Currently, investors around the world are tending to establish companies in Thailand to expand their business market. There are many reasons for this, firstly, Thailand’s economy is thriving, in addition to Thailand being the second largest economy in Southeast Asia and eighth in Asia. Secondly, Thailand’s geographical location is very strategic, located in the center of Southeast Asia, which is a gateway to connect to major markets in the region. This is convenient for trade and business expansion. The Thai government also has very attractive policies to encourage foreign investment, including tax incentives, administrative procedure support and creating favorable conditions for businesses to operate. However, many investors do not know what types of companies can be established in Thailand, Viet An Law would like to guide customers on the types of companies that can be established in Thailand through the article below.
Private Limited Company:
Public Limited Company:
| Private Limited Company | Public Limited Company | |
| Number of Shareholders | Minimum 3 shareholders | Minimum 15 shareholders |
| Character | · Shares are not freely transferable to the public.
· Usually suitable for small and medium-sized businesses, or family companies. · There are fewer disclosure requirements than public companies.
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· Shares are freely traded on the stock market (after listing).
· Suitable for large businesses, wanting to raise capital from the public. · Higher requirements for information disclosure and compliance with legal regulations.
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| General Notes | · Charter capital: There is usually no specific minimum charter capital requirement. However, for a limited company, the value of each share may not be less than 5 THB, and at least 25% of the value of the shares must be paid in full. For a public limited liability company, 100% of the issued share capital must be paid in full.
· Nationality of Shareholders: Shareholders can be individuals or legal entities, not necessarily Thai. However, there may be restrictions on foreign ownership rates in certain areas of the business. · Board of Directors: For a public limited company, the board of directors must have at least five members and at least half of the directors must reside in Thailand. |
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Characteristics of a Partnership in Thailand:
A joint venture company is a business partnership agreement between two or more parties (be it individuals, companies, or governments) to work together on a specific project or business activity for a certain period of time. The goal of a joint venture is often to share profits, risks, and resources.
Characteristics of the joint venture company:
Forms of Joint Ventures:
| Character | Partnership | Private Limited Company | Public Limited Company | Joint Venture |
| Establish | Simpler | More complex than Business Households/Partnerships | The most complicated | Depending on the form |
| Number of Members | Minimum 2 | Minimum 3 | Minimum 15 | Minimum 2 |
| Responsibility | Infinite (partnership) | Limited (within the scope of contributed capital) | Limited (within the scope of contributed capital) | Subject to agreement |
| Charter capital | Not required | There are usually no specific minimum requirements, but they need to be sufficient to function | There are usually no specific minimum requirements, but they need to be sufficient to function | Subject to agreement |
| Administer | Co-management members | Board of Directors | Board of Directors | Co-management |
| Raising capital | Difficulties from the outside | Easier (bank loans, bond issuance) | Easiest (public offering) | Subject to agreement |
| Continuity | Suspension of operations when a member withdraws/dies (unless otherwise agreed) | Continue to operate even if there is a change of shareholders | Continue to operate even if there is a change of shareholders | Usually ends after the project |
