Setting up a business in Thailand
Business activities can be operated under various forms, such as sole proprietorships, limited partnerships, limited companies or joint investment with other persons

Types of Business Organizations
Thailand recognizes three types of business organization:
  1. Sole proprietorship

    This is a firm, owned by a single individual that is not incorporated.



  2. Partnership

    There are three general types of partnership:

    1. Unregistered ordinary partnerships, in which all partners are jointly and wholly liable for all obligations of the partnership.
    2. Registered ordinary partnerships. If registered, the partnership becomes a legal entity, separate and distinct from the individual partners.
    3. Limited partnerships. Individual partner liability is restricted to the amount of capital contributed to the partnership. Limited partnerships must be registered.



  3. Limited Companies

    There are three kinds of limited companies:

    1. Private Limited Company

      The most popular form of business organization among foreign investors is the private limited company. Private limited companies require a minimum of seven promoters and must file a memorandum of association, convene a statutory meeting, register the company, and obtain a company income tax identity card. They must also follow accounting procedures specified in the Civil and Commercial code, the Revenue Code and the Accounts Act. A balance sheet must be prepared once a year and filed with the Department of Revenue and Commercial Registration. In addition, companies are required to withhold income tax from the salary of all regular employees. A representative office may also be established to engage in limited "non-trading" activities, such as storing goods or services in Thailand for its head office or inspecting and controlling the quality and quantity of goods which its head office purchases in Thailand. A regional office of a multinational corporation may be established to coordinate and direct the operation of branches operating in the region on behalf of its head office, and must not receive income or have the authority to negotiate business with persons or legal entities in Thailand. Application for establishment of a representative office or a regional office must be submitted to the Department of Commercial Registration.


    2. Limited Partnership

      1. partner(s) with limited liability, being one or more partners who liability is (are) limited to only the amount he (they) agree(s) to invest in the partnership;
      2. partner(s) with unlimited liability, being one or more partners who shall be liable for all the obligations of the partnership without limitation.
       
      When two persons or more agree to jointly invest in the operation of activity under any type of juristic partnership as above mentioned, the managing partner (in case of a limited partnership, the managing partner must be the partner with unlimited liability) appointed by every partner has the duty to apply for the registration for the establishment of such partnership with the competent authorities at the Commercial Registration Office in whose area the head office of the partnership is located. He must proceed in accordance with the method and procedures prescribed by the law and the official regulations. Afterward, if such juristic partnership agrees to make any change to the registered particulars, application to register such change must be made at the same Commercial Registration Office.

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    3. Public Limited Companies

      Public Limited Companies must have a minimum of 15 promoters. Permission for inviting the public to subscribe for shares must be applied for as prescribed by the Securities Exchange Act B.E. 2535.