Thai business act: 'One person, one firm' mulled

[webfact]

BUSINESS ACT
'One person, one firm' mulled
Petchanet Pratruangkrai
The Nation

BANGKOK: -- The Business Development Department plans to propose a law allowing a single person to establish a new company.

Currently, Thai law requires each company to have at least two partners for a partner company limited and at least three for a limited company.

The department's director-general Pongpun Gearaviriyapun said yesterday that the new law should be able to help reduce costs and time and prevent disputes, as a single individual would be able to set up his or her own company.

Twelve countries already have such a "one person, one company" law. They are the United Kingdom, the United States, China, Singapore, Vietnam, Germany, Canada, the Netherlands, Italy, New Zealand, India and Japan. If Thailand adopts this law, it will be the 13th in the world to do so, and the third in Asean. Malaysia is also looking into adopting a similar law.

Pongpun said that if this law could be enacted, many small businesses would be able to save costs and time while avoiding complex registration procedures, as only one person could manage the process. The law should also reduce internal disputes.

Pongpun said that if this law could be enacted, many small businesses would be able to save costs and time while avoiding complex registration procedures, as only one person could manage the process. The law should also reduce internal disputes.

Chulalongkorn University has been commissioned to study the potential of this type of law, and Pongpun said all of the enterprises contacted by the university had agreed with the idea and were looking forward to a bill.

After the public hearing process, the department is expected to propose the draft act for consideration by the commerce minister and the Cabinet next month. It hopes the Cabinet will fast-track the ratification process so that it can become law next year.

After its implementation, Pongpun projects that there will be more companies registered in Thailand, because enterprises currently outside the system will be encouraged to register.

Within two years of the implementation of this bill, the number of registered companies is expected to double from 620,000 to 1.4 million, she added.

According to the draft, an individual would be able to set up only one company. However, that person could still own a separate company.

Source: http://www.nationmultimedia.com/business/One-person-one-firm-mulled-30272814.html


-- The Nation 2015-11-13

[englishoak]

One way to get sole traders into the tax fold.

Bet they wont do,just talk about it.

[ezzra]

Any good changes to the outdated, archaic and convoluted business company laws is well come......

[jonclark]

I wonder if there is an unreported caveat to this? Along the lines of ..."one person, one firm [provided that person is Thai]".

[chainarong]

I wonder if there is an unreported caveat to this? Along the lines of ..."one person, one firm [provided that person is Thai]".

One would assume that this is for Thai's only , I'd be very surprised if a farang could become a sole trader, next you could even own land, heaven forbid.

[Jeremy50]

There's that word again. Mull away chaps.

[simon43]

I wonder if there is an unreported caveat to this? Along the lines of ..."one person, one firm [provided that person is Thai]"

Or USA citizen

[oztaurus]

... and Australia.

Last 2 companies i registered there only took 1 person, and the 2nd one was done online, took 10 minutes and $467.

Of course with 4G, Thailand will become the worldwide hub of the digital economy and everyone will be able to register companies online here too.

Edited November 13, 2015 by oztaurus

[madmitch]

Can anyone tell me one good reason why a sole trader would register as a company IN THAILAND?

Personal income tax, corporation tax, accountants' bills, report and accounts, providing up to date company documents for everything, and general red tape are all good reasons not to do it.

[onthemoon]

... and Cambodia. I (as a non-ASEAN foreigner) am the sole owner of my Co., Ltd. there.

[soomak]

"

Twelve countries already have such a "one person, one company" law. They are the United Kingdom, the United States, China, Singapore, Vietnam, Germany, Canada, the Netherlands, Italy,

New Zealand, India and Japan.

If Thailand adopts this law, it will be the 13th in the world to do so, and the third in Asean. Malaysia is also looking into adopting a similar law.

"

Australia, Spain, Israel, New Zealand, Denmark, Brunei, BVI, Bahamas and Seychelles also allow one shareholder companies as well.

I suspect there are many more countries, as this became quite a standard for modern business laws.

Edited November 13, 2015 by soomak

[Time Traveller]

Can anyone tell me one good reason why a sole trader would register as a company IN THAILAND?

Personal income tax, corporation tax, accountants' bills, report and accounts, providing up to date company documents for everything, and general red tape are all good reasons not to do it.

Get sued and losing all of your personal wealth because you thought being a sole trader was cheaper than incorporating is the only reason you need to know why it's a good idea to register as a company.

And BTW in the US, the LLC companies basically are just "pass through" entities that you add to your personal income tax return and don't require the additional tax work like in you mentioned.

Edited November 13, 2015 by Time Traveller

[bluebluewater]

12 of the most sophisticated countries in the world for doing business all do this and have laws in place in how to do so these guys are going to try to "reinvent the wheel" . . again.

[HOAX]

"

Twelve countries already have such a "one person, one company" law. They are the United Kingdom, the United States, China, Singapore, Vietnam, Germany, Canada, the Netherlands, Italy,

New Zealand, India and Japan.

