Business structure in Thailand
Incorporating a foreign company
A foreign company can be set up in Thailand in the following forms
Its work must only be handling the interests of the company or its subsidiaries. It is not allowed to do business or perform any transactions which entail earnings.
This is only applicable for certain highly specific cases. The parent company takes on all the branch’s obligations. It is more complicated to run than a limited company or PLC:
Incorporating a Thailand company
There are three types of business companies:
A single person company with the sole shareholder’s assets being liable.
Made up of several partners. The liability may be unlimited or limited.
Limited liability company:
The partners’ liability is limited to the capital invested. This is the form most widely used in Thailand and the one preferred for a foreign investment. It requires at least three shareholders. The commonest form is the joint venture. This requires a Thai partner and must be incorporated for a specific project. It does not have a legal personality other than that of its partners.