Thailand Company Registration
Business in Thailand
Business Registration is up due to Thailand’s unprecedented economic growth over the years which has been attracting investors to Thailand and addressing the country’s increasing market demands while hoping to maximize the return on their investments in the process. Foreign investors are flocking to Thailand because of strong government support and incentives, sufficient infrastructure, skilled and a cost effective workforce. Doing business in Thailand is also supported by well-defined policies geared towards liberalization and free trade, social and political stability and the country’s strategic location in Asia. The same reasons why doing business in Thailand is one of the most attractive investment destinations in the world.
When doing business in Thailand, you have the choice over what type of business organization to establish. These are the options:
Business Registration Options
Registered Ordinary or Limited Partnership,
Representative Office, Regional Office, Branch Office or
Due to its flexibility, the Limited Company is the most appealing form of business organization among foreigners doing business in Thailand.
Do you need a lawyer?
Doing business in Thailand can be very complicated and may take you several weeks to complete the process. This is mainly due to the registration procedures and the required documents and forms being in Thai. It follows that you need someone you can trust and who is able to communicate in Thai on your behalf to be able to successfully review your company registration. Siam Legal’s licensed Thai lawyers and foreign attorneys/solicitors can take care of the legal points of setting up your business thereby making sure that all the necessary requirements are met.
Furthermore, we can give you relevant pieces of advice on doing business in Thailand efficiently. Finally, at Siam Legal, we can give you a one stop service for your convenience i.e. we can help you set up a company while getting you a Thai work permit and a Thai Visa at the same time. Consult us today about your company registration!
The basic principles of Thailand contract law are mostly similar to contract law in Western jurisdictions. The main body of law controlling Thailandcontracts interpretation is the Thai Civil & Commercial Code (TCCC). However, there is often specialized areas of legislation that may affect business agreements in Thailand. The basic principles of contract formation are controlled by TCCC Book I. The following are specific types of Thailand contracts controlled by TCCC Book III:
Hire of property
Hire of work
Gambling and betting
Partnerships and companies
In normal business law practice in Thailand, contracts require 2 competent witnesses. For acceptance by Thai court,Thailand contracts must either be originally drafted in Thai language or must be translated in Thai language.
In cases where contract disputes arise, contracting parties may resolve it through the court system or alternate dispute resolution such as arbitration. A court complaint is usually preceded by a demand letter or “notice”. Many contracts specify mediation or arbitration prior to or in lieu of filing a case with a Thai court.Thailand has a special court of International Trade and Intellectual Property. Generally, contract disputes in Thailand are in either the international court or provincial court or in arbitration sessions.
Civil Action & Commercial Action
Civil actions are lawsuits brought before courts whereby a party sues another for the enforcement or protection of a right, or the prevention or redress of a wrong.
Civil cases generally cover property and business disputes, personal domestic controversies, divorces, torts, and such other types where a party’s rights are breached.
While many disputes may be settled amicably, the injured party, called the “Plaintiff” eventually goes to court after he determines that the controversy can no longer be resolved without judicial intervention. The Plaintiff, through his lawyer, must file a complaint in writing with an appropriate Court of First Instance, clearly setting out the nature of his claim, the relief sought and the allegations upon which the claim is based. The party against whom the case is filed is called the “Respondent”.
Several factors are taken into account in the filing of a civil lawsuit. These include the proper designation of the case, the jurisdiction of the court, the determination of the proper parties, and many others which will make the assistance of a lawyer indispensable. Failure to properly determine any of the said factors can cause serious consequences, like the early dismissal of the suit.
Divorces, breach of contract and collection of sum of money are among the most common of civil lawsuits filed in Thailand. When these cases are filed in court, the Thai tribunals still aim for a last chance at an out-of court settlement. A preliminary hearing is set not only for the identification of issues, but more importantly for the possibility of a compromise. In some cases, courts may temporarily adjourn a case if parties are willing to settle, but may also set in motion a continuous trial on the merits should it determine that a compromise is not feasible.
All court proceedings are required to be conducted in Thai language, except in some special courts. Documents made in a foreign language must be translated into Thai. Only original documents are admissible in evidence, save in some instances. Preponderance of evidence is enough to prove one’s claims in a civil suit.
Until a final adjudication of the case is reached by the court, a Thai lawyer’s participation is crucial. Not only because the court proceedings are conducted in the native tongue, but because there are also remedies and practices which are atypical to the Thai judicial system. Your lawyer must be able to take you through the entire process, not only until the judgement stage at the Court of First Instance, but through possible stages of appeal with the Appeals Court and the Supreme Court.