A limited partnership is suitable for say a husband and wife team or when one has a small business like a Bookshop or restaurant. For foreigners, this may be ideal but the problem is it does not cover your liability as well as a company. A partnership can be one foreigner & one or more Thais but the Thai is always the Director or Managing Partner. Once formed you still need a work permit and the fees become similar to a Company including taxes etc. If you are thinking long term and diversifying your business it is best to have a company as you can then take the company with you and use it for your next business. The problem you may experience having a limited partnership is the liability factor.
If your partner borrows you may have to settle the debt so in fact there are limitations using a partnership as opposed to a company. It does not protect you.
Thailand recognizes three types of business organizations:
Thai and western partnership are basically the same. Thailand provides for 3 types of partnerships:
Both partners have unlimited liability. An ordinary partnership may be registered - in which case their business is considered a separate legal entity - or unregistered. The advantages to registering an ordinary partnership are that the assets must be examined before creditors can claim debt payment from the partnership and the liability of any partner is limited to two years from the date ceased being a partner. Needless-to-say, all the terms of any partnership should be put in writing prior to setting up the business.
One or more partner's liability is limited to the amount of investment in the company and the other partner's liability is unlimited. A limited partnership is registered and becomes an independent legal entity. A limited partnership can be managed by an unlimited liability partner. If a limited liability partner manages the organization, liability becomes unlimited. The prime advantage of a limited partnership is that creditors cannot sue individual partners (although they can sue the company as a whole) unless the partnership is dissolved. New partners may only be entered into the partnership with the consent of all partners.
Wondering what we can do for you? We can help you with our expertise and extensive knowledge in setting up a company in Thailand. It is not an easy process, especially for foreigners. But with the introduction of new government incentives, the process has been made easy. They offer tax allowances to and easy access to work permits. The services we provide includes:
Doing business in Thailand is very complex and might take many weeks to complete the process. The reason behind this is the language. It is compulsory that the documents, forms of registration process must be in the Thai language.
The reason why Sunbelt is the best is that along with the company registration services we offer some other services as well. When you choose us to work with, we make sure that the whole process is made easy for you. Our counselors will review the whole registration process. We can take care of all the legal requirements of setting up a company. Our experts have been working in this industry for many years. They have experience and can provide you appropriate advice on doing business in Thailand efficiently. Another thing what we can do for you is we can help you get a work permit and Thai visa at the same time.
Therefore, we offer full service and guidance when registering a partnership in Thailand.
Foreign Business License
US Treaty Of Amity
Thailand Work Permit
Closing a Thai Company