After the company’s structure was decided, the next thing to be set up is the share, which is divided to be an equal value, called par. Par value must be at least Baht 5 per share without restriction on maximum value. The share capital is the amount of investment made in the company by shareholders in order to accomplish its business undertakings.
Share certificates in Thailand
All shareholders must have a share certificate, after they were registered and recorded as owners at the Business Registration Department. Attention is to be required to the fact that not everyone who has a share will also have a share certificate. Only the one officially registered as the owner with the Business Registration Department as the shareholder will. If interested in how you can obtain a share certificate, please contact our lawyers in Thailand.
The fixed share capital of the company is not to be altered. Only an official combination of the memorandum of association in one of the methods approved by the Civil and Commercial Code.
Types of share capital in Thailand
The Thai Civil and Commercial Code highlights that there are two types of share capital in Thailand. Firstly, ordinary shares or common shares state that ordinary shareholders have common rights and also owe duties to the company. Ordinary shares provide voting rights and one share means one vote in business meetings. Particularly, shareholders will be returned the initial investment in the company if they sell their shares or if the company falls into liquidation.
The second type of share capital in Thailand is the preference shares state that the shareholders have some special rights. In the case of liquidation, the preference shareholders have priority over the ordinary shareholders. So they will the first to be given back their invested money. Ordinary shareholders can even be left unpaid if there are not sufficient funds to reimburse them. On the other hand, if a shareholder has completely paid up his shares, he will no longer be responsible for any debts of the company.
Moreover, the minimal share capital in Thailand when incorporating a limited company is 100,000 THB. When it comes to a foreign Thai limited company, the minimal share capital required for incorporation of the company is 2,000,000 THB.
In order to obtain more information about the share capital in Thailand for all types of companies, please contact our Thailand lawyers.