Registering a company is necessary for Thailand if you wish to own a business. A business can take one of several forms. Before you review the steps for registration, you need to review the types of legal entities.
You can operate under an ordinary partnership that is either registered or unregistered. You can also choose to run your company as a limited partnership, which limits your liability. Technically, an unregistered ordinary partnership is not considered a legal entity. If an ordinary partnership is registered, it possesses certain legal rights, liabilities, and obligations, each of which is separate from the partners.
Unlimited partners and limited liability partners may comprise a partnership. The unlimited liability partners are liable for debts, regardless of capital investment. Limited liability partners, on the other hand, are only liable for the amount of capital they contribute to the partnership.
One Important Thing to Note about Partnerships
While you can register a partnership more easily than other company entities, you cannot apply for work permits if you own a partnership in Thailand. You also cannot open a corporate bank account under the business’s name.
Incorporation and Registration
Thai lawyers recommend that you register any of the aforementioned business entities with the Department of Business Development or DBD. Therefore, you will need an attorney to help you with the registration process, as you must prepare the paperwork and check on your qualifications.
The DBD maintains an office in the capital of Bangkok, as well as other locations in Thailand, which makes registration convenient, even outside the capital. It does not matter where you locate your business. The DBD documentation for registration can be submitted at any office. However, if you make any modifications to your business set-up, you must submit your DBD documents to the office where your company is based.
Limited Company Registration
While the registration process and the listing of documents are not too difficult for a partnership or sole proprietorship, it becomes more involved if you operate a limited company. To incorporate and register a limited company, you need to reserve the company name. Also, you must arrange a meeting for company incorporation. The company registration and a memorandum of association must be prepared. This must be done within an established timeframe.
If you need the assistance of a corporate lawyer in Thailand, please contact us.