Changing Your Business Structure in Thailand
Updated on Tuesday 20th December 2016
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After many years of certain activities, numerous foreign investors choose to change the business structure once the interests have developed and encountered other visions. A company in Thailand can change its structure at any time, considering the rules and the regulations stipulated in the Thai Company Act. Our Thai lawyers can offer legal assistance and suitable information for all entrepreneurs who wish to change the business structure.
How to change the sole proprietorship into a LLC in Thailand
As a sole trader in Thailand, an individual has 100% benefits and control, in other words, the business and the person are the same entity. But if plans have changed and different activities have developed, it is time to change the business structure. The limited liability company can be created quite fast, without having to change the way you run the business in Thailand. There are certain conditions to consider when changing the sole partnership into a Thai limited liability company, such as:
• the new business name and the address (if changed too) need to be mentioned at the Trade Register in Thailand;
• the minimum share capital is THB 2,000,000 and needs to be provided when registering the new company;
• the new activities and the purposes must be mentioned in the documents;
• the names of the shareholders need to be provided when changing the business structure;
• apply for the necessary licenses and permit for your new business.
The entire process may take up to one month, but it is good to know that you can ask for help and legal assistance from our lawyers in Thailand who can ease and speed up the registration procedures with the Thai Ministry of Commerce and the related bodies.
Why change the business structure in Thailand?
A limited liability company in Thailand will offer more personal protection for all businessmen who choose this type of legal structure. Besides that, the profits will rise and chances to develop even more are quite big, especially on the Thai market where the business environment is attractive. But before you change the business structure in Thailand, make sure to solicit details and additional information about the new taxes, assets protection and responsibilities related to the new company.
You are invited to get in touch with our Thai law firm if you want guidance when changing the business structure in Thailand.