Integrity Legal

Those researching business and corporate entities in Thailand (sometimes referred to as Thai juristic persons) often come upon information pertaining to Thai partnerships. Partnerships in the Kingdom of Thailand are different from Thai limited companies and Thai sole proprietorships for a number of reasons. For example, Thai limited companies provide the shareholders with limited liability. This means that liabilities incurred by a Thai limited company do not generally flow through to the individual shareholders (that said, under some circumstances, directors of Thai companies may have some legal liability to the company itself). Depending upon the type of Thai partnership, the partners may or may not have limited liability. Thai Partnerships differ from Thai Sole Proprietorships for a number of reasons, but the most obvious difference is that Thai Sole Proprietorships, as the name suggests, are operated by one natural person.

In the Kingdom of Thailand, there are different types of partnerships: Thai Ordinary Partnerships, Thai Registered Ordinary Partnerships, and Thai Limited Partnerships. In this posting only ordinary partnerships and registered ordinary partnerships will be discussed as Thai limited partnerships will be discussed in a later posting.

Thai Ordinary Partnerships

Thai ordinary partnerships are sometimes referred to as unregistered partnerships. The name “unregistered partnership” may stem from the fact that Thai ordinary partnerships are not required to have a written partnership agreement and even where a written partnership agreement exists it is not required that the aforementioned agreement be registered. That being stated, ordinary partnerships are still required to register their existence as a business entity with the Thai Ministry of Commerce. However, notwithstanding the fact that an ordinary partnership has registered with the Ministry of Commerce, this type of registration should not be construed to mean that the partnership is a Thai registered ordinary partnership. All partners in a Thai ordinary partnership have unlimited liability for the acts of any of the other partners which occur in the course of the partnership’s business. Creditors of an ordinary partnership may make claims against the property of any of the partners and do not need to first make a claim against the assets of the partnership.

Thai Registered Ordinary Partnerships

Thai Registered Ordinary Partnerships must be registered with the Ministry of Commerce in the Kingdom of Thailand. When registering this type of partnership a copy of the written partnership agreement, information regarding capital contributions as well as managerial duties of the partners, and objectives of the partnership must be included in the application for registration. In the eyes of Thai law, a registered ordinary partership is viewed as a distinct entity separate and apart from the partners. However, the legal distinction between the registered ordinary partnership and the partners as individuals should not be construed to mean that the partners have limited liability. That stated, if a claim is to be made by a creditor against a Registered Ordinary Parntership, then the creditor must first seek to make their claim against the assets of the Registered Ordinary Partnership before making a claim against either of the individual partner’s assets.

There are significant differences in the way in which registered ordinary partnerships and ordinary partnerships are taxed in the Kingdom of Thailand. Therefore, those interested in establishing either of these types of partnerships are encouraged to contact a legal professional in Thailand to ascertain whether either of these types of structures are suitable.

It should also be noted that foreign nationals wishing to set-up a Thai Registered Ordinary Partnership or a Thai Ordinary Partnership may be barred from doing so pursuant to the provisions of the Thai Foreign Business Act. In some cases, a Thai Foreign Business License may be obtained depending upon the type of business the foreign nationals wish to undertake through use of a Thai partnership. American citizens wishing to set-up a Thai partnership (either a registered ordinary partnership or simply an ordinary partnership) may obtain certification for their proposed partnership pursuant to the terms of the US-Thai Treaty of Amity, provided that the proposed business activity is not restricted under the terms of the Treaty; and, upon being approved for a Treaty certificate, operate their partnership notwithstanding the provisions of the Foreign Business Act.

For related information please see: Thailand Company Registration.

