Establishing a company limited in Thailand requires registration with the Department of Business Development
Establishing a business requires registration with the Department of Business Development.
Can be divided into 2 types as follows;
The Ordinary partnership is a business which all the partners, by a minimum if two persons, are jointly and unlimitedly liable for all the partnership’s obligations.
The ordinary partnership shall register as the juristic person or not. Therefore, the ordinary partnership can be divided into 2 types as follows,
The Limited partnership is similar to an Ordinary partnership but requires registration and the partner can be provided to 2 types as follows
Establishing a company limited in Thailand requires registration with the Department of Business Development (DBD).
To establish the Company limited, you must have at least 3 promoters joint together, in order to gather capital with divided into equal shares. The liability of the shareholders being limited to the amount unpaid on the shares respectively held by them.
There two potential ways to structure a Thai company limited as follows;
Thai owned company limited is considered anything a company whose shareholders hold 51 % or more of the shares of the company. A common practice in Thailand has been for a Thai person to hold 51 % of the shares and foreigner to hold 49 %. However, the shares owned by the Thai person would be categorized as preferential shares so that the shares have minimal to no voting or dividend rights. This 51% /49% structure effectively gives 100% control to the foreign shareholder(s) and avoids the applications of the Thailand Foreign Business Act, which basically restricts foreign owned companies from performing service type businesses without a first obtaining a license from the Department of Business Development.
Foreign owned Thai company limited is generally required to first obtain a license to operate with the Department of Business Development before commencing operations.
Applying for a foreign business license from the Department of Business Development can be costly, time consuming and risky due to legal fees involved and government bureaucracy.
Representation office (RO)
Representative office is an office established by a company or a legal entity to conduct marketing and other non-transactional operations, generally in a foreign country where a branch office or subsidiary is not warranted.
The Representative of a foreign company is not subject to income tax provided that the services rendered by the representative are only provided to and for use by its head office.
A representative office in Thailand must be registered with the Department of Business Development as such and is restricted to the following types of activities;