Partnership Company-anyone Doing It?

[bembaman]

Are there any farangs on the forum trading in a partnership type scenario rather than a limited company? As I understand it a farang can participaste in a partnership. I am starting a business with my wife which is services based with little or no esposure to debt in an industry that traditionally trades as partnerships rather than as a company. I will be the 'driver' of the business although i will not be 'visible' in the business in the first year or two. I am curious about other people's experiences and recommendations, work permit or taxation issues. Another option would be to trade as a sole proprietor in my wife's name although that puts me at risk if I am identified as working in the business. I do have a work permit although not for this proposed business.

[croftrobin]

I too would be interested in details regarding this.

I read on a site about 18 months ago that this was possible - I can not find the site anymore!

There certainly is an option for a husband & wife combination - I am sure it was about 1 mill baht in business account etc but may be completely wrong!

There is plenty of info available for the ltd company option.

Any help anyone?

[Guest IT Manager]

We have several clients using the Limited Partnership option. It is actually simpler to set up. If the foreign member is an American it can be done under treaty of amity as well.

PM for specifics pursuant to individual situations.

[Sunbelt Asia]

I will be the 'driver' of the business

Limited Partnership

One or more partner's liability is limited to the amount of investment in the company and the other partner's liability is unlimited. A limited partnership is registered and becomes an independent legal entity.

In a limited partnership, the manager must be chosen from partners whose liability is unlimited and all of the limited liability in obligation partners are forbidden to interfere with all management of the partnership. If a limited liability in obligation partner interferes with the partnership management, such partner must become jointly and unlimitedly liable for all of the partnership’s obligations.

For foreigners, the manager must have Thai nationality and more than half of fund must come from Thai nationality person. The foreigner cannot be the sole signature on the account or power to bind the company unless you're American.

A Limited company then makes more sense if you're concerned about liability or not having control by having more voting rights than the 51% shareholder.

[sting02]

You forgot the capital registration issue :

The law states (at least it was that in January this year) :

The capital of a limited partnership is not necessarily constitued in money, but can also be but not limited to; ideas, concepts, customers ....

There is also an interest when you are not looking for a work permit, but just to run an SME legally.

[bembaman]

Sting,

Can you elaborate a bit on the WP point you were making-not sure what you are saying here.

Also, let us not forget there are other partnerships such as unregistered and registered (but not limited). Anyone got any views on those options?