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Initiating A Business In Thailand And The Laws Associated With Doing So.

Date Added: July 27, 2014 05:07:18 AM
Author: Julienne Schramm
Category: News: Radio

As it is very complicated and sometimes impossible to obtain a foreign business license most foreigners conduct a business without a foreign business license or exemption despite these business categories are restricted or prohibited for foreigners. These foreigners have a work permit issued under a Thai company and operate their business through a Thai limited company. Thai company means under the current Foreign Business Act that half or more of the shareholders are held by Thais. Foreigners are under the current FBA allowed to have majority voting rights and control in a Thai limited company through preference shares and weighted voting rights. The mostcommon form of business entity among foreign investors is therefore the private limited company. A Thai company is immune to the Alien Business Act and when a partly foreign owned Thai company is structured as majority Thai owned it is deemed that the business is operated by a Thai entity (not foreign/alien) and the company will in principle be regarded as a Thai company and therefore, as a Thai juristic person, the company will not be restricted by the Foreign Business Act. Many foreigners invest in a Thai business or initiate a Thai company with a Thai or foreign partner in the company, in such structures it is recomeded to specify in the articles of assocation (the user's manual of the company) the procedures, duties and authority of directors, such as procedures for the making of decisions and (limited) individual authority to manage and sign on behalf of the company. In case you liked this article and also you desire to get more information concerning Thailand Legal Advice kindly go to our webpage.