If Thailand adopts this law, it will be the 13th in the world to do so, and the third in Asean. Malaysia is also looking into adopting a similar law.

"

Australia, Spain, Israel, New Zealand, Denmark, Brunei, BVI, Bahamas and Seychelles also allow one shareholder companies as well.

I suspect there are many more countries, as this became quite a standard for modern business laws.

Yeah, Norway too, having two options, first called "Enmannsforetak" (sole proprietorship) and Aksjeselskap/AS (Public Limited Company/Plc).

It`s actually common everywhere, in the western world at leased, but probably elsewhere also. Who haven`t heard of a sole owner/employee of a company? I bet almost everyone here at leased has a friend or friend of a friend who runs solo.

I think those/the who wrote the article got a bit excited and thought finally Thailand would become a leading country in something, but nope, it`s still just a lacking country, again, like it is with everything else here. I don`t know how many times I`ve seen Thais get excited over something `"new" coming to Thailand, while I scratch my head thinking, "isn`t that the same we have had for some decades?". I`m happy for them, but it`s so darn slow that it`s a real hairpuller sometimes, and not to mention quality and ethics in Thailand...

[soomak]

"

Twelve countries already have such a "one person, one company" law. They are the United Kingdom, the United States, China, Singapore, Vietnam, Germany, Canada, the Netherlands, Italy,

New Zealand, India and Japan.

If Thailand adopts this law, it will be the 13th in the world to do so, and the third in Asean. Malaysia is also looking into adopting a similar law.

"

Australia, Spain, Israel, New Zealand, Denmark, Brunei, BVI, Bahamas and Seychelles also allow one shareholder companies as well.

I suspect there are many more countries, as this became quite a standard for modern business laws.

Yeah, Norway too, having two options, first called "Enmannsforetak" (sole proprietorship) and Aksjeselskap/AS (Public Limited Company/Plc).

It`s actually common everywhere, in the western world at leased, but probably elsewhere also. Who haven`t heard of a sole owner/employee of a company? I bet almost everyone here at leased has a friend or friend of a friend who runs solo.

I think those/the who wrote the article got a bit excited and thought finally Thailand would become a leading country in something, but nope, it`s still just a lacking country, again, like it is with everything else here. I don`t know how many times I`ve seen Thais get excited over something `"new" coming to Thailand, while I scratch my head thinking, "isn`t that the same we have had for some decades?". I`m happy for them, but it`s so darn slow that it`s a real hairpuller sometimes, and not to mention quality and ethics in Thailand...

So add Norway to the list, and also Sweden, Finland, Estonia, Latvia and Lithuania. We are already at 27 countries, and I'm pretty sure there are at least 40 in total.

But in any case, its a positive change in the Thai laws, and I think we all support it.

Edited November 13, 2015 by soomak

[slapout]

I have no idea of the background, education or business history of the '' Director General''. But if the info and guess work for this article was supplied by him and quoted correctly by the newshound this is a real indication of how the Thai government has filled a position with its apparent normal job search method. "'Fill the position with someone dumber than those filling any position above /senior to him /her.""

[simon43]

Does anyone know what the status re 'one-man bang' limited company registration is for the other ASEAN countries?

[SABloke]

"

Twelve countries already have such a "one person, one company" law. They are the United Kingdom, the United States, China, Singapore, Vietnam, Germany, Canada, the Netherlands, Italy,

New Zealand, India and Japan.

If Thailand adopts this law, it will be the 13th in the world to do so, and the third in Asean. Malaysia is also looking into adopting a similar law.

"

Australia, Spain, Israel, New Zealand, Denmark, Brunei, BVI, Bahamas and Seychelles also allow one shareholder companies as well.

I suspect there are many more countries, as this became quite a standard for modern business laws.

Yeah, Norway too, having two options, first called "Enmannsforetak" (sole proprietorship) and Aksjeselskap/AS (Public Limited Company/Plc).

It`s actually common everywhere, in the western world at leased, but probably elsewhere also. Who haven`t heard of a sole owner/employee of a company? I bet almost everyone here at leased has a friend or friend of a friend who runs solo.

I think those/the who wrote the article got a bit excited and thought finally Thailand would become a leading country in something, but nope, it`s still just a lacking country, again, like it is with everything else here. I don`t know how many times I`ve seen Thais get excited over something `"new" coming to Thailand, while I scratch my head thinking, "isn`t that the same we have had for some decades?". I`m happy for them, but it`s so darn slow that it`s a real hairpuller sometimes, and not to mention quality and ethics in Thailand...

So add Norway to the list, and also Sweden, Finland, Estonia, Latvia and Lithuania. We are already at 27 countries, and I'm pretty sure there are at least 40 in total.

But in any case, its a positive change in the Thai laws, and I think we all support it.

Norway and Finland and Sweden are provinces of Scandinavia NOT countries. Similarly Estonia, Latvia and Lithuania are provinces of Europe. Duh!

[Thai at Heart]

Hooray. Extremely sensible

[bluebluewater]

Norway and Finland and Sweden are provinces of Scandinavia NOT countries. Similarly Estonia, Latvia and Lithuania are provinces of Europe. Duh!

