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Company Registration in the USA and Thailand

By Ben Hart

Republish: EasyPublish™ Published: 19Aug2010 Word count: 462 Viewed: 261 time(s) Get Free Content For Your Site

The following article compares and contrasts the process of setting up a company in the United States of America and the Kingdom of Thailand.

As the world becomes increasingly integrated through the process of globalization it becomes evermore imperative to understand the comparative benefits of company incorporation in different jurisdictions. Furthermore, as corporations (big and small) require more international presence in order to adequately conduct business it is increasingly urgent to have a basic understanding of the legal peculiarities specific to certain jurisdictions.

In many jurisdictions within the United States of America it is relatively simple to establish certain corporate structures. That said, those wishing to setup a company in the USA are well advised to seek legal counsel in order to ensure that all formalities are adhered to. Also, a competent attorney can provide guidance as to the best type of corporate structure based upon the type of business to be conducted. In some cases, an American attorney can provide advice regarding possible tax issues as well as the legal obligations and privileges arising from the establishment of a corporation.

In many respects, it is relatively easy to obtain limited liability in most of the jurisdictions of the USA. Although maintaining limited liability could prove somewhat cumbersome for some individuals and corporations. In Thailand, establishing a limited company can be a very difficult endeavor. Couple this with the fact that there are a great many legal restrictions placed upon foreign nationals doing business in Thailand and one is left with little option, but to seek competent Thai legal counsel in order to adequately protect one's personal as well as corporate interests.

One area where Thailand's system of corporate governance differs sharply from that of the USA is corporate record maintenance. In the United States, it may be possible to incorporate a so-called "shelf company". In Thailand, this is not the case, "shelf companies" do not exist in a practical sense due to the accounting and bookkeeping requirements inherent in Thai business regulations. Another issue of note is that Thai law may place criminal sanctions upon those who fail to comport with Thai regulations regarding corporate information reporting.

Due to these rather stringent requirements, those wishing to conduct business in Thailand are well advised to conduct research and due diligence prior to making the decision to invest money or incorporate a legal entity within the jurisdiction. In some cases, it may be best to retain counsel to provide advice regarding the best way to incorporate a Thai company. This is even more important where a foreign company seeks to setup a Thai subsidiary in the form of a limited company, branch office, or representative office; as there are many legal and tax implications that may arise from multi-jurisdictional corporate transactions.

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