Corporations in Thailand and the United States

The following post delves into the topic ofendeavor. Couple this with the fact that there are
company incorporation in the context ofa great many legal restrictions placed upon foreign
jurisdictions within the United States and thenationals doing business in Thailand and one is left
Kingdom of Thailand.with little option, but to seek competent Thai legal
As the world becomes increasingly integratedcounsel in order to adequately protect one's
through the process of globalization it becomespersonal as well as corporate interests.
evermore imperative to understand theOne area where Thailand's system of corporate
comparative benefits of company incorporation ingovernance differs sharply from that of the USA
different jurisdictions. Furthermore, asis corporate record maintenance. In the USA, it
corporations (big and small) require moremight be possible to incorporate a so-called "shelf
international presence in order to adequatelycompany". In Thailand, this is not the case, "shelf
conduct business it is increasingly urgent to have acompanies" do not exist in a practical sense due
basic understanding of the legal peculiaritiesto the accounting and bookkeeping requirements
specific to certain jurisdictions.inherent in Thai business regulations. Another issue
In many jurisdictions within the United States ofof note is that Thai law may place criminal
America it is relatively simple to establish certainsanctions upon those who fail to comport with
corporate structures. Although, those wanting toThai regulations regarding corporate information
establish a company in America are prudent toreporting.
seek competent legal advice in order to ensureDue to these rather stringent requirements, those
that all formalities are duly met. Also, awishing to conduct business in Thailand are well
competent attorney can provide guidance as toadvised to conduct research and due diligence
the best type of corporate structure based uponprior to making the decision to invest money or
the type of business to be conducted. In someincorporate a legal entity within the jurisdiction. In
cases, an American attorney can provide advicea number of cases, it may be a good idea to
regarding possible tax issues as well as the legalretain a Thai attorney to provide advice regarding
obligations and privileges arising from thethe best way to incorporate a Thai company. This
establishment of a corporation.is even more significant when a foreign company
In many respects, it is relatively easy to obtainwishes to establish a subsidiary in Thailand in the
limited liability in most of the jurisdictions of theform of a branch office, limited company, or
USA. Even though maintaining limited liability couldrepresentative office; as there are many legal and
prove somewhat cumbersome for certaintax implications that may arise from
individuals and corporations. In Thailand, establishingmulti-jurisdictional corporate transactions.
a limited company can be a very difficult