Thai laws clearly categorize companies into a Limited company, Sole proprietorship and partnership. Some of these businesses model what is obtainable in the United States while some are different. For example sole proprietorship in both countries are just like partnerships. Limited companies in this instance emerge when capital and liabilities are equally held by the shareholders who own the companies, that is, your capital determines your liability.
The ministry of commerce already has an explicitly stated procedure for establishing businesses in Thailand and the companies to be established must adhere religiously to these stipulations. In the three categories identified, establishing limited companies is the most popular in Thailand.
The most basic requirement can be fulfilled by at least three persons with a start-up capital of three million baht while the minimum requirement for foreign companies is two million baht.
To establish a company, you should first identify your promoters. The specifications for a private company differ from that of a public company. For private companies, the minimum promoters required are three at least while that of public companies should be fifteen promoters at the least. Being a promoter also requires meeting certain requirements. A promoter is required to be at least twenty one years at the time of the registration to be permitted to legally act on behalf of the company. They hold equal shares of the company but after company registration the promoters’ shares may be transferred to others.
Once there is a record with the ministry of commerce, companies proceed to register the association’s memorandum. This memorandum usually contains details such as company name, finances, promoters name, company address, objectives etc. During the registration of memorandum, the company is also expected to pay all shares. Foreign business in Thailand must have received the approval of a cabinet. By-laws and articles of incorporation must also be submitted. Business in Thailand is too attractive to ignore.
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