Private limited company vs limited liability partnership

[BKKTRAVELER]

Hi all, 

 

Could you please explain to me the differences between a PLC and an LLP here in Thailand? About the business structure, banking, taxes, shareholders requirements and anything else.

 

But most importantly, which one would or did you choose and why?

 

Thank you very much for anyone who would take the time to help!

[LukKrueng]

On 3/5/2021 at 11:34 AM, BKKTRAVELER said:

Hi all, 

 

Could you please explain to me the differences between a PLC and an LLP here in Thailand? About the business structure, banking, taxes, shareholders requirements and anything else.

 

But most importantly, which one would or did you choose and why?

 

Thank you very much for anyone who would take the time to help!

I don't think banking and tax are any different.  AFAIK for partnership you need only 2 partners whereas limited company must have a minimum of 3 share holders. 

The main difference is that in a limited partnership only 1 partner has a limited liability and other partners are not protected. A limited company is a juristic person and therefore an independent legal entity. Each share holder is liable only to his own part of the company, so basically as soon as you fully paid for your shares nothing else will come out of your pocket in case of a claim against the company

[khunPer]

On 3/5/2021 at 5:34 AM, BKKTRAVELER said:

Could you please explain to me the differences between a PLC and an LLP here in Thailand?

You write "Private limited company vs limited liability partnership" in your headline, but PLC means "Public Limited Company", in Thailand it's however called "Pcl" for "Public Company Limited", which is a company listed on a stock exchange.

 

You probably think of "Co. Ltd.", i.e. Company Limited, which is a normal limited company where the stocks can be held by private persons, or juristic persons; in Thailand minimum three shareholders of which foreign shareholders cannot own more than 49 percent of the registered shareholder capital.

 

Limited Partnership is "a partnership where there are one or more partners whose liability is limited to such amount as they may respectively undertake to contribute to the partnership, as well as one or more partners who are jointly and unlimitedly liable for all the obligations of the partnership." Foreigners cannot own more than 49 percent of the partnership.

 

Is you are a US citizen you can however own more than 49 percent of a company in Thailand under The U.S.-Thai Treaty of Amity, se for example more HERE.

[BKKTRAVELER]

Thank you both for your answers, it gave me a lot to think about

[KKr]

https://thailawonline.com/en/business/thai-company/starting-a-thai-company.html# has good information, as well as samuiforsale, albeit the latter is down today.

[BKKTRAVELER]

13 hours ago, KKr said:

https://thailawonline.com/en/business/thai-company/starting-a-thai-company.html# has good information, as well as samuiforsale, albeit the latter is down today.

Thank you, I appreciate it