Saturday, October 14, 2017

Thailand - challenge by establishment

To establish company in Thailand for foreign investor is a challenge due to ownership structure. Investors prefer fully foreign owned entities or at least an entity they can control. The idea behind is the providing of the knowledge and funding for the business and risking the outcome of the investment.

It is always important to read what is in By-laws, Articles of association, Shareholders agreement and other documents your lawyer will offer you to sign. You may easily loose control over your investment and even to be punished for protecting your interest. To ensure even deeper challenge on a market Thai courts are known for being too slow and protecting local companies and citizens. Therefore an arbitrage option is always good to have inside.

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