Set Up a Joint Venture in Thailand

Updated on Monday 06th February 2017

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According to the Thai legislation, it is permitted to set up a joint venture in Thailand. Our specialists in company registration in Thailand present below  the two types of joint ventures available in the country:

1.    A joint venture under the form of a partnership agreed by contract between one business and another one, or juristic partnership or individuals which is formed only for a specific project. Even if not registered as a legal entity, an “unincorporated joint venture” is considered as a juristic business by the Revenue Department for tax liability purposes. Thus, the joint venture has to apply for a taxpayer identification card and value added tax certificate if it does a business which is subject to VAT and is predicted to earn an income greater than THB 1.8 million in a fiscal year.

2.    A joint venture can be registered as a legal company, under the form of a limited company in which the joint venture partners own shares in an agreed percentage. 
 

Registration procedure of joint ventures in Thailand


The registration procedure and fees for setting up a joint venture in Thailand are the same as those of the formation of an ordinary limited business. Our company formation advisors can provide you more information on the company registration procedure in Thailand.
 

Management of joint ventures in Thailand 


Commonly, there are no requirements on the nationality or residency status for directors when setting up a joint venture in Thailand. Exempt to this rule are businesses looking permission to do business listed under List 2 of the FBA (Foreign Business Act), in which case at least two-fifths of the entire number of directors have to be Thai nationals. The restriction on nationality could also be applied under certain laws like the Insurance Act, Air Navigation Act, Thai Vessel Act, Business Act and others. When setting up a joint venture in Thailand under Thai-US Treaty protection, a majority of its directors have to be American and/or Thai citizens. For an unincorporated joint venture, which is considered as a partnership, if the managing partner is a foreign citizen, the partnership would be considered an alien and is subject to foreign ownership restrictions under FBA.

If you need to know more, please contact our company formation advisors in Thailand

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