Thailand has great prospective for doing business and many people from different parts of the world visit here with the intention of doing business. If you are also planning to set up a business or open up a new company over here, first, we suggest you to contact a law firm and consult Thai lawyers in this regard. There are laws and requirements that you must understand and know before setting up your business in Thailand. Different types of business calls for different legal activities. Here are few examples.
If you want to operate as the owner without any partners, then it will be a sole proprietorship business. However, the foreigners living in Thailand are generally not allowed to run a sole proprietary business, except for the US citizen who is permitted to run such business as per the US-Thai Treaty of Amity.
Two or more people can start a business association with a certain agreement of sharing profits and losses. In Thailand, there are unregistered partnerships and registered partnerships. In case of unregistered partnerships, all the partners are liable for the obligations of the association no matter when they entered the business. Thai Law does not consider such partnership as a juristic person and therefore, the firm is subjected to tax as a natural person. Registered Thai Ordinary Partnership makes all the partners liable for all the commitments. Thai corporate tax is required to be paid and such business is recognized as a legal body in Thailand.
Private and public limited company
To register a private limited company in Thailand, the documents of the Articles of Association and the Memorandum of Association are to be registered with the Thai Ministry of Commerce. According to the requirements of the company, the Articles of Association can be adjusted if the promoters and shareholders do not have any problem.
The process of setting up and registering a public limited company is similar to that of a private limited company in Thailand. In fact, a private limited company can be converted into a public limited company as per the Public Limited Companies Act in Thailand. However, the public limited companies can sell their shares to the public, which is restricted for the private limited companies in Thailand.
There is no clear definition of joint venture company in the Thai law except the Thai tax code. Joint ventures are treated as agreements that are excluded of tax certificates or licenses.
It is quite common that a company has its head office in a foreign country and wants to open a branch in Thailand. According to Thai law, the branch office of the company in Thailand will enjoy the legal rights. Applications must be made to the Ministry of Commerce in Thailand for company registration of the branch office.
Apart from the above, there are other forms of associations in Thailand. If you want to know more about them or want to get assisted with your company registration in Thailand, contact our law firm.