Company Types

[sheldon]

Hi,

I am just wondering about the different company types in Thailand.

I see some Limited, and some Limited Part.

What's the difference, and where can I get more information about these ?

Thanks

[Sumitr Man]

I suggest you take a read of this: http://www.boi.go.th/english/how/setting_up_a_business.asp

What You Need to Know About Setting up a Business in Thailand

The following is an overview of establishing a business in Thailand.

As in most countries, there are three kinds of business organizations in Thailand: Sole proprietorships, partnerships, and limited companies. The most popular form of business organization among foreign investors is the private limited company.

Private limited companies require a minimum of seven promoters and must file a memorandum of association, convene a statutory meeting, register the company, and obtain a company income tax identity card. They must also follow accounting procedures specified in the Civil and Commercial code,the Revenue Code and the Accounts Act. A balance sheet must be prepared once a year and filed with the Department of Revenue and Commercial Registration. In addition, companies are required to withhold income tax from the salary of all regular employees.

The Ministry of Industry administers The Factory Act, which governs factory construction and operation, as well as safety and pollution-control requirements. In some cases, factories do not require licenses, in other instances the requirement is simply to notify officials in advance of start-up, and in some cases licenses are required prior to commencing operations. Licenses are valid for five years, and are renewable.

Thailand recognizes three kinds of intellectual property rights: patents, trademarks, and copyrights.

The Patent Act protects both inventions and product designs and pharmaceuticals.The Copyright Act protects literary, artistic works, and performance rights, by making it unlawful to reproduce or publish such works without the owner's permission. The Trademark Act governs registration of, and provides protection for, trademarks.

The Alien Occupation Law requires all foreigners working in Thailand to obtain a Work Permit prior to starting work in the Kingdom, except when they are applying under the Investment Promotion Law, in which case they have 30 days to apply.

Non-Immigrant visas provide the holder with eligibility to apply for a work permit, and allow the holder to work while the work permit application is being considered.

Through the links below, you can learn more about topics such as industrial licensing, taxation, patents and trademarks , and the cost of doing business in Thailand. You can also find out about the status of Thai infrastructure, including facilities such as airports, deep sea ports, and highways, and the availability of power, water and telecommunications.

In addition, there is a link to a page of statistics, which displays tables of utility, communications and labor costs, tax rates, information about air, sea, rail and road freight pricing, and information about availability and cost of land within industrial estates. Other charts and tables provide costs of establishing and running an office in Bangkok, and the results of a survey of expatriate living costs in Bangkok.

This page also contains information about industrial production of selected products in Thailand, tables breaking down Thai imports and exports by product and a table displaying interest rate movements for the past 5 years.

By the time you have finished visiting all these pages, you will have a complete picture about the business climate in Thailand. 

You should also familarize yourself with the rest of the site - it really is excellent work by the Thai government.

[lukamar]

Good link Sumitr Man..

Does anyone know if a non Thai and a Thai national can form a partnership? And can you get a work permit on this type of business if you can form it?

Lukamar

[crystaldive]

Opening a partnership with a Thai - Non-Thai (51%-49%, naturally) is easy, I've just set up a partnership with my wife having now settled here full time.

Find yourself a good lawyer in your home town (where the business will be based) and he will have to do all the paperwork for you. The paperwork will initially consist of a letter of declaration for you to go out of the country and get a Non-Imm 'B' visa which you need to apply for your work permit.

When you get back, more than likely you'll have a 90 day visa, plenty of time to organise the paperwork for the permit. The lawyer will need to know the nature of your business, office address, and you'll need a logo. The pain-in-the-ass bit is that it needs to be in Thai and English.

You don't need any capital at all for a limited partnership, despite what Sunbelt Asia keeps crapping on about on this forum (George, check your contacts' facts mate!) How Mr.Greg Lange(Sunbelt) is getting away with this is beyond me...

2 Million BAHT my arse!

Anyway, enough of that! The fee for the work permit is 3,000 BAHT, the first non imm 'B' is 2,000 BAHT. When you get you permit, it's back out after the 90 days and back in with a 12 month multi-entry. - Lovely Jubbly!

With the lawyers bit on top, grand total of 18,000 BAHT. DONE!

Anything I've missed, the lawyer you get will be able to fill you in on the minor details......GOOD LUCK!