Tags: Amity Treaty Certificate, Company Registration Thailand, Company Thailand, Foreign Business Act, Foreign Business Act Thailand, Ordinary Partnership, Registered Ordinary Partnership, Sole Proprietorship Thailand, Thai Company Registration, Thai Foreign Business Act, Thai Limited Company, Thai Limited Partnership, Thai Ordinary Partnership, Thai Registered Ordinary Partnership, Thai Sole Proprietorship, Thai unregistered partnership, Thailand company registration, Thailand Foreign Business Act, Thailand limited company, Thailand Limited Partnership, Thailand Ordinary Partnership, Thailand Registered Ordinary Partnership, Thailand Sole Proprietorship, Thailand unregistered partnership, Treaty of Amity, United States Thailand Treaty of Amity, unregistered partnership, US-Thai Treaty of Amity
Posted in Thailand Business | No Comments »

Limited Companies in the Kingdom of Thailand

Thai Limited Companies are somewhat similar to limited liability companies in jurisdictions such as the United States, the United Kingdom, or the European Union. However, there are certain formalities which must be adhered to in order to be certain that a Thai company is properly registered. First, a name for the company must be reserved and approved by the Thai Ministry of Commerce and then three shareholders must be utilized in order to meet the requirements for Thai company registration. Meanwhile, depending upon the type of business or the presence of possible future foreign employees certain capital requirements must be met (those wishing to register a Thai Limited Company are encouraged to ascertain the exact amount of capital necessary for a certain type of business before taking steps toward registration). Foreign nationals wishing to register a company in Thailand should note that some types of business are restricted under the provisions of the Foreign Business Act. It should be noted that usage of Thai nominee shareholders to hold shares of a Thai limited company on a foreign national’s behalf solely for the purpose of avoiding conflict with the provisions of the Foreign Business Act is strictly prohibited. American Citizens wishing to register a Thai company or American Companies wishing to set-up corporate offices in Thailand may be eligible to receive certification under the provisions of the US-Thai Treaty of Amity and therefore be in compliance with the Foreign Business Act and other applicable Thai law as companies with Treaty of Amity certification are accorded “National Treatment”.

An issue that may be of interest to those weighing the option of registering a company in Thailand: the corporate tax rate  for small companies making over one million baht per year has been reduced from 23% to 20% as of 2013, according to the official wesite of the Revenue Department in Thailand.

Sole Proprietorships in the Kingdom of Thailand

A sole proprietorship is defined as a business enterprise in which one natural person is the owner. It should be noted that sole proprietorships, unlike Thai limited companies or Thai limited partnerships, provide no limited liability to the owner and therefore the owner’s liability with respect to those conducting business with the sole proprietorship is unlimited.  There are some possible tax benefits arising from operating a sole proprietorship since the sole proprietor may be taxed progressively in much the same way as a natural person. In certain cases, a sole proprietor could opt to be taxed based upon gross receipts, minus a standardized deduction. However, those interested in this type of structure are well advised to contact professionals in order to ascertain further information about whether this type of structure can be utilized for one’s proposed business and the possible tax liabilities of such a proposition.

It should be noted that a sole proprietorship may not be feasible for most foreign nationals wishing to conduct business in Thailand pursuant to the provisions of the Foreign Business Act. It may be possible to obtain a foreign business license for a sole proprietorship in Thailand and thereby maintain compliance with the Foreign Business Act, but such licenses are examined on a case by case basis based upon the type of activity the sole proprietor wishes to conduct. For American Citizens it may be possible to obtain certification for a Thai sole proprietorship pursuant to the provisions of the US-Thai Treaty of Amity.

For related information please see: Thailand Company.

Tags: Amity Certification Thailand, Amity Company Thailand, company in Thailand, Corporate Income Tax Thailand, Corporate Tax Rate Thailand, Foreign Business Act, Foreign Business Act Thailand, Limited Liability Company, Sole Proprietorship, Thai Corporate Tax, Thai Limited Company, Thailand company, Treaty of Amity, US-Thai Treaty of Amity
Posted in Thailand Business | No Comments »

It recently came to this blogger’s attention that the dynamics of Sino-ASEAN (Association of Southeast Asian Nations: Brunei Darussalam, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, Malaysia, and Vietnam) relations has been a topic of discussion. In order to provide further insight into these matters it is necessary to quote directly from the official website of Bernama at Bernama.com.my:

KUALA LUMPUR, October 3 (Bernama-AsiaNet) — The economic relation between China and the ASEAN is very close despite the territorial disputes in the South China Sea. The establishment of the China and ASEAN Free Trade Area creates the world’s largest free trade area that comprises developed countries and has 1.9 billion consumers, a GDP of nearly US$6 trillion and foreign trade totaling US$4.5 trillion…

This blogger asks readers to click upon the hyperlinks noted above to read this article in detail.

