What is a Thai limited company?
A Limited Company, particularly a Private Thai Limited Company, is the most popular form of business structures in Thailand. Its key features are:
- It is owned by a minimum of three shareholders.
- The liability of each of the shareholders is limited to the par value of their shares.
- Shareholders’ participation in the company is limited as the directors are managing company affairs.
Section 1096 of the Thai CCC (Civil and Commercial Code) has provided that “A limited company is that kind of which is formed with a capital divided into equal shares, and the liability of the shareholders is limited to the amount, if any, unpaid on the shares respectively held by them.”
The incorporation of a Private Limited Company requires the following:
- At least 3 natural persons as promoters (initial shareholders). Three shareholders are required at all times throughout company operation.
- Head office located in Thailand along with a copy of House registration (Tabien Ban) number and Letter of Consent obtained from the landlord.
- Minimum registered capitalization of 2 million THB for foreign businesses operating non-restricted and 3 million THB for restricted businesses under the Foreign Business Act. Thai-owned companies, not subject to such requirements (but will need to meet financial requirements to support a work permit for an expat).
- A memorandum of association to be filed with the application.
- A statutory meeting has to have been convened.
- Letter of Certification from the bank to certify the adequacy of funds in the Thai shareholder’s personal bank account where Thai shareholders will be amongst foreign shareholders.
- All shareholders/initial promoters and directors will be required to sign part of the application documents in Thailand.
Phangan Land is equipped with a trusted legal team who have worked with hundreds of foreigners interested in procuring land plots on the island, who are willing to assist you. You can reach out to using the contact form on our page.
