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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 - Limited Companies

Shareholders enjoy limited liability, i.e. limited to the remaining unpaid amount, if any, of the par values of their shares. The liability of the directors, however, may be unlimited if so provided in the company's Memorandum of Association or the Articles of Incorporation. The limited company is managed by a Board of Directors according to the company's charter and by-laws.

All shares must be subscribed to, and at least 25 percent of the subscribed shares must be paid up. Both common and preferred shares of stock may be issued, but all shares must have voting rights. Thai law prohibits the issuance of shares with no par value. It also stipulates that only shares with a par value of 5 Baht or above may be issued. Treasury shares are prohibited.

A minimum of seven shareholders is required at all times. Aliens may wholly own a private limited company. However, in those activities reserved for Thai nationals, the aliens' participation is generally allowed only up to a maximum of 49 percent.

The registration fee for a private limited company is 5,500 Baht per 1,000,000 Baht of registered capital.

A limited Private Company

Procedure for the registration of a limited private company

1. Reservation of the company name
2. The promoters of the company must file a memorandum of association to the Provincial Registration office. There must be at least seven promoters who are ordinary persons to sign the memorandum of association which must contain the following.
3. The full name and intended location of the company
4. The objectives of the company
5. The intended location of the head office of the company
6. A declaration of the share holders limited liabilities
7. The amount of share capital and the value of each share.
8. The names, address, occupation and signatures of each of the promoters with the numbers of share subscribes by each (at least one share).
9. The officials will review the memorandum of association especially the company objectives to determine whether it is against the law or public morals.

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