Evidence to Prove the Payment of Share Capital
The Department of Business Development announced new regulations effective from 5 January 2015 that require a limited partnership and/or company to submit additional documentation when setting up or increasing its registered capital with the paid-up capital / share payment at Baht 5m or more.
Keywords: Mazars, Thailand, Legal, Incorporation, Share Capital, DBD, Limited Partnership
21 January 2015
a) Written evidence issued by a commercial bank verifying that the shareholders have paid the share capital into the bank account of the limited partnership and/or company (if the shareholders’ meeting resolved that the shareholders shall pay for the subscribed shares by cash) (article 2 (1) and 3 (1) of the regulation); or
b) Copies of deeds proving that the limited partnership and/or company owns the immovable properties or registered assets (in case the shareholders’ meeting resolved that the shareholders can pay for newly subscribed shares by assets). When subscribing for shares with movable assets, the applicant shall provide evidence that details the assets and their values (article 2 (2), (2.1-2.2) and 3 (2) (2.1-2.2) of the regulation).
The above regulations will also apply to newly established limited partnerships and/or companies too. The applicant shall be required to submit to the registrar the commercial bank documents and/or evidence to support the investment of the assets within 15 days or 90 days respectively from the registration date.
Therefore, when establishing a new partnership or company, opening a bank account and setting the date for the shareholders to transfer the share capital should be one of the first considerations.
As yet, the Department of Business Development has not announced the penalty to be imposed should the applicant be unable to comply with the above regulations.
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