subject: Corporations In Thailand And The United States [print this page] The following article compares and contrasts the process of setting up a company in the United States of America and the Kingdom of Thailand.
As the Earth becomes increasingly socially, economically, and politically integrated through the process of globalization it becomes evermore important to comprehend the relative benefits of company incorporation in multiple jurisdictions. Furthermore, as corporations (big and small) require more international presence in order to adequately conduct business it is increasingly urgent to have a basic understanding of the legal peculiarities specific to certain jurisdictions.
In some jurisdictions within the United States it is somewhat easy to register certain corporate structures. Although, those wanting to establish a company in America are prudent to seek competent legal advice in order to ensure that all formalities are duly met. Furthermore, an attorney can give guidance as to the best type of corporate structure based upon the type of business one wishes to conduct. In some cases, an American attorney can provide advice regarding possible tax issues as well as the legal obligations and privileges arising from the establishment of a corporation.
In many respects, it is relatively easy to obtain limited liability in most of the jurisdictions of the USA. Although maintaining limited liability could prove somewhat cumbersome for some individuals and corporations. In Thailand, establishing a limited company can be a very difficult endeavor. Couple this with the fact that there are a great many legal restrictions placed upon foreign nationals doing business in Thailand and one is left with little option, but to seek competent Thai legal counsel in order to adequately protect one's personal as well as corporate interests.
One area in which Thailand's system of corporate governance differs markedly from that of the United States is maintenance of corporate records. In the USA, it might be possible to incorporate a so-called "shelf company". In the Kingdom of Thailand, this is not the case, "shelf companies" do not exist in a practical sense due to the accounting and bookkeeping requirements that come "part and parcel" with Thai corporate regulations. Another issue of note is that Thai law may place criminal sanctions upon those who fail to comport with Thai regulations regarding corporate information reporting.
Due to these somewhat burdensome requirements, those wishing to engage in business in the Kingdom of Thailand are prudent to conduct research and due diligence prior to investing money, expending resources, or incorporating a juristic person within the jurisdiction. In some cases, it may be best to retain counsel to provide advice regarding the best way to incorporate a Thai company. This is even more important where a foreign company seeks to setup a Thai subsidiary in the form of a limited company, branch office, or representative office; as there are many legal and tax implications that may arise from multi-jurisdictional corporate transactions.
