Limited Companies

There are two types of limited companies: Private or closely held Companies, which are governed by the Civil and Commercial Code, and Public Companies, which are governed by the Public Company Act.

Private Limited Companies in Thailand have basic characteristics similar to those of Western corporations. The company can be wholly owned by foreigners. However, foreigner participation is generally allowed up to 49 % in the business activities reserved only for Thai nationals. (Foreign Business Act B.E. 2542)

A private limited company is formed through a process which leads to the registration of a Memorandum of Association (MOA or Articles of Incorporation) and Articles of Association (By-laws), as its constitutive documents. The liability of Company's shareholders is limited to the par value of the authorized capital; however, the liability of the directors may be unlimited in subject to the company's memorandum of association (MOA) or the articles of incorporation. The limited company is managed by a board of director according to the company's charter and by-laws.

Except to accomplish the company's objective, there is no required a minimum amount of capitalisation. All of the shares must be subscribed to, and at least 25 per cent of the subscribed shares must be paid up.

All shares are required to have voting rights even though both common and preferred shares of stock may be issued. Thai law prohibits the issuance of shares with no par value; it also stipulates that only shares with par value of at least five Baht or above may be issued. Thai private limited company's shareholders must never be fewer than three at all times and treasury shares are prohibited.

Alternatively, existing foreign companies can set up:

 

For more details on our incorporate services, including pricing information and other related services, please select Incorporation package services, or  select Customise packages to find an incorporation package suitable for your needs.



The Thai Chamber of Commerce British Chamber of Commerce Singapore-Thai Chamber of Commerce Thai-Hong Kong Trade Association Broadhurst (Pacific) Co.,Ltd. Curtis Fords Co., Ltd.