Isaan company legal advice online by Thai lawyers

Source: Thailand business lawyers online

Expatriates in Isaan starting a business must be aware that most business activities are prohibited or restricted for foreigners. Some activities are absolutely prohibited for foreigners (e.g. farming, land trading), some are generally prohibited for foreigners (businesses affecting natural resources or environment). For certain business categories (generally those under list 3 of the Foreign Business Act) an exemption may be granted under a specific Act or treaty (e.g. foreign business license, or permission through the Board of Investment).

A translation of the Foreign Business Act (including the lists 1, 2 and 3 businesses) and a foreign business license handbook is available on the website of the Department of Business Development.

Business start-up

Most foreigners operating a business in towns like Roi-Et, Korat, Buriram, Surin, Khon Kaen or Udon Thani choose to operate a business under a Thai company (i.e. majority Thai owned) and have a work permit for Thailand issued through the Thai company. A Thai company with foreign shareholdings of up to 49% is generally not subject to the business restriction and licensing procedure foreigners have to comply with in Thailand. Foreigner are however NOT allowed to use Thai nominee shareholders to circumvent the Foreign Business Act. The formation of a partly foreign owned company must comply with the Business Registration Rules issued by the Ministry of Commerce which are aimed at preventing the use of Thai nominee shareholders by foreigners.

Foreigners are however under the present Foreign Business Act allowed to control and manage a legitimate Thai company, however; some business categories require separate licensing (e.g. TAT tourist license) and have separate conditions (i.e. require a majority or 50% Thai management and directors in the Thai company).

We offer reliable legal advice, document preparation, business agreements, Thai company formation, licensing applications, etc:

• General company legal advice in Thailand
• Company formation document preparation and translation (including company Thai name search and registration)
• Articles of Association drafting & preparation service
• Various Thai company and government document translation services (Thai/ English)
• VAT and Tax ID registration

Limited companies in Thailand have basic characteristics similar to those of Western corporations. A private limited company is formed through a process which leads to the registration of a Memorandum of Association (Articles of Incorporation) and Articles of Association (By-laws), as its constitutive documents.

Related:

• Foreign Business Act 1999
• Company formation
• Representative office
• Working of Aliens Act
• Work permit application
• Land holding companies
• Thai nominee shareholders

Popular business agreements:

• Share transfer agreements
• Business sale agreements
• Confidentiality agreements
• Partnership agreements
• Joint venture agreements
• Shareholders agreements

More information:

* Department of Business Development
* Board of Investment