Thai company formation

More documentation required when foreign shareholders are involved

New 2013 business registration rules will require all new companies with foreign shareholdings involved to declare the sources of funds used to finance the company shares. The new rules, which will take effect January 2013, are aimed at preventing the use of Thai nominee shareholders by foreigners.

All provincial and local business registration offices must now, when confronted with a company registration with any foreign shareholders involved, or a foreign director authorized to sign or co-sign in behalf of the companay, ask for evidence from the Thai shareholders how they paid for their shareholding, even when the foreign shareholding in the Thai company to be registered is only 1%. Under the previous business registration rules this was only required when a foreigner held more than 39% of the shares.

The above is a tightening of the initial 2006 business registration rulesread more...