Monday to Sunday



Contact us


Compare Listings

Setting Up Company Partnerships under Thai Law

Setting Up Company Partnerships under Thai Law

Setting Up Company Partnerships under Thai Law

Siam Legal International | October 10, 2016 | Business in Thailand, Civil and Commercial Law, Company Law, Company Registration

The Civil and Commercial Code of Thailand provides for the formation of partnerships as is found in the laws of other countries. However, partnerships are normally not formed by foreign investors due to particular difficulties that arise due to the Foreign Business Act of 1999. Generally speaking, the formation of a limited company is more advantageous to foreign investors since majority Thai-owned companies with foreign directors are still considered “Thai nationals” for the purposes of the Foreign Business Act. In contrast, partnerships, even if formed with majority Thai capital investment, are still considered “foreign nationals” if the managing partner is a foreign national. Nevertheless, it is possible for foreign nationals to operate business in Thailand as a partnership in certain cases, such as if they are operating a business that is unrestricted by the Foreign Business Act, or if they have obtained a Foreign Business License or a Foreign Business Certificate under the Thai-U.S. Treaty of Amity. A few of the notable points regarding the operation of a partnership is as follows:

There are three forms of partnerships: an unregistered ordinary partnership, a registered ordinary partnership, and a limited partnership.
As for the unregistered ordinary partnership, it refers to a business partnership arising from a contract and does not constitute a juristic person. The partners are jointly and unlimitedly liable for the obligations of the partnership and are bound to each other by the terms of their partnership agreement. If an ordinary partnership is then registered, it will have the status of being a juristic person. Nevertheless the partners are still personally liable to third parties.

Read more



    Related posts

    TAT and Jeollanam-do jointly promote Songkran and Jeongnamjin Jangheung Water Festivals

    Bangkok, 20 June 2024 – The Tourism Authority of Thailand (TAT) and Jeollanum-do have signed a...

    Continue reading
    by ZONEZI

    Lufthansa close to getting go-ahead for Italy’s ITA Airways deal

    Lufthansa close to getting go-ahead for Italy's ITA Airways deal. Lufthansa wants the move to...

    Continue reading
    by ZONEZI

    Union Cabinet ministers get down to work. Here’s their priority list

    Union ministers in Narendra Modi' Cabinet 3.0 have set their priorities to realise ‘Viskit...

    Continue reading
    by ZONEZI

    Join The Discussion