Evidence Required During Company Incorporation

A newly incorporated majority Thai owned (except 100 % Thai) company is required to prove the financial status of the Thai shareholders.

Keywords: Mazars, Thailand, Legal, DBD

25 January 2013

The DBD has announced Order No. 205/2555 to define new requirements effective from 2 January 2013:

Old Condition

New Condition

1. Shareholding structure

Foreign shareholders hold between 40 % and 50% of the registered capital.

1. Shareholding structure

Any foreign shareholders.

2. Authorised Director

Foreign shareholders hold less than 40% of the registered share capital but there is a foreign authorised director.

2. Authorised Director

100% Thai owned but foreign authorised director.

3. Financial evidence required to be presented by every Thai shareholder:

Certificate issued by a commercial bank;

Bank statement; or

Copy of bank passbook.

3. Financial evidence required to be presented by every Thai shareholder:

Certificate issued by a commercial bank.

 

We note that the purpose of this amendment is to review whether the Thai shareholders’ have sufficient funds to invest in the newly incorporated company.

Please read Order No. 205/2555 for more information.