Thai Company Law Changes

Thai Company Law Changes

Thai Company Law Changes

Changes had been made to the Civil and Commercial Code of Thailand in the later part of 2009. These changes had been made to simplify the company registration procedures in Thailand.

Many businesses and law firms in Thailand over the past 3 years have complained to the Ministry of Commerce that the registration of companies in Thailand is not only too complex but not easy to understand. The Ministry of Commerce in 2008 made changes to the Company Registration process in Thailand but that has complicated matters even more. In 2009 the Ministry of Commerce again made changes to not only make the process simple but also to ensure that the improvements would not end up like they had in 2008 when it made the process more complicated and tiresome.

The complaints lodged with the Ministry of Commerce were as follows:

1. The publication of annual general meetings was seen as outdated and tiresome;

2.  Proscription of proxies for board meetings which was viewed as unnecessary;

3. Restrictions on certain partnerships.

The new draft is rather interesting as it takes into account what people have been complaining about.

1. Directors can now attend annual meetings via telephone so proxies are not needed;

2. If a company is not registered in 10 years the memorandum of association would become invalid;

3. The Ministry of Commerce can now exempt fees;

4.  Annual meetings now only need to be sent via registered m,ail to shareholders and not advertised.

The changes have been very good as it has made owning and managing a Thai company much easier than before. If you are looking at registering a Thai company in Thailand then speak to any of our solicitors in Phuket or Bangkok. Call us on our toll-free US and UK telephone numbers to speak to us with regards to changes in Thailand. Call one of our solicitors today.

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