration of 30 years. A novel approach to acquiring what amounts to a longer lease would utilize multiple 30 year leases in which the date of lease commencement coincides with the end of the prior lease. For example, one could acquire a 30 year Thai lease that begins in 2010. Then acquire another 30 year lease to the same property, only this lease does not come into effect until the day after the prior 30 year lease is expired in 2040. As a result of these efforts, the leasee would effectively have a lease that runs for sixty years, but in reality, the applicable Thai laws have been adhered to because the 60 year lease period is the product of two legal leases each for no more than 30 years.

Although this type of legal configuration may be possible in theory, these types of staggered lease agreements, like any legal construct in Thailand, may not be practically feasible as the officers at the Thai land department may not accept the documentation and thereby could preclude this legal instrument from being recorded on the Chanote. Each Thai land office interprets the rules and laws differently. Therefore, retaining experienced counsel in the form of a Thai attorney to assist in recording leases and other property instruments may be beneficial to a foreigner in Thailand as the attorney could assist in facilitating the recordation of a rarely seen legal instrument.

Another issue that may be of interest to foreigners is the use of a Thai usufruct. A usufruct allows a foreigner to retain lifetime rights of use in the underlying Thailand property. Therefore, this type of instrument can act as a sort of “lifetime Thai lease,” as the beneficiary of the usufruct could use the Thai property until his or her death. It should also be noted that different rules apply to those looking to purchase a Thai condo because it may be possible for a Foreign national to purchase a Thai Condo in freehold.

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11th November 2009

There are many people throughout the United States who seem more and more unhappy with the current state of gay rights issues. This unhappiness seems particularly acute when discussing the issue of DOMA (the Defense of Marriage Act). Under current United States Federal law same sex marriages are not recognized by the Federal Government. Therefore, United States Immigration benefits based upon marriage cannot be extended to the same-sex partners of US citizens as same sex marriage is not recognized as a “marriage” for purposes of US Immigration.

Many have advocated either the repeal of the Defense of Marriage Act or the enactment of some federal legislation which would allow for same sex immigration benefits notwithstanding DOMA. A recent example of the latter is the Uniting American Families Act (UAFA) which would provide US Immigration benefits to “permanent partners” of US Citizens and Lawful Permanent Residents. Most efforts to provide same sex immigration benefits have been in vain which has created frustration in the LGBT community as well as amongst advocates for civil rights.

In recent months there has been talk of repealing the “Don’t Ask Don’t Tell” policy in the US military. Also, the US State Department has issued internal rules granting Immigration benefits, in the form of diplomatic and official passports, to the same sex partners of State Department employees working abroad. Many feel that these are “half measures,” simply designed to placate advocates for LGBT rights.  The following, quoted from this source, sums up the feeling of consternation:

Noticeably absent from this civil rights agenda is the repeal of the Defense of Marriage Act. Apparently a Democratic majority in the House, a Democratic super-majority in the Senate, and a Democratic president in the White House isn’t quite enough to get a repeal passed. Of course, other major issues are confronting the nation, and issues dealing with same-sex marriage often bring with them volatile politics. But, with the prospect of trimmed Democratic majorities in Congress after the 2010 midterm elections, is it really unreasonable for the LGBT community to expect action on DOMA now, as opposed to potentially a decade from now, maybe later? [Emphasis in original]

As can be seen from the above quote, the real issue for many is the repeal of DOMA. This legislation lies at the heart of most legal restrictions placed upon same-sex couples in the United States. Currently, the legality of DOMA is also being weighed in the US Federal Courts, but the outcome is far from certain. The repeal of DOMA is likely to remain a controversial issue in the future. A repeal of these restrictions will likely mark a watershed moment for American Civil Liberties.


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9th November 2009

Many long term expatriates in Thailand eventually begin to think about the possibility of applying for Thai Permanent Residence. As with many things in Thailand, acquiring Thailand Permanent Residence can be a very time consuming proposition and failure to maintain one’s Immigration status prior to the submission of a Permanent Residence application could result in major delays and frustration.

Although it can be somewhat simple to obtain a short term Thailand visa (Thai tourist visa, ED visa, etc), obtaining a long stay Thai visa can be extremely difficult in some situations. For many, obtaining a Thai business visa can be a daunting endeavor. Even more difficult is the visa extension process which requires a great deal of documentation for those who are seeking to extend a validly issued Thai business visa.  For those who are staying in Thailand on a visa that is based upon a relationship to a Thai national, the extension process generally requires less documentation, but does require a showing of financial sufficiency.

The reason the extension process is mentioned above is due to the fact that it has a critical impact upon the Permanent Residence application. Under current Thai Immigration regulations a foreign national in Thailand must have maintained at least 3 years of unbroken visa status in Thailand in order to be eligible for Permanent Residence. This means that the foreigner needs to have had 3 visa extensions with no “gaps” of unlawful presence.

Maintaining said status for three years can be a difficult task particularly for those who are employed by multiple companies. One in this position must make certain that their visa status remains unbroken despite changes of employment and/or visa sponsorship. For the self-employed who own their own Thai Company and use it to maintain a Thai visa and work permit, this is less of an issue. Even then, one should keep a close eye upon one’s visa status.

