Thailand has various legal structures in place so that foreigners can undertake a range of business within the Kingdom. Upon understanding your business organization, International Business Consultants will advise you on the appropriate legal structure required to operate your business within the country.
There are three primary forms of commercial business organizations in Thailand that you will need to consider;
International Business Consultants would be pleased to discuss and explain the various partnerships possible and the legal and tax implications for each.
- Unregistered ordinary partnerships. Each partner is wholly and jointly liable for all obligations of the partnership.
- A registered ordinary partnership is a legal entity that allows separation and distinction for individual partners.
- Registered limited partnerships afford individual partners restricted liability to the amount of capital contributed to the partnership.
- Private Limited Companies allow shareholders to enjoy limited liability. A board of directors manages the limited company under the company’s Articles of Association and by-laws. There should be a maintained minimum of three shareholders at all times.
- Public Limited Companies registered in Thailand are subject to compliance. The company may apply to have their securities listed on the Stock Exchange of Thailand (SET). The Board of Directors must have a minimum of five members, and at least half of them must be Thai nationals.
Although not yet recognized as a legal entity under the Civil and Commercial Code the joint venture agreement may be described as a group of persons that form a general practice. Income is classified as a single entry and is subject to corporate taxation under the Revenue Code.
Formation of a Thai registered company or entity can be arranged through any lawyer but the intending investor is strongly advised to deal with one of the specialized law firms in Thailand, who is experienced in working with foreign clients.
It is essential that the company or entity be carefully formed to establish unambiguous control by the client over the Thai company/entity or the client’s investment could be at risk. If the company is properly formed, that risk could be removed and effective control can be established.
International Business Consultants would be very happy to assist those who are seeking to establish a Thai company or entity and walk you through all procedures involved for incorporation of a Thai company or entity. We are also would be pleased to offer you the management of your Thai entity to make sure that you fully comply with all the requirements for maintaining your entity.