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Ease of Doing Business in

Thailand

Thailand Download Profile (1734.1KB, pdf)
Region East Asia & Pacific
Income Category Upper middle income
Population 67,959,359
GNI Per Capita (US$) 5,620
City covered Bangkok

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 46 46
0
72.53 71.65 down
0.88
Starting a Business 78 93 up
15
87.01 85.03 up
1.98
Dealing with Construction Permits 42 38 down
4
75.65 75.64 up
0.01
Getting Electricity 37 34 down
3
83.22 83.21 up
0.01
Registering Property 68 67 down
1
68.34 68.20 up
0.14
Getting Credit 82 97 up
15
50.00 45.00 up
5.00
Protecting Minority Investors 27 25 down
2
66.67 66.67
-
Paying Taxes 109 106 down
3
68.68 68.76 down
0.08
Trading across Borders 56 54 down
2
84.10 84.10
-
Enforcing Contracts 51 51
-
64.54 64.54
-
Resolving Insolvency 23 26 up
3
77.08 75.41 up
1.67

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

23

DB 2016 Rank:

26

Change in Rank:

up3

DB 2017 DTF (% points):

77.08

DB 2016 DTF (% points):

75.41

Change in DTF (% points):

up1.67

Indicator Thailand East Asia & Pacific OECD high income
Recovery rate (cents on the dollar) info_outline 67.7 33.9 73.0
Time (years) info_outline 1.5 2.6 1.7
Cost (% of estate) info_outline 18 20.6 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 .. ..
Strength of insolvency framework index (0-16) info_outline 13 7.1 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 67.7
    Proceeding Mirage management will initiate reorganization as it serves to preserve the value of the hotel and keep the business; in addition, there is an opportunity under the reorganization process to compromise debts with creditors. As specified in Section 90/12 (6) of the Bankruptcy Act B.E. 2483, no secured creditors shall enforce payment of debt against the asset which is security. reorganization
    Outcome The reorganization plan will be approved and the hotel keeps operating as a going concern. going concern
    Time (in years) The reorganization procedure will approximately take 1.5 years in total. After Mirage's petition to initiate reorganization, it takes around 4 months for the court to review the case, proceed with inquiries to relevant parties to examine the grounds for business reorganization, order the beginning of the reorganization proceeding and appoint an official receiver overseeing the entire process. Pursuant to Section 90/17, the Court would appoint the person who is nominated by Mirage as the plan preparer if suitable, which could take approximate 3 months. Creditors may file an application for repayment of debts for business reorganization within one month after the order of appointment of the plan preparer is published under Section 90/26. As specified in Section 90/43, within 3 months after the appointment, the plan preparer is required to submit the reorganization plan to the official receiver and creditors. In practice it will take around 1 years to prepare the creditor list, draft and vote the plan taking consideration of all possible objections and corresponding amendments to the plan. After the reorganization plan is approved by creditors and verified by the court, the implementation of the plan may take additional 6 months or more until BizBank is repaid some or all of the money owed to it. 1.5
    Cost (% of estate) The costs associated with the case would amount to approximately 18%. Cost incurred during the entire insolvency process mainly include lawyer fees (7%), the fees of the insolvency representative (plan preparer) (5%), other professionals involved, such as accountants and financial advisors (5%) and court fees (1%). 18.0
    Answer Score
    Strength of insolvency framework index (0-16) 13.0
    Commencement of proceedings index (0-3) 2.5
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (c) Debtor may file for reorganization only 0.5
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor may file for both liquidation and reorganization 1.0
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature 1.0
    Management of debtor's assets index (0-6) 5.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (b) Yes over ordinary unsecured creditors but not over secured creditors 1.0
    Reorganization proceedings index (0-3) 2.5
    Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? Yes 1.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? Yes 1.0
    Creditor participation index (0-4) 3.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? Yes 1.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? No 0.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.