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Overview of Types of Business Organizations

:: Partnerships
:: Limited Companies
:: Public Limited Companies
:: Other Forms of Corporate Presence
:: Alien Business License

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Types of Business organizations - Partnerships

Sole Proprietorship

An individual carrying out business by himself is called a sole proprietor. The operation of a Sole Proprietorship is governed by the law relating to the particular business undertaken e.g. obligations, sale of goods, hire of work, agency and employment under the Civil and Commercial Code.

Partnerships

Under Thai law there are three different partnerships;


:: Unregistered Partnership
:: Registered Partnership
:: Limited Partnership.

Unlike the Proprietorship, a partnership must consist of at least two members who agree to combine their assets or labour in running a business for their joint profit.

Unregistered Ordinary Partnership

An unregistered ordinary partnership is the most common type of business organization because it requires less formality in comparison with other types of partnerships. This is simple to establish which requires no filing of particulars e.g. names of members, authorized partners principal place of business it dopes not provide a potential contracting party with any information to assess the partnership creditability. Very often, an unregistered partnership involves a claim over the partnerships assets by a silent partner whose name does not appear in the contracts or business.

Liability of Partner. The partners have unlimited liability for the debts of the partnership. A withdrawing partner is still liable for the debts of the partnerships incurred up to the time of his withdrawal.

Registered Ordinary Partnership

An ordinary partnership may voluntarily be registered according to the provisions of the Civil and Commercial Codes, to become a separate juristic entity from the partners.

A proposed registered ordinary partnership must file the following

1. Name of partnership
2. Objectives
3. Address of Business
4. Names of all partners
5. Name of managing partner
6. Restriction if managing partner (if any)
7. Partnership seal.

Liabilities The liabilities of the partners of registered ordinary partnership is basically the same as that of the unregistered ordinary partnership.

However the registered ordinary partnership enjoy the following advantages.
1. The liability of partners for debts of the partnership incurred before his resignation is limited to two years from the date of resignation.
2. The assets of the partnership must be examined before a creditor can claim a debt payment from the partners.

Limited Partnership

A limited partnership consists of two types of partners, namely;
1. Partners whose liability is limited to the specific amount which he has contributed to the partnership (similar to the liability of shareholders f a company, and
2. Partners who have unlimited liability for all debts incurred by the partnership

Unlike ordinary partnerships, a limited partnership exists only when it is registered. The application for registration must contain their investment and these particulars;

1. .Name of partnership
2. Objectives
3. Address of Business
4. Names of all partners
5. Name of managing partner
6. Restriction if managing partner (if any)
7. Partnership seal.

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