Thai Business Partnership
Forming a business partnership in Thailand means choosing not just the right people, but the right legal structure, governance rules, and compliance plan. This guide walks through the practical and legal choices — ordinary and limited partnerships, contract-based joint ventures, and Thai limited companies used as partnership vehicles — and then focuses on key contract terms, regulatory traps (Foreign Business Act, BOI, land rules), tax and employment implications, fiduciary duties, dispute avoidance, and an operational checklist. Which “partnership” should you use? In practice, foreign and Thai entrepreneurs use three approaches when they say “partnership”: 1. Ordinary partnership (sahakit am-phoet) — two or more partners carry on business with joint liability. Every partner is personally liable for partnership obligations (unlimited liability). This form is simple and cheap but risky for sizeable commercial ventures because creditors can pursue partners’ personal assets. 2. Limit...