Company Registration: Thailand's patriotic structure
We cannot exhaust the reasons why foreigners would like to set up a company in Thailand asides from the opportunity it offers such a foreigner to work, live and acquire property in Thailand. The government of Thailand encourages new businesses and companies that emerge not just to make money but also to contribute their quota to the development of the Thai economy. So many reasons can be mentioned that may motivate foreigners to establish their business in Thailand.
There are certain steps involved when one wants to set up a company in Thailand. There are methodical procedures, forms to be filed with different agencies in Thailand which require certain supporting documentation. Since all these documents are written in Thai language, a foreigner is advised to hire the services of an attorney that is very sound and proficient in Thai and English language or any other language of the foreigner.
Just like the common trend in most countries with very nationalistic and patriotic undertone, in a Thai company, the majority of the shares must compulsorily be owned by a Thai citizen. The only exception to this rule is if the company is a part of BOI, a Board of Investment program. In essence, a foreigner cannot own up to 50% of a Thai company.
Another exception to this rule emphasizes the nationalistic tone of Thailand and the fact that the Thai government prefers businesses that do not compete with Thai businesses. The less than 50% limit may be waived for certain businesses if they are considered to be unique and not a threat to the business of citizens or the government of Thailand. In this instance, a Foreign Business License is usually granted to such a company. With such a structure in place, the possibility of Thai businesses suffering at the expense of a foreign one is almost completely eliminated.
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