The activity will be conducted through a joint venture, which involves two or more companies pooling their resources and expertise to achieve a particular objective. The risks and benefits of the venture are also shared. Reasons for forming a joint venture may be to expand a business, develop new products, or enter new markets, especially overseas.
Your business may have strong growth potential, and you may have innovative ideas and products. However, a partnership can give you:
|➤ More resources
|➤ More capabilities
|➤ Greater technical expertise
|➤ Access to established markets and distribution channels
Typically, the two companies are contractually linked by a joint venture agreement. This company’s provisions are defined by the Thai Civil and Commercial Code in Articles 1064 and the following.
The limited partnership has a legal personality. The limited partnership has the particularity of allowing a separation between the management of the company and the holding of its share capital. Thus, in a limited partnership, two categories of partners must be distinguished:
|The partners in name:
|Play an active role in the company. As a result, they have the status of traders and their liability is unlimited. In return, they receive a larger share of the company's profits
|Play a passive role in the company (capital contribution). Consequently, they do not have the status of a merchant and their liability is limited to the number of their contributions
The structure of a limited partnership differs from that of a limited liability company without its structure and the responsibility of the shareholders.
A certain number of partners and associates: 2 shareholders are required to form the partnership.
Minimum and/or maximum capital: no minimum amount is required. However, a registered capital of THB 2,000,000 is required per work permit for foreigners.
Liability of partners: The liability is limited to the contributions for at least one person and unlimited for the others. The liability is total for at least one or more partners.
Registration of the company: The company must be registered with the DBD. The registration procedure can take between 3 and 5 days. The name of the company must also be reserved in advance.