Corporate Law in Thailand
Updated on Tuesday 22nd March 2016
Rate this article 2 reviewsbased on
Local and foreign investors who are interested in the business environment available in Thailand and who want to establish a company here should be familiar with the provisions of the Commercial law, which stipulates the way in which a business can be carried out here. Our team of attorneys in Thailand can offer legal advice on the legislation applicable to both local and foreign companies operating on the Thai market.
Provisions of the Thai Commercial Code
Businessmen who want to open a company in Thailand should respect the provisions of the Commercial Code, which provides the statutory framework of business activities; the Commercial Code refers to all aspects of a business, from its incorporation, to its activity and to the way in which the liquidation process should take place, if it may be the case.
According to the Chapter II of the Civil and Commercial Code, a legal entity in Thailand will have a set of rights and obligations as prescribed by the above mentioned Act; the domicile of a legal entity is considered to be the place where the principal office is situated.
In the situation in which a company in Thailand is opened through a branch office, then this place can be considered its domicile, as well.
The Section 74 of the Code specifies that if the company is represented in Thailand by an appointee, the person is required to represent the interests of the legal entity on the Thai territory; our Thai law office can offer you more details on this subject.
Provisions related to the limited companies in Thailand
According to the Chapter IV of the Code, a limited company is the one in which the capital of the business is comprised of divided shares; an important aspect related to this legal entity is that the liability of the shareholders is limited to shares they own in the company. The provisions of the Code establish the way in which the Memorandum of the business has to be drafted and deposited; our team of attorneys can assist you with the drafting of this basic document and can help you register it at the local Registration Office.
If you need further information on the corporate law in Thailand, please contact our team of Thai attorneys for legal assistance on this matter.