Complicated Thailand Business Act

Complicated Thailand Business Act

Shanghai, China (prHWY.com) May 10, 2012 - Business in Thailand has certain rights reserved only for Thai citizens. Foreigners in Thailand, therefore, derive their legal restricted rights primarily from the domestic laws of Thailand.

If majority of the shares of a limited company are held by Thais, it is regarded as a Thai company and thus not subject to this Act. This means that aliens are generally allowed to participate up to 49% in a company engaged in restricted businesses. Beyond that, the approval requirement must be complied with. Strictly speaking, any company with majority of foreign shareholders is required to apply for the Foreign Business License (FBL).

The minimum capital requirement for foreigners is two million baht in general, and three million baht for those under List 2 or List 3.

There are some exceptions which allow the foreigner to set up business in Thailand where majority of the owners are foreigners. THAILAND TREATY OF AMITY is one of such exception. Under this treaty, the majority of share and director have to be U.S. citizens to enjoy the exemption from FBL.

Same as THAILAND TREATY OF AMITY, and the THAILAND BOARD OF INVESTMENT (BOI)is another exception which might allow foreigners to operate their businesses in Thailand by holding majority of share. Foreign investors may hold a majority or all shares in promoted project depending on the BOI consideration. Such BOI-promoted company will not be restricted under FBA.

Foreigners wishing to engage in businesses indicated in List 2 or List 3 of Foreign Business Act in Thailand need to obtain a "Foreign business license" from relevant authorities before starting their business operations.

An application should be filed with the Commercial Registration Department, which will be reviewed by the Cabinet or Foreign Business Committee, as the case may be. Various criteria are used to consider the impact of the proposed business operation, such as the advantages and disadvantages to the nation's safety and security, economic and social development, size of enterprise, local employment, etc. Approval of business license application is more likely when the authorities view the business as providing significantly more benefits and protect and promote Thai interests.ore beneficiation:http://www.hxjq-crusher.com/63.html
jaw crusher:http://www.hx-crusher.com/crusher.html

The application process can be at times very time consuming with unpredictable outcomes. FBA is a complicated long process; in general, most of foreign investors will rarely go through FBA even if they had a serious chance to get it. On the other hand, they will not hesitate to submit the BOI application even when there are only a few chances that it might be promoted.

Doing business in Thailand, you have the choice over what type of business organization to establish. There are 3 different types of businesses which can be registered for cone crusher production. There is a Thai partnership, a Thai representative office, or a Thai limited company. More common than not, a Thai limited company is the most commonly used form of business setup chosen by foreigners doing business in Thailand.

Make certain you are aware of what business activity your company of dryer machine will be engaging in or simply contact Siam Legal for professional advice and assistance from any of our Thai lawyers or any number of our foreign lawyers.

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