It would seem that many feel as though there will likely be further economic benefits derived from further economic cooperation between China and the countries which comprise ASEAN. In the context of specific countries, such as Thailand, this benefit may be further magnified by bilateral relations with the US. Thailand maintains a strong economic relationship with the United States as enshrined by the US-Thai Treaty of Amity. Bearing this in mind, the dynamics of Asian economics is subtle and multifaceted. That stated, there are many indications that the economies of Asia will continue to economically thrive in the future.

In news pertaining to travel matters in the United States it recently came to this blogger’s attention that the Transportation Security Administration (TSA) has been recently analyzed for what appears to have been an invasive pat down of a woman who had been afflicted with breast cancer. In order to provide further information regarding this situation it is necessary to quote directly from a posting by Lori Dorn via Boing Boing on the website Gizmodo.com:

Lori Dorn, the wife of Laughing Squid’s Scott Beale, recently submitted to a backscatter scan at JFK airport. The TSA pulled her aside for a breast patdown, even though she stated she had breast implants in place after her bilateral mastectomy. Of course, that didn’t stop them. They didn’t even let her take out the Device Identification Card that would could have explained where the implants came from and their medical purpose. No. Instead they humiliated her in public…

The administration of this web log strongly encourages readers to click upon the aforementioned hyperlinks to read more from this interesting article.

In this blogger’s mind, there is no question that security should be a concern for travelers both in the US and abroad. However, usage of the term “security” as an umbrella term to allow for the humiliation of a breast cancer survivor seems rather draconian especially in light of the fact that the woman in question apparently had a Device Identification Card for just such occasions seems perplexing, to say the least. Hopefully measures will be taken to provide some sort of protection for travelers with disabilities so as to address safety concerns while simultaneously preventing humiliation while traveling.

– Benjamin Walter Hart

For information pertaining to legal services in Southeast Asia please see: Legal.

Tags: ASEAN Free Trade Area, ASsociation of Southeast ASian Nations, breast patdown, Brunei Darussalam, Cambodia, China and ASEAN Free Trade Area, Device Identification Card, Indonesia, JFK airport, Laos, Malaysia, Myanmar, Philippines, Singapore, Sino-ASEAN relations, South China Sea, Thailand, Transportation Security Administration, TSA, US-Thai Treaty of Amity, Vietnam
Posted in ASEAN Business, Transportation Security Administration (TSA) | No Comments »

It recently came to this blogger’s attention that the President of the Philippines has voiced his belief in the advisability of further integration of the economies in the countries which comprise the Association of Southeast Asian Nations (ASEAN: Brunei Darussalam, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, Malaysia, and Vietnam). In order to provide further insight into these comments it is necessary to quote directly from the official website of Asia One at AsiaOne.com:

Asean must take advantage of opportunities at a time when the world’s traditional growth centres are slowing down, Philippine President Benigno S Aquino III yesterday said. At the close of Asia Inc Forum’s Asean 100 Leadership Forum here, Aquino said for Asean to grow further, it is necessary for the member states to work together to continue to maintain peace, stability and an environment that attracts investments. “I am aware that the diversity in Asean makes it difficult to completely agree with one another on some issues, but this has not stopped us from collaborating on the economic front, and integration has always helped us push our economies.”

This blogger encourages readers to click upon the hyperlinks noted above to read this interesting article in detail.

