New Bill to Allow One Person to Form a Private Limited Company
On 24 January 2017, the Thai Cabinet approved the Establishment of a Private Limited Company by an Individual Person Bill (the Bill).
Under the Bill, to be eligible to establish an entity by a single individual, the applicant must be a Thai national. The company's name must indicate that this is a one-person entity to differentiate itself from a private limited company registered under the existing law. There will also be other specific requirements applicable to this type of entity relating to the corporate particulars, such as capital, directors and objectives.
Given the above requirement concerning owner's nationality, the Bill may not be of much relevance to foreign direct investment in Thailand. From the reasoning, the objective is to enable a small or medium-sized business to be registered as a legal entity without being required to have a business partner. The entity would be recognized as a juristic person in the government database, eligible for governmental supports, especially those intended for small and medium enterprises.
Currently, the Bill is being reviewed by the Council of State, after which it will be returned to the Cabinet for a second approval. The Bill will then be submitted to the National Legislative Assembly for further legislative process.