Commercial Law in Thailand
Updated on Wednesday 12th October 2016
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Thai companies need to be created according to the Commercial Law or the Commercial Code in the country. There are three major types of businesses in Thailand, such as limited companies, unregistered ordinary partnerships, and limited partnerships. No matter the type of company you choose to set up, it is recommended to solicit help and legal assistance from our Thai lawyers.
Types of companies according to the Commercial Law in Thailand
A limited liability company in Thailand (LLC) is created with the divided capital into shares, and can also be separated into public companies and private limited companies. The private limited companies are controlled by the Commercial Code in Thailand and can be described as companies which limited the accountability of the shareholders who can be overseas businessmen owning all the shares.You should take into consideration that certain types of private limited companies cannot be owned 100% by immigrants, according to the Foreign Business Act in Thailand. The public limited companies in Thailand can be created with special requirements regarding the number of stockholders and the minimum share capital.
The sole proprietorship is the type of business in Thailand owned by a single person who has the entire control of the assets. This kind of business entity has a trade name, wich can be registered as a trademark, the person in charge having the responsibility to pay the company’s obligations. As a reminder, a company must be registered at the Registration Office in the city where the business will operate. Regarding the ordinary partnerships in Thailand, it is good to know that is the type of partnership where all partners are equally and fully responsible for all the business requirements. The Thailand lawyers can provide you with information and guidance regarding the Commercial Law in the country.
What you need to know about the company registration process in Thailand
If you wish to register your company in Thailand you must obtain approval for the memorandum of association, reserve a company name, obtain a corporate seal, register for VAT, make the payments for the enterprise registration and open a bank account, in order to deposit the capital for your company. There are certain taxes that need to be paid when opening a business in Thailand, and it is good to know that the country has signed numerous double taxation agreements.
Our Thai law firm can offer all the needed information about the Commercial Civil Code in Thailand, so please feel free to contact us.