There seem to be few who question the soundness of the idea that economic integration in ASEAN would provide benefits to the citizens of all of the economies at issue. That stated, ASEAN is a unique regional bloc due to the fact that it has utilized a relatively slow economic integration process which has allowed the participating members to provide mutual benefits to one another while simultaneously allowing the member nations to respect the views of each other regarding national interest and foreign policy, especially in a global context.

Meanwhile, another ASEAN member; specifically the Kingdom of Thailand, has recently been the topic of an article about that nation’s relationship with the United States. In order to provide further context it is necessary to quote directly from an article by Walter Lohman posted to the official website of The Heritage Foundation at Heritage.org:

The administration of this web log asks readers to click upon the aforementioned hyperlinks in order to read this article in detail.

This blogger must take note of the rather precise understanding of the complex interplay of relationships between Asian countries in the context of global diplomacy. It is especially gratifying to see that type understanding in an analysis of US-Thai relations. A prime example of how some such relationships smoothly operate over time can be viewed in an analysis the relationship between the United States and Thailand. The US-Thai Treaty of Amity has proven to be a useful platform for Thai-American business while simultaneously having the ancillary benefit of providing new business opportunities in the economies of the surrounding nations. Hopefully the same trend will continue and similar situations will arise in the other ASEAN economies which foster and facilitate sustainable regional growth for the whole of ASEAN.

For information pertaining to procurement of legal services in the Kingdom of Thailand or the Greater ASEAN region please see: Legal.

Tags: ASEAN, Asean 100 Leadership Forum, ASEAN Business, ASEAN economies, ASsociation of Southeast ASian Nations, Brunei Darussalam, Cambodia, China, Cold War, economic front, foreign policy, grand strategy, Indochina, Indonesia, Korean Peninsula, Laos, Malaysia, Myanmar, national interest, Philippine President Benigno S Aquino III, Philippines, rapprochement, Singapore, Thailand, Thailand Business, Treaty of Amity and Commerce in 1833, U.S.–Thai alliance, US-Thai Treaty of Amity, Vietnam
Posted in Amity Treaty, ASEAN Business, China Business, Thailand Business | No Comments »

It recently came to this blogger’s attention that the National People’s Congress in China has apparently ratified a protocol regarding that nation’s Treaty of Amity with the Association of Southeast Asian Nations (ASEAN). In order to provide further insight it is necessary to quote directly from the official website of Xinhua, XinhuaNet.com:

BEIJING, Aug. 26 (Xinhua) — The Standing Committee of the National People’s Congress (NPC), or China’s top legislature, on Friday ratified the Third Protocol Amending the Treaty of Amity and Cooperation in Southeast Asia. According to Vice Foreign Minister Cui Tiankai, ratifying the protocol will help exhibit China’s political support for the Association of Southeast Asian Nations (ASEAN) and boost ties between China and the European Union. Cui was entrusted earlier by the State Council to brief the NPC Standing Committee on the basic information of the protocol. The Treaty of Amity and Cooperation in Southeast Asia was signed in February 1976. It was one of the basic political documents of the ASEAN…

This blogger asks readers to click upon the hyperlinks noted above to read this article in detail.

It should be noted that the United States of America and the Kingdom of Thailand maintain the US-Thai Treaty of Amity which could be described as similar to the aforementioned Sino-ASEAN agreement mentioned above. There has been recent speculation regarding the future of both the Chinese and ASEAN jurisdictions’ economies with many noting the possibility of a very bright economic outlook for both locations as well as Greater Asia as a whole. Meanwhile, there has been speculation that ASEAN could see a unified ASEAN visa scheme, but such developments have yet to come to fruition.

