Business Law
- Law as a framework of business
- Law in everyday life: contract law (e.g. buying contract), tax law (we pay VAT and also income tax), rental & leasing law (if you live a dorm or rent a condo), claim on remedy or in case of neglect or tort, or since we were born, law grant as a legal status as “natural person” which allows us for some specific right e.g. to vote, to get married, to hold assets, to enter contract.
- Law related to business: business registration, selling and buying contract, cartel & competition law, intellectual property right, environmental law, labor law.
- Legal forms of business organization
1. Sole proprietorship: easiest form to establish. No separate entity.
2. Partnership (starts up from 2 person)
- unregistered ordinary partnership: no separate entity. Owners handle in their own name as natural person, therefore, personal income tax. Unlimited liability, liable with partnership and private assets.
Severaly and jointly liable for others partners.
- registered ordinary partnership: Separate entities from partners. Able to own asset, to sue or be sued in the court under partnership. Still unlimited liability and jointly. Pay corporate income tax. 2.Obligor, claim partnership first, then partner.
- limited partnership: one partner is limited partner and the other call general partner. Limited partner provide money and liable with the sum of his initial investment (limited liability) but general partner liability is unlimited. Pay corporate income tax.
- private company: the most common form of business organization in Thailand. Establish by at least 3 promoters. Separate entity. Liability is cap by unpaid capital. Pay corporate income tax.
Dividend paid to shareholder will tax again (10% withholding tax).
- public company: 15 promoters. More process required when setting up this form. Can raise fund in stock exchange market.
- See the comparison table!!!!!!
5. Business environment