Business structure in Thailand

Incorporating a foreign company

A foreign company can be set up in Thailand in the following forms

Representative office:
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.

Branch:
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:

Sole propietorship:

A single person company with the sole shareholder’s assets being liable.

Partnership:

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.