In news related to the struggle for LGBT equality it recently came to this blogger’s attention that some of the Citizens of the sovereign State of Maryland have recently petitioned one of their Senators regarding the so-called “Defense of Marriage Act” (DOMA). In order to provide further insight it is necessary to quote directly from the website of On Top Magazine, OnTopMag.com:

More than 3,000 people have signed on to a petition urging Maryland Senator Barbara Mikulski to co-sponsor a bill that would seek to repeal the Defense of Marriage Act (DOMA), which forbids federal agencies from recognizing the legal marriages of gay and lesbian couples. Freedom to Marry will present Mikulski with the petition on Friday at 3PM, the group said in an email to On Top Magazine. “Recent census data show nearly 17,000 same sex couple living across the state of Maryland,” Freedom to Marry President Evan Wolfson said in a statement. “These loving, committed couples and their families are harmed every day by the denial of marriage, and by federal discrimination against the marriages they are able to celebrate across the border in the District of Columbia and six other states.” “We hope that Senator Mikulski will heed the call of her constituents and join us in ending marriage discrimination at the federal level and in Maryland,” he added…

The administration of this web log asks readers to click upon the relevant hyperlinks noted above to learn more from this interesting article.

Frequent readers of this blog may recall that the provisions of DOMA currently preclude visa benefits such as the CR-1 visa, the IR-1 visa, and the K-1 visa to those in a same sex marriage even if said marriage has been legalized and/or solemnized by one of the sovereign American States which recognize such unions. Federal Legislators such as Representative Jerrold Nadler have sponsored legislation such as the Respect for Marriage Act and the Uniting American Families Act in an effort to end this discrimination, but as of yet it remains to be seen if said legislation will see passage.

For those interested in information pertaining to Southeast Asia please see: Legal.

Tags: ASEAN, ASsociation of Southeast ASian Nations, Chinese National People's Congress, Chinese Vice Foreign Minister Cui Tiankai, CR-1 Visa, CR1 Visa, Defense of Marriage Act, District of Columbia, DOMA, European Union, Freedom to Marry President Evan Wolfson, gay and lesbian couples, gay couples, IR1 Visa, K-1 Visa, K1 Visa, lesbian couples, Maryland Senator Barbara Mikulski, NPC, Representative Jerrold Nadler, Respect for Marriage Act, Same Sex Marriage, Standing Committee of the National People's Congress, State of Maryland, Third Protocol Amending the Treaty of Amity, Treaty of Amity and Cooperation in Southeast Asia, Uniting American Families Act, US-Thai Treaty of Amity
Posted in Amity Treaty, ASEAN Business, ASEAN Visa, China Business, same sex visa | No Comments »

It recently came to this blogger’s attention that the German Chancellor, Angela Merkel, has expressed some concern about the possibility of the Union of Myanmar (also sometimes colloquially referred to as Burma) becoming Chair of the Association of Southeast Asian Nations (ASEAN). In order to provide further insight it may be best to quote directly from the website of Channel News Asia, ChannelNewsAsia.com:

SINGAPORE: German Chancellor Angela Merkel on Thursday urged ASEAN to openly discuss Myanmar’s political and human rights problems before the country takes its turn as chair of the regional bloc. “Looking at the discussion about Myanmar and its interest in taking over the presidency of ASEAN, I am a little bit concerned,” she told a forum in Singapore, a founding member of the Association of Southeast Asian Nations (ASEAN). Merkel told an audience of government officials, foreign diplomats and academics that “the present leadership of Myanmar has not really proved that they are serious about embarking on the road of democracy…”

The administration of this web log strongly encourages readers to click upon the relevant hyperlinks above to learn more on this topic.

The Union of Myanmar has been in the news a great deal recently as that country recently held elections ushering in something of a new era in Myanmar’s politics although there are some who argue that there has been little real change resulting from the aforementioned elections. That stated, it is this blogger’s personal opinion that any progress under the circumstances would be a good thing. Frequent readers of this blog may note that Myanmar was recently rumored to be pondering the opening of a stock exchange although that has yet to see fruition.

