Pressured by the Ministry of Commerce, the newly appointed Thai Government showed a positive sign directed to various investors both inside Thailand and all around the world. Many restrictions regarding company laws & regulations will be simplified or suppressed, in order to facilitate foreign investment that requires most of the times a shared capital thai company. Changes were published officially on March 3 and will take force on next July, 1st.
One of the most important points addressed is the reduction from 7 minimum, to 3 shareholders to form a thai Limited company. This is likely to stop the illicit and awkward use of nominees. Future so as existing companies will be able to apply for the change.
In a further step to ease and speed up company forming, the integration process will be possible in 1 day instead of 9 currently, proven all requirements are met during the statutory meeting leading to the M.o.A.
Furthermore, company decisional process will be widely eased; changes impacting company life like: change of location in another province, capital changes, business objectives or statutory rules modifications,... currently require a special resolution and double confirmation in two other ubsequent shareholders meetings. This heavy process took at least 21 days and enticed companies to widely use antidated meetings reports.
Next process will allow such decisions to be taken during one meeting, proven it is voted by 75% of the shareholders present and subject to vote.
Another simplification will allow partnerships with unlimited liability to turn into limited companies, following specific requirements anyway.
The business community, be it thai or foreign, will certainly appreciate this rapid and effective move regarding its current expectations in the matter.
