Company Due Diligence in Thailand

Updated on Monday 05th September 2016

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The company due diligence procedure in Thailand is recommended to business people who intend to purchase an already existing company on the market or to merge with a such company.

The company due diligence procedure in Thailand represents a detailed analysis on an already existing company on the market that an attorney undertakes on behalf of a client interested to purchase it or to merge with it. The company due dilicence procedure is highly recommended by our lawyers in Thailand, as it can protect you from any future problems.

Company due diligence activities in Thailand

Foreign investors who acquire an already operating business face certain risks which can be avoided if a lawyer in Thailand effectuates the accurate company due diligence procedure for them.

Here are a few company due diligence activities in Thailand we can perform:

•    Researching if the company has any outstanding liabilities, like taxes, rent, salaries, or other expenses related to them;
•    Researching whether the business has acquitted its account obligations in Thailand, like monthly accounts and half year or full year balance sheets;
•    Researching if the company is opened appropriately and if there are any changes that might be required in its organization;
•    Researching if the rights of the business claim are legal and valid.

The data room in Thailand

Until a purchase contract is actually signed, the buyer may well be considered a competitor. In order to solve the conflict between protecting the seller’s information and the buyer’s interest, the documentation requested by the buyer for the due diligence are stocked in a data room, which currently is a virtual one, online. In order to perform a proper company due diligence in Thailand, the foreign investor who intends to buy the business can expect the following information to be offered by the seller:

•    Company setting up and previous share transfer instruments;
•    Trade contracts and main assets;
•    Company documents consisting of shareholders meetings, managers resolutions and so on;
•    Leases and other contracts;
•    Investment promotion by the Board of Investment (BOI) of Thailand;
•    Human resources;
•    Financial statements;
•    Licenses;
•    Taxes;
•    Other documents. 

We invite you to contact our Thai lawyers for a consultation in regards to effectuating a company due diligence in Thailand