New rules on incorporation for SME entrepreneurs

The Department of Business Development will launch a new regime that allows the incorporation of a limited company registered by one person, which will take effect this year.

Keywords: Mazars, Thailand, Legal, DBD, SME, Incorporation, Shareholders

27 January 2016

The existing Civil and Commercial Code requires a minimum of three promoters or shareholders for a limited company, but the new regulation will reduce the incorporation procedures, and conform more closely to actual practice, where a company often has one shareholder that actually owns and manages the company.

Under the new regulation, the single shareholder can hold a statutory shareholder’s meeting and pass resolutions himself. The intention of this change in regulations is to encourage SME entrepreneurs to register as legal entities, and to reflect actual business practice.