As in the West, shareholders play a massive element in any organization in Thailand regardless of whether they are Thai owned or foreign owned. But they are also essential for register a firm in Thailand if you are a foreigner hunting to expand your enterprise in the Asia region or are just wanting a begin up to test if your new killer notion will be the next massive factor. As you would count on, since you are registering a business in a foreign company then most of the shareholders need to really be Thai.
Now what do you do if you do not have any real Thai close friends as you are new to the country? Well there are lots of organizations out there that will assist you in performing this activity and obtaining your organization off the ground but it aids if you discover a lot more about Thai enterprise law and the roles shareholders play also. For instance there is what is referred to as a nominee shareholder. This is not somebody who truly has any active shares in the business but as an alternative is somebody who is merely a shareholder in name only and as a result would be a dummy shareholder if you wanted to be precise and this is an illegal practice in Thailand.
This signifies that they have no monetary stake in your organization and as said this is illegal and tends to make a lot of sense why it is as it would mean that the company exists on paper only. If there are shareholders in a firm and these shareholders do not exist then it says a lot about the company itself and the way it operates if they are not prepared to respect and abide by Thai law. And following Thai law when registering a company in Thailand is exceedingly critical. The benefits of registering a business where the majority of shareholders are obvious. It allows the business, delivering over 50% of shareholders are Thai, to operate in places or services that would usually be restricted to foreigners. This primarily means that if your organization dealt with land back in your personal nation then when you register firm in Thailand you need to have to make sure more than 50% of shareholders are Thai otherwise your business can’t work in regions that deal with land and hence your company would clearly endure.
When you appear at Thai law this makes sense as any foreigner who lives legally in Thailand can not deal with land either. It all has to be carried out by Thai individuals in their name and this is why, as said, there are many businesses out there that are willing to help in this respect. Registering a business in Thailand can be a time consuming procedure but it is definitely worth it if you meet the requirements and remain inside the law as the Thai police appear down on organizations that are illegally operating in Thailand even if you have noticed or heard differently as it can be seen as a sign that the laws and customs of Thailand are not being respected and Thai people are very proud of their heritage.