New amendments make it easier to set up companies in Thailand
The government has adjusted requirements for the registration of limited partnerships and mergers in a bid to ease the setting up of startups.
Deputy government spokesperson Trisulee Trisaranakul said on Friday that amendments to the Civil and Commercial Code now allow a limited partnership to be registered in the name of two people instead of three.
The amendment was announced on November 8, 2022, and went into effect 90 days later, on February 7.
Trisulee added that the amendment also makes way for modern technology by allowing board meetings to be conducted online and inviting shareholders to a general meeting via online channels instead of announcements in local newspapers.
The amendment also stipulates that the memorandum of association (MoA) will expire in three years if the company does not complete its registration process in time. This move should benefit companies that want to use the same name as listed in the MoA.
The code also acknowledges a new type of business merger – assimilation – in which one company keeps its juristic entity status after merging with another company, which loses its status. Under the new stipulation, merging parties will no longer have to register as a new company after the merger.
The amendment also includes a new protection clause for shareholders. Now, the payment of dividends must be completed within one month after a general meeting or directors’ voting session. Before this, the law did not specify a deadline.
Details of the amendment in Thai can be read here.
