Setting Up a Business in Thailand
Business activities can be operated under various forms, such as sole proprietorships, limited partnerships, limited companies, etc. or joint investment with other persons. In deciding under which form the business should be operated, one must consider various essential elements such as nature of the trade, capital investment, knowledge and ability to operate the business, etc.
The following is an overview of establishing a business in Thailand.
Types of Business Organizations
Thailand, like many other countries, recognizes three types of business organization:
Sole proprietorship
This is a firm, owned by a single individual, that is not incorporated.
Partnership
Thai and Western concepts of partnership are broadly similar. Thailand provides for three general types of partnerships as follows:
Unregistered ordinary partnerships, in which all partners are jointly and wholly liable for all obligations of the partnership.
Registered ordinary partnerships. If registered, the partnership becomes a legal entity, separate and distinct from the individual partners.
Limited partnerships. Individual partner liability is restricted to the amount of capital contributed to the partnership. Limited partnerships must be registered.