Page 50 - Introduction to Investment Laws in Thailand

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and unlimitedly liable for all the partnership obligations. The ordinary
partnership can choose to register their partnership with the government
or not. In most cases, an ordinary partnership is the flexible form of initial
business to start operating without registering their form of business. The
Limited partnership must be established with the registration with the
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government. The limited partnership is different from the ordinary
partnership by that in establishing the limited partnership, any partners
can choose two options of 1) one or more partners whose liability is
limited to such amount as they may respectively undertake to contribute
to the partnership or 2) one or more partners who are jointly and
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unlimitedly liable for all the obligations of the partnership. In operating
business by partnerships, it is recommended to register the partnership
with the government to prevent the potential risks of legal disputes over
the partnership or the third parties who are the contractor of the
partnership.
Limited company is a type of business that is formed with capital
investment divided into shares. The liability of the shareholders is limited
to the amount of the shares respectively held by them. The limited
company must be established from three or more people by subscribing
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their names to a memorandum to set up a limited company. In most
cases, the persons will meet with their interest persons to do business in
the form of a limited company. After the meeting to establish the
company, the director of the company has to request all the parties who
wish to be shareholders of the company with not less than 25% , as
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provided by the prospectus, notice, advertisement, or invitation. If the
shares have been paid up to 25%, the director must apply for the company's
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registration with the government agency. It is noted that the limited

51 Thai Civil and Commercial Code Section 1025
52 Thai Civil and Commercial Code Section 1078
53 Thai Civil and Commercial Code Section 1077
54 Thai Civil and Commercial Code Section 1097
55 Thai Civil and Commercial Code Section 1110
56 Thai Civil and Commercial Code Section 1111

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