Corporations in Thailand and the United States
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 many jurisdictions within the United States of America it is relatively simple to establish certain corporate structures. That said, those wishing to setup a company in the USA are well advised to seek legal counsel in order to ensure that all formalities are adhered to. 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. Even though maintaining limited liability could prove somewhat cumbersome for certain 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 United States, it may be possible to incorporate a so-called "shelf company". In Thailand, this is not the case, "shelf companies" do not exist in a practical sense due to the accounting and bookkeeping requirements inherent in Thai business regulations. One other issue of note is that the law in Thailand may place criminal penalties upon those who fail to comply with Thai regulations regarding corporate informational reporting.
Due to these rather stringent requirements, those wishing to conduct business in Thailand are well advised to conduct research and due diligence prior to making the decision to invest money or incorporate a legal entity 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 significant when a foreign company wishes to establish a subsidiary in Thailand in the form of a branch office, limited company, or representative office; as there are many legal and tax implications that may arise from multi-jurisdictional corporate transactions.
About the Author
Benjamin Hart is an American attorney, the Managing Director of Integrity Legal (Thailand) Co. Ltd., and International Director of White & Hart Ltd. Please contact +66-(0)2-266-3698 (Thailand), 1-877-231-7533 (USA Toll Free), +44 203-002-3837 (UK) , or info@integrity-legal.com. On the web please see: http://www.integrity-legal.com/company-thailand/amity-treaty.html or http://www.uscompanyregistration.com/business-entity-options.php
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