Thai Company

[roadking95]

Hi all

Just doing some research into the setting up of a Thai Company and have noticed that it requires that the majority of the company to be held by nationals. It states that 5 out of the seven members of the company are to be Thai, how is achieved when first starting a new company. And by them having the majority this would cause issues with control of the company.

[Sunbelt Asia]

Hi all

Just doing some research into the setting up of a Thai Company and have noticed that it requires that the majority of the company to be held by nationals. It states that 5 out of the seven members of the company are to be Thai, how is achieved when first starting a new company. And by them having the majority this would cause issues with control of the company.

Where is this stated? It is misinformation. It is only one Thai national or company required, with most all Thai companies (some are not required to have any, as the foreigners are allowed to own 100% of the shares such as exporting, mfg or hotel mgmt)

As to control, this is being debated under the new government on preference/ ordinary shares which can give the Thais less voting rights. This may be changed in the future.

www.sunbeltasiagroup.com

[roadking95]

Thanks for the reply, I am starting to get a bit confused from the amount of articles I am reading regarding the company setup. One site said that you need to have one foreigner to five nationals or two foreigners to seven nationals. Now you are saying that you can own a 100% of certain businesses, does this apply to guesthouse and bars. I still have not been able to find an answer to the situation of how do you get nationals to be part of your company. I have owned and operated companies here in Australia, but we are talking a totally different structure system. I will have a look at your website to see if a answer is in there somewhere.

[Sunbelt Asia]

Thanks for the reply, I am starting to get a bit confused from the amount of articles I am reading regarding the company setup. One site said that you need to have one foreigner to five nationals or two foreigners to seven nationals.

Wrong info

Now you are saying that you can own a 100% of certain businesses, does this apply to guesthouse and bars.

No to guesthouse or bars at this time. (Exception however for Americans.)

I still have not been able to find an answer to the situation of how do you get nationals to be part of your company.

You have a Thai or American partner that owns 51% of the shares. As of right now, a foreigner can still have control, even if they are the minor partner.

www.sunbeltasiagroup.com

[roadking95]

I dont want to be a pain in the arse but I really need to know how people go about finding these other people to be part of the company. Coming from Australia I dont know anyone there, so its hard to have Thais as other members of the business, you just cant find them on the street.

[Martin_F]

I dont want to be a pain in the arse but I really need to know how people go about finding these other people to be part of the company. Coming from Australia I dont know anyone there, so its hard to have Thais as other members of the business, you just cant find them on the street.

Either you use family members if you are in a Thai family or you speak to your legal advisor for advise on forming a company and requirements and procedures for effective ownership and control. I would still recommend using a legal advisor if you are using family members becasue you will need the agreements to be in Thai and applicable to Thai law if you ever have problems and need to you use due legal process.

As as been mentioned earlier there is a certain amount of debate at the present time on the ordinary/preferred share ownership structure that has been used to leverage control.

Edited November 17, 2006 by Martin_F