Open Up Ltd Company

[Polemi]

We are looking into open up a Ltd company. We have found a lot of good info on this forum but cant find the answer to one question we have.

Does the money you have to invest in the company as shares (cant remember exactly how much it is) have to stay on an account in the bank or can it be used in the company as investments etc?

[beechguy]

Depends on certain factors, but often 2 million Baht. It can be used, it does not have to stay in the bank

[jamescollister]

No expert in the field, but set up a limited partnership, with the wife. No real money in the bank, but factory and land were the assets.

Just left it to the accountant, thats what he's paid for. Jim

[Sunbelt Asia]

The capital or shareholder’s equities are not just limited to cash. It can be any form of assets such as furniture and fixture, equipments, land and building space and the like. By law, the minimum paid-up capital is 25% and it must be remitted to the company shortly after the company has been formed. As a starting capital, it is highly recommended that the 25% be in the form of cash. You may operate the company in its regular course and use these funds to purchase equipments, pay for rent and utilities etc. In other words, it does not have to stay in the bank account throughout the course of the business. The shareholders can even vote to loan the funds out to the Director or other party.

[sunbeltlegal][/sunbeltlegal]

[bkkjames]

A question to investors if I may.

What return would you be looking for to loan seed money to meet the paid up capital requirement_meaning the money would be kept in the bank and not touched for the operation of the biz. A yearly percentage interest? A percentage of profits/company?

Thinking of establishing a biz with my mrs (she 51 percent).

Thanks for your suggestions/ideas/thoughts.

[lazygourmet]

Another question, as well... and sorry to hijack your thread:

Is it possible to include "knowhow" as an asset within a Thai LTD?

And if it is doable, who is going to give it a monetary value?

[raro]

Another question, as well... and sorry to hijack your thread:

Is it possible to include "knowhow" as an asset within a Thai LTD?

And if it is doable, who is going to give it a monetary value?

yes, it is possible, but will be quite difficult. We tried it when we set up ours and gave up on it.

As for the loan, that depends on the agreement between the lender and the borrower. There is a minimum required by law, not sure about the details.