Say what ?!?!?

Scandinavia is a historical and cultural-linguistic REGION that includes the Kingdoms of Norway, Sweden, and Denmark. They are indeed independent countries. Finland and Iceland are not normally included in the Scandinavian region but the five countries are considered as the Nordic countries.

[phoenixdoglover]

Would rather see..."we have submitted draft law to the NLA".

But I understand the perpetual need for a "trial balloon".

[SABloke]

Norway and Finland and Sweden are provinces of Scandinavia NOT countries. Similarly Estonia, Latvia and Lithuania are provinces of Europe. Duh!

Say what ?!?!?

Scandinavia is a historical and cultural-linguistic REGION that includes the Kingdoms of Norway, Sweden, and Denmark. They are indeed independent countries. Finland and Iceland are not normally included in the Scandinavian region but the five countries are considered as the Nordic countries.

I was being sarcastic i.e. the only way this buffoon could think only 12 countries had this law before Thailand was if he saw the world as I described it above.

[SABloke]

Norway and Finland and Sweden are provinces of Scandinavia NOT countries. Similarly Estonia, Latvia and Lithuania are provinces of Europe. Duh!

Say what ?!?!?

Scandinavia is a historical and cultural-linguistic REGION that includes the Kingdoms of Norway, Sweden, and Denmark. They are indeed independent countries. Finland and Iceland are not normally included in the Scandinavian region but the five countries are considered as the Nordic countries.

I was being sarcastic i.e. the only way the buffoon in the article could think only 12 countries had this law before Thailand was if he saw the world as I described it above.

[HerbalEd]

Can anyone tell me one good reason why a sole trader would register as a company IN THAILAND?

Personal income tax, corporation tax, accountants' bills, report and accounts, providing up to date company documents for everything, and general red tape are all good reasons not to do it.

In the case of foreigners, because they want to buy land or a house through their company.

[saakura]

Is this great news for all foreigners wanting to buy land here?

[Mudcrab]

Is this great news for all foreigners wanting to buy land here?

Foreigners can't buy land here...try to keep up.

All the dodgy company setups are illegal, no matter what some slimy salesman or poster here tries to tell you.

[impulse]

Without a well established rule of law and impartial judges and a functioning legal framework, limited liability protection for individually controlled businesses is a string of slow motion train wrecks waiting to happen.

Maybe it's a necessary step, but for every baht of benefit to the economy, I'm predicting 100 baht of pain and suffering.

This ain't Europe with hundreds of years of legal precedents, a well developed tort system and arms length judges.

[onthemoon]

Can anyone tell me one good reason why a sole trader would register as a company IN THAILAND?

Personal income tax, corporation tax, accountants' bills, report and accounts, providing up to date company documents for everything, and general red tape are all good reasons not to do it.

In the case of foreigners, because they want to buy land or a house through their company.

Definitely not. Because if the law changes so that a single person can open a company, the law that 51% of any company must be owned by Thai citizens won't change automatically.

Correct is that a sole trader is liable with his entire personal wealth, while the owner of a limited company is liable only with his investment.

[bangkoklawyer24]

Is this great news for all foreigners wanting to buy land here?

Maybe not great news but pretty good news, as explained <here> It is certainly much easier to control and dominate a Thai-wife-owned small company than the Thai wife herself.

Edited November 16, 2015 by bangkoklawyer24

[Artisi]

"

Twelve countries already have such a "one person, one company" law. They are the United Kingdom, the United States, China, Singapore, Vietnam, Germany, Canada, the Netherlands, Italy,

New Zealand, India and Japan.

If Thailand adopts this law, it will be the 13th in the world to do so, and the third in Asean. Malaysia is also looking into adopting a similar law.

"

Australia, Spain, Israel, New Zealand, Denmark, Brunei, BVI, Bahamas and Seychelles also allow one shareholder companies as well.

I suspect there are many more countries, as this became quite a standard for modern business laws.

Yeah, Norway too, having two options, first called "Enmannsforetak" (sole proprietorship) and Aksjeselskap/AS (Public Limited Company/Plc).

It`s actually common everywhere, in the western world at leased, but probably elsewhere also. Who haven`t heard of a sole owner/employee of a company? I bet almost everyone here at leased has a friend or friend of a friend who runs solo.

I think those/the who wrote the article got a bit excited and thought finally Thailand would become a leading country in something, but nope, it`s still just a lacking country, again, like it is with everything else here. I don`t know how many times I`ve seen Thais get excited over something `"new" coming to Thailand, while I scratch my head thinking, "isn`t that the same we have had for some decades?". I`m happy for them, but it`s so darn slow that it`s a real hairpuller sometimes, and not to mention quality and ethics in Thailand...

So add Norway to the list, and also Sweden, Finland, Estonia, Latvia and Lithuania. We are already at 27 countries, and I'm pretty sure there are at least 40 in total.

Self delete.

Edited November 16, 2015 by Artisi