A common question with regard to Thai Permanent Residence and prior visa status involves the Thai Reentry Permit. A Thai reentry permit allows a foreigner to leave the country and return while still maintaining the same visa status. If a reentry permit is obtained then lawful status can be maintained and so long as it is maintained for 3 or more years the visa holder may apply for permanent residence in Thailand provided the other requirements are met. If a visa holder does not return to the Kingdom to maintain their status they will fall out of status and subsequently become ineligible for Permanent residence.

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8th November 2009

In many cases, those thinking of drafting a Thai prenuptial agreement also ponder the related issue of a Last Will and Testament in Thailand. Although both of these instruments can have an impact upon the distribution of Thai property they should not be viewed as completely complimentary devices as they serve different purposes and the drafting of these documents requires adherence to different sets of rules regarding legal formalities.

A Thai prenuptial agreement is an instrument used for the purpose of pre-designating a property distribution should a marital relationship dissolve. If the underlying marriage is registered at an Amphur office (Civil Registrar’s office) in Thailand, then the Thai prenuptial agreement must be simultaneously registered with the marriage. Failure to simultaneously register the Thai prenup could, and may very likely, result in a Thai court subsequently refusing to take notice of the prenuptial agreement when deciding how the marital estate should be divided.

A Thai will is a testamentary instrument that is used to divide the estate of a Thai or one who has died in Thailand. When drafting a will in Thailand, or in any jurisdiction, one must adhere to certain legal formalities in order to ensure that a court will enforce the provisions of the will itself. When a court divides the estate of the deceased, this process is known as probate and a probate court could throw out an improperly drafted will. This is why retaining the advice of a Thai lawyer may be advisable when drafting a new Thai will.

So-called “spouse election,” statutes should be mentioned when discussing Thai prenuptial agreements and wills for United States Citizens looking to marry Thai nationals. A “spouse election,” statute is a type of legislation that exists in many jurisdictions throughout the United States. Such legislation is designed to curb disinheritance of surviving spouses in wills or other testamentary devices. The result of “spouse election,” statutes in the USA is that the spouse of a deceased person can usually be confident that they will inherit at least 1/3 or 1/2 of the net probate estate (the actual percentage depends upon the state). Such rules are important to note for those drafting a prenuptial agreement because a prenuptial agreement should not be drafted in such a way that its provisions contravene the “spouse election” statute in the state of the US Citizen’s residence. Therefore, it may be wise to consider Wills and Prenuptial agreements as wholly separate instruments and thereby keep each of these instruments free of provisions that stray into the bailiwick of the other.

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7th November 2009

The passage of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (“IIRIRA”) has had ramifications that routinely affect immigrants and non-immigrant entrants attempting to enter the US even today. This legislation greatly changed United States Immigration law and procedure.  At the time, IIRIRA was intended to target illegal immigration to the USA. Unfortunately, many of the provisions contained in IIRIRAhave had a critical impact upon legal immigration to the US. This article will explain one of the major powers granted to Customs and Border Protection Officers under IIRIRA: Expedited Removal

When IIRAIRA was passed its provisions Amended section 235 of the Immigration and Nationality Act (INA) to allow for the expedited deportation of foreign nationals who could be deemed inadmissible under either section 212(a)(6)(C) (fraud or misrepresentation) or section 212(a)(7) (lack of documentation) of the INA. The provisions do not call for the decision to be subject to appeal and as a result, a foreign national subjected to expedited removal does not enjoy the same level of due process that most American Citizens take for granted.

If one is subjected to expedited removal, then that alien cannot gain admission to the USA for a period of 5 years. If the alien is subsequently expeditiously removed, then they will be inadmissible to the USA for 20 years. If an alien is subjected to expedited removal, it may be possible for the alien to reenter the USA within their period of inadmissibility, but the alien must first apply for advance permission to reenter the USA, which is akin to an I-601 waiver in that the advance permission must be granted before the alien will be given leave to reenter the country.

Expedited removal should be of particular interest to those seeking to bring their Thai fiancee or spouse to the US on a tourist visa. It is a common misconception that tourist visas can be used to bring a significant other to the US to marry and apply for adjustment of status. Firstly, the US tourist visa is not a dual intent travel document. A tourist visa is intended strictly for those with non-immgrant intent. Therefore, it is unlawful for a foreign fiancee to travel to the USA with undisclosed immigrant intent. That being said, as a practical matter this does happen.  The Customs and Border Protection (CBP) Service can use expedited removal to turn away those attempting to enter the US on a tourist visa if they suspect that the entrant has undisclosed immigrant intent pursuant to section 212(a)(7) of the INA.

This author, along with colleagues in Southeast Asia, has noticed a recent rise in the number of expedited removals of Thais initiated by CBP. In nearly every case, the Thai being removed was the significant other of a US citizen. The Thai nationals removed in these cases were traveling to the US on either a tourist visa or a student visa. Due to this seemingly new trend, it is now more imperative than ever for Thai fiancees and wives of Americans to use the proper K1 fiance visa, K3 marriage visa, or Immigrant visa to travel to the United States.

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