Thailand Corporate Services- Company Registration
- Contract Review
- International & Local Contract Drafting
- Liquidation & Dissolution
- Labor Compliance
- Thailand Board of Investment
- Company Registration/ Work Permits/ Visas
Business Organization, Formation & Structure
Sole Proprietorship is a business owned by a sole natiuural person whose liability is unlimited. A sole proprietor can engage in virtually any lawful business, unless there is a special law to the contrary. Generally, a sole proprietor may not engage in finance or insurance business these are restrict to limited companies.
Ordinary (unregistered) Partnerships consist of two or more persons who join together for a business purpose. Although an ordinary partnership may include a company as a partner, such partnerships are referred as “joint ventures.” The Foreign Business Act limits the use of the ordinary partnership business organization for foreigners.
Registered ordinary partnerships (ROP) form of business organization requires that the partnership contract, including the details of capital contributions, management and objects be in writing and registered with the Ministry of Commerce.
Limited Partnerships (LP) is a form of registered partnership in which there are one or more managing partners who manage the business and who are personally liable for the partnership’s debts, and one or more partners who are not normally personally liable for the partnership’s debts, except for their undelivered or withdrawn capital contributions. The partnership agreement is filed with the Ministry of Commerce in the same manner as a registered ordinary partnership.
Private limited companies form of business organization is most popular with foreigners because there is flexibility, especially in joint venture situations, in formulating how the company may be controlled and managed.
The United States – Thailand Treaty of Amity: Under this Treaty, American and Thai citizens and corporations are granted special preferential rights concerning ownership of businesses in each other’s countries. Since the United States allows Thai citizens and companies to have majority Thai ownership of an American company, Thailand in return grants American citizens and companies the right to have majority ownership of a Thai company. The Treaty does NOT confer any special rights in relation to ownership of land in Thailand.
Work permits are required of all foreigners wishing to work in Thailand. Non-immigrant B visa is common for the business travelers and required for work permits. Non-immigrant visas are normally for 1 year and may be extended.