Considering a partnership business can be a good thing to consider, especially when you are running short of fund. And especially when you are about to start something new in a foreign land having an experienced partner by your side can help you in many ways. Though the type of business partnership is more or less same across the world, the legal nitty-gritty may differ.
If you are planning to start a business in Thailand in partnership, you may have these options;
- Unregistered Ordinary Partnerships
It is an ordinary partnership (contractual) between two or more individuals to jointly invest and undertake a business to share profits and losses derived thereafter. All the partners in an ordinary partnership are liable for the obligations of the contractual relationship.
- Registered Ordinary Partnerships
Any ordinary partnership can be a juristic person if it is registered under the Ministry of Commerce. Usually, a registered ordinary partnership is qualified to own property with the rights to separate from the partners.
- Limited Partnerships
In here, a juristic person typically consists of two groups of partners. Out of the two, one is comprised of the liabilities that are limited to the capital. And another one comprises of those who are jointly liable for the partnership obligations. However, it is only an unlimited liability partner who is able to handle a limited partnership. In case, a limited liability partner engages in the management, then the individual becomes an unlimited liability partner.
Note that a registered ordinary partnership, as well as a limited partnership, can be changed into a private limited company if required.
Once you have decided which partnership will suit you the most, you are always welcome to contact us. We will be delighted to assist you in setting up your partnership business in Thailand.
