Integrity Legal - Law Firm in Bangkok | Bangkok Lawyer | Legal Services Thailand Back to
Integrity Legal

Legal.co.th - Resources 

Research & gain insights into Thai, American, and International Law.

 

Contact us: +66 2-266 3698

info@integrity-legal.com

ResourcesCorporate and Tax AdvisoryThailand Corporate LawWhat is a Limited Company in Thailand?

What is a Limited Company in Thailand?

Transcript of the above video:

As the title of this video suggests, we are discussing Limited Companies in Thailand

Frankly, it may seem somewhat simplistic to ask this question but it is a good question to ask. What is a Limited Company in Thailand?

To quote directly from the Thai Civil and Commercial Code, specifically title 22, chapter 4 - Limited Companies part 1: Nature and Formation Section 1096.  To quote directly: "A Limited Company is that kind of which is formed with a capital divided into equal shares and the liability of the shareholders is limited to the amount, if any, unpaid on the shares respectively held by them." So in a sense, Thai Limited Companies are much closer in terms of, their evolution if you will, their legal evolution if you consider it in an international legal context. They are much closer to so called joint stock companies or C-Corps in the United States, as opposed to entities that are akin to so-called LLCs or LTDs, Limited Liability Companies in the United States, where you don't necessarily have a share structure; it is just sort of a corporate veil. There is a manager, a manager member, there are various members. LLCs are very different in nature from Limited Companies here in the Kingdom. 

We have other videos on this channel with respect to the details on Limited Companies but I wanted to go ahead and just sort of go to the source, ie. the Civil and Commercial Code. We have the entire Civil and Commercial Code on our website. That is legal.co.th.  If you go to the resources section and just click the button for the Thai Civil and Commercial Code, you can find all this stuff directly and we have it in the English language for the convenience of our readers and prospective clients.  I just thought that was interesting. That is section 1096 and that basically just explains that a Limited Company, provides dividing of capitalization and limits the amount of liability of the shareholders to the actual shares or unfunded shares that they may hold.