Meanwhile, the United States and China appear poised for cooperation in matters pertaining to ASEAN as a recent article on the Voice of America website pointed out. To quote directly from the aforementioned article:

A top State Department official says that as the United States works to deepen its engagement in Southeast Asia, working closely together with China is a key part of that effort. U.S. Assistant Secretary of State Kurt Campbell says that one of the the most important things that the United States is seeking to do this year, both at the ASEAN regional forum and the East Asia Summit, is show the United States deep commitment to working with China…As the United States works to find common ground with China, the world’s second largest economy and a rising Asia-Pacific military power, Campbell says Washington will be seeking to highlight areas of common pursuit with Beijing and find specific projects the two countries can work with each other in the region…

This blogger encourages readers to click on the hyperlinks noted above to find out more.

It is good to see that American officials are making an effort to become more engaged in the ASEAN region especially with the cooperation of the Chinese since combined efforts could yield significant benefits in the form of better diplomatic and trade relations for all concerned. In a previous posting it was noted that Chinese officials plan to incorporate a high speed rail link into the current rail system employed in the Kingdom of Thailand so that there would be a contiguous rail link between Thailand, Laos, and Greater China. In addition, it was also announced that Bangkok will likely soon see a Chinese Trade Complex which is to be designed to provide a platform for the trade of goods in Thailand. How all of these developments will ultimately play out remains to be seen, but one thing is clear: there is room for optimism in a current analysis of ASEAN developments.

For related information please see: US-Thai Treaty of Amity.

Tags: ASEAN, ASEAN Business, Asia-Pacific, ASsociation of Southeast ASian Nations, Bangkok, Beijing, Burma, China, China Business, Chinese Trade Complex, German Chancellor Angela Merkel, Laos, Laos Business, Myanmar, Singapore, stock exchange, Thailand, Thailand Business, U.S. Assistant Secretary of State Kurt Campbell, US-Thai Treaty of Amity, Voice of America, Washington
Posted in ASEAN Business | No Comments »

It recently came to this blogger’s attention that the media mogul and Mayor of the City of New York Michael Bloomberg has been noted for remarks about the beneficial aspects of immigration to America. To quote directly from the website myfoxny.com:

WASHINGTON – Detroit should take a page from Lady Liberty and shine a beacon of welcome to immigrants as a way to overcome its severe population loss, New York Mayor Michael Bloomberg said Sunday.

For those who follow this blog with any frequency it should be noted that New York has recently seen efforts by the attorney generals of that State to decrease the amount of immigration fraud in the form of illegitimate operators claiming expertise in U.S. immigration matters. It would appear that the city of Detroit has encountered much economic turbulence as a result of recent economic downturns. Meanwhile, there can be significant benefits to a national economy to be had through effective immigration policies. To quote further from the aforementioned article:

Bloomberg’s prescription for Detroit’s salvation came in a discussion about what he called a “crisis of confidence” among business people about the nation’s economy. Bloomberg said the “most obvious” answer is to encourage immigration.

“This is a country that was built by immigrants … that became a superpower because of its immigrant population, and unless we continue to have immigrants, we cannot maintain as a superpower,” he said.

Virtually all Americans are descended from those who immigrated to the United States of America. In a modern context, there are many visa categories available to prospective immigrants who are interested in conducting business in America. For example, the EB-5 visa provides lawful permanent residence to the visa holder upon lawful admission to the United States. Furthermore, the E-2 visa may allow for non-immigrant visa benefits to those foreign nationals conducting business pursuant to a Treaty with the United States. In the context of Thailand, there may be visa benefits which can be acquired pursuant to the bi-lateral relationship between the USA and Thailand as codified in agreements such as the US-Thai Treaty of Amity. Some may be eligible for similar benefits in the form of the E-1 visa. Those working for a multi-national organization may be eligible to obtain an L-1 visa as an intra-company transferee either in the form of an L-1A visa or an L-1B visa, depending upon the factual circumstances of the case.

Clearly, there are benefits to be accrued to those immigrating to the USA. Concurrently, there may also be benefits to the American economy and the American People as a result of immigration to the USA by foreign nationals.

For related information please see: US lawyer or US business visa.

