2 million baht capital private ltd company

[journey123]

I am planning to set up a company in the service sector with my Thai partner and am looking at various franchises.

 

Am I correct in thinking the 2 million baht capital required to setup a private ltd company is the total capital needed that is split between the shareholders?

Eg.          Foreign shareholder 49% cash invested 980,000 baht

                Thai shareholders 51% cash invested 1,020,000 baht

 

Or is the 2 million the total amount needed from the foreign investor therefore requiring the Thai investor to have 2 million also?

 

I have read that 100% of capital must be shown on accounts as paid up at the end of the first year. I have also seen advertised at various law firms dormant shelf companies with no trading history and claiming the full 2 million baht already showing on accounts as paid up.

 

If I purchased one of these does that mean I would not have to pay in the total capital as it already shows it being done previously?

 

I am tempted to go down this road but would like to know if this is 100% legal in Thai law or could it lead to future problems?

 

How can I guarantee there is no bad history associated with these shelf companies?

 

What would the expected charge be to purchase a dormant shelf company?

[Sunbelt Asia]

You are correct in thinking that the 2 million baht in registered capital is the total and not 2 million from the foreign investor. As for acquiring a dormant (shell) company does not mean that the shares of the company had previously been paid up.  You will have to look at the shareholders list and the company’s financial statement.

 

It will be very difficult to tell whether the company has any historical lawsuit, or if it will be facing a future lawsuit.  Lawsuits can derive from an unpaid bill (suppliers or utility bills). There is no guarantee that you'd be acquiring a "clean" company.

 

The price for acquiring of a shell company would depend on the owner and the agent who is brokering this company. 

 

[sunbeltlegal][/sunbeltlegal]