Bangkok Base News & Views

As of July 1 2008, establishing & operating a business in Thailand became more streamlined……but are the new enhancements to Thai company law genuinely beneficial to private companies?

In the wake of legislative “modernization” initiatives to the Civil & Commercial Code (CCC), most SMEs wishing to establish operations in Thailand will find that the simplified regulatory requirements will deliver efficiencies and lessen barriers to entry.

Thanyakamon Limakunawoo who heads up Bangkok Base’s Legal unit, said that the changes were not only welcome, but reduce red tape that her clients have frequently found inhibiting when establishing a business here.

As Thailand’s premier one-stop-shop for new entrants into the Thai market, providing serviced offices, full accounting & legal services (incl. co. registration, licences & work permits), Bangkok Base welcomes the company law enhancements. Ms Limakunawoot is confident they will assist her organisation to deliver an even more attractive “set-up” service to its clients.

Much has been written and said elsewhere about the specific CCC changes, but a succinct summary is available in AustCham Thailand’s June ’08 edition of Advance magazine. AustCham can be contacted in Bangkok on 02 210 0216.

Some key enhancements to the law include:

• The reduction of the minimum number of promoters and of shareholders from 7 to 3
• Incorporation within one day, instead of the current minimum of 9 days – subject to specific conditions
• Notification of shareholder meetings – amended rules as to how the notice is to be communicated
• Announcement of dividends. Notification via newspaper notice no longer required. Shareholders to be notified directly by mail. Shares issued in bearer form must however still be announced in a local newspaper as well.