Tags: American Economy, Crisis of Confidence, Detroit, E 2 Visa, E-1 Visa, E1 visa, E2 Visa, EB-5 Visa, EB5 Visa, Immigrant Investor Visa, intra-company transferees, L-1 visa, L-1a visa, L-1b visa, L1 Visa, Lawful Permanent Residence, New York Mayor Michael Bloomberg, superpower, treaty investor visa, treaty trader visa, US Business Visa, US Economy, US Immigration, US lawyer, US Visa, US Visa Burma, US Visa Cambodia, US Visa China, US Visa India, US Visa Indonesia, US Visa Korea, US Visa Laos, US Visa Myanmar, US Visa Singapore, US Visa Sri Lanka, US Visa Taiwan, US Visa Thailand, US Visa Vietnam, US-Thai Treaty of Amity
Posted in US Visa and Immigration | No Comments »

As the world economy continues to re-stratify in ways that have not been predictable, it recently came to this blogger’s attention that recent shareholder voting activity at a local Thai bottling company may have placed the soft drink giant Pepsi upon something of a “back foot”. To quote directly from the official website of Reuters, Reuters.com:

BANGKOK, April 29 (Reuters) – Shareholders in PepsiCo Inc’s Thai bottler, Serm Suk Pcl , voted on Friday to terminate its contracts with the U.S. soft drink maker after more than half a century in business together.

The move means the U.S. giant will have to find other partners to tap growth in the Southeast Asian country of 67 million people. It had no immediate comment.

From an American’s perspective as an observer in the Kingdom of Thailand the re-stratification mentioned above can be best observed by the increasing importance of regional organizations such as the Association of Southeast Asian Nations (ASEAN). Concurrently, American companies doing business in Thailand and Greater Asia are finding that some jurisdictions have different rules regarding corporate governance when compared to the United States. To continue quoting further from the aforementioned article:

About 99.41 percent of shareholders voted to end the business with PepsiCo. PepsiCo, maker of Pepsi-Cola, Sierra Mist and Tropicana juice, owns 41.54 percent of Serm Suk through Pepsi-Cola (Thai)Trading and Seven-Up Nederland BV. It remains unclear what it will do with this stake.

The administration of this web log recommends readers click upon the hyperlinks above to read further about this story in detail.

It is interesting to note that shareholder voting rights can have a tremendous impact upon the governance of a corporation in Thailand as a Thai Company may be governed by Thai corporate law which can be substantially different in many ways to U.S. law on the same subject matter. For American readers, it should be noted that there may be benefits to be had for US companies in Thailand pursuant to the provisions of the US-Thai Treaty of Amity. That stated, although Amity Treaty Companies may be of benefit to some endeavors not all business activity can be undertaken pursuant to this Treaty. Therefore, those interested in further information on this subject may be best informed by contacting a Thai lawyer.

The ramifications of the shareholder vote noted above may be felt not only by Pepsi, but by others in the soft drink business in the Kingdom of Thailand and Greater Southeast Asia. To quote directly from a recent article entitled SSC Seals Pepsi Divorce from the Business section of the Bangkok Post‘s official website BangkokPost.com:

The transition period could create opportunities for rival Coke and new players such as the fast-rising Peruvian brand Big Cola to steal market share from Pepsi. Thailand has long been one of only a handful of cola markets in the world where Pepsi outsells Coke.

The administration of this web log strongly recommends that readers interested in these topics click upon the hyperlinks above to read further from this insightful article in order to gain insight and perspective on this story and the possible ramifications thereof.

Clearly the reverberations of the recent corporate vote could accrue to the benefit of Pepsi’s competitors within the Thai market. This blogger, simply as a consumer, has noticed what appears to be some increasing popularity for Big Cola mentioned above. This recent popularity may not necessarily mean that this soft drink will take Pepsi’s place as the number one soft drink in Thailand, but the whole incident may go to show the way in which the local Thai soft drink market is beginning to show an increasing taste for novelty. This trend toward novelty is increasingly palpable across much of the Thai economy as consumers are presented with increasing purchasing choices in the Kingdom. Meanwhile, it could be argued that the