Thai Limited Company Quick Facts

A Limited Company is the most popular form of business structures in Thailand because…

  • The liability of the shareholders are limited to any amount left unpaid on their shares
  • There is a separation between owners and management

Section 1096 of the Thai CCC (Civil and Commercial Code) mentioned that “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.

The incorporation of a Private Limited Company requires:

  • A minimum of  3 shareholders
  • At least 1 director
  • An auditor
  • A memorandum of association
  • A statutory meeting
  • Registration of the incorporation papers

Remark: Unrestricted in the activities compared to majority foreign owned companies where Foreign Business License may have to be applied for 51% of share or more must be held by a Thai national or entity, if the nature of business is restricted or prohibited by Foreigner Business Act.

They must also follow accounting procedures specified in the Civil and Commercial code, the Revenue Code and the Accounts Act. A balance sheet must be prepared once a year and filed with the Department of Revenue and Commercial Registration. In addition, companies are required to withhold income tax from the salary of all regular employees.

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To contact Jarrett Lloyd by phone, please call +66-2392-4187 or email at contact@jarrettlloyd.com