Pattaya Legal - Law Firm in Pattaya & Chonburi

Starting a Thai limited company is easy enough if you know the steps. Always consult an attorney in Pattaya for other rules and regulations as we have just listed a brief breakdown of the company setup itself. There are many advantages in Pattaya when having a registered business as it allows you to obtain a work permit, of course depending of your line of business. See the rules with regards to work permits in Thailand as the rules which govern them as foreigners are barred from certain professions.

1.    The liability of the investors is limited to the value of their shareholding. Section 1096 of the Thai Civil and Commercial Code [CCC] provides as follows:

“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”.

2.    Image and credibility - see above

3.    Capital can be introduced from third parties [shareholders] who do not necessarily have to participate in the management of the business.

It should be noted that the CCC [section 1097] provides that:  “any three or more persons may, by subscribing their names to a memorandum and otherwise complying with the provisions of this Code promote and form a limited company”.  Put simply, you need three people to participate in establishing a Thai limited company.  This is similar to the business model in the UK which specifies that a limited company must have two directors and the company secretary.