What's really the difference between small business types?

[Josasp]

So, from what I understand there are:

• Ordinary Partnership (unregistered)
• Ordinary Partnership
• Limited Partnership
• Limited Company

What's the difference between a registered parternership and unreg?
Pros and cons with registering?

Isn't an uregistered partnership just like two people making money without any paperwork needed?

Then why does it have to be registered? What's the advantage of registering?

What's the advantage of a Limited Partnership over a Ordinary Partnership registered?


Limited Company is expensive to set up, and I think not needed when there is small capital involved. Say about 500,000฿/y.

Thankfull for any clarity on this, as I don't see why a company is needed really if you're not needing a VAT number. Then why not just run a "business" as a individual?

[mickj88]

It all seems a bit of a minefield to me.

My wife and I are thinking of leaving the UK in the next 12 months and heading out to LOS .

She wants us to go up to the village in Issaan and farm but that would make it difficult for me to work .

I would like to purchase a guesthouse or bike rental or other business and run that .

I am thinking down that avenue as I have read that regardless of what business we go into and also be it a ltd co or partnership for me to get a work permit we will need 4Tthai employees , maybe 3 if the wife is included as a Thai employee

From what I understand I can own 49% of a ltd co but only 30% of a Thai partnership and also in a Partnership cant have a business bank account under my control( although only having 49% of a ltd co with 1Thai would be the same).

The upside of a partnership if setting up from scratch is that it only requires 1m baht investment but the ltd co requires 2m baht.

As we will only have around 2.5m baht to invest my preference may not work and I will just have to not work .

I will be applying for the marriage visa so I will have the required funds in place for that and then looking at our options .

[innerspace]

Since you are writing in English I guess not Thai and only one option available unless American.

Since you are asking this question I presume not experienced with running a business anywhere in the world. Be careful, you can lose big money easier than make anything!

But in answer... partnership is exactly how it sounds. A partnership between individuals with both in equal control and risk.

A company has shareholders and rules that it must follow, generally better option.

Limited refers to maximum liability. If a partnership gets into 1 billion of debt, both partners are fully liable. If limited then only liable up to the registered capital amount. Partners/shareholders only personally liable up to the amount of unpaid shares.

You have also missed out sole trader, again can be registered or not, registered means formally documented and recognised, unregistered cant claim anything.

Disclaimer...some of what I have stated is based on generic global not Thai business type knowledge, I know Thai company details in much more detail than partnerships since I am not elligable for the latter.

[Josasp]

Since you are writing in English I guess not Thai and only one option available unless American.

Since you are asking this question I presume not experienced with running a business anywhere in the world. Be careful, you can lose big money easier than make anything!

But in answer... partnership is exactly how it sounds. A partnership between individuals with both in equal control and risk.

A company has shareholders and rules that it must follow, generally better option.

Limited refers to maximum liability. If a partnership gets into 1 billion of debt, both partners are fully liable. If limited then only liable up to the registered capital amount. Partners/shareholders only personally liable up to the amount of unpaid shares.

You have also missed out sole trader, again can be registered or not, registered means formally documented and recognised, unregistered cant claim anything.

Disclaimer...some of what I have stated is based on generic global not Thai business type knowledge, I know Thai company details in much more detail than partnerships since I am not elligable for the latter.

Yes, not Thai.

I do know how different company structures work, just not in Thailand.

In Sweden we have slightly similar types, but none are the same.

I understand liability, I just don't get what other advantages/disadvantages there are between these.

Information online in Thailand is scarce, as always.

I'm thinking of difference in terms of taxation, accounting requirements, foregin owership etc.