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Another Attempt to Introduce the Single Shareholder Company in Thailand
- Publisher
- Nagashima Ohno & Tsunematsu
- Journal /
Book - NO&T Thailand Legal Update No.6 (October, 2020)
- Reference
*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.
Background
The concept of a single shareholder company (the “Company”), i.e. the corporate model where a private limited company is allowed to have only one shareholder, has been discussed in Thailand for a long time. In September 2020, a bill regarding the Company (the “Bill”) was reopened for public hearing for the fourth time by the Department of Business Development, Ministry of Commence, and the bill was recently approved by the Council of the State.
As a general rule, the Civil and Commercial Code of Thailand prescribes that there must be a minimum of three (3) shareholders in a private limited company. On the other hand, the Bill, if enacted, will reduce such requirement to one (1) shareholder. This will allow one (1) person to own and operate the Company in response to the modern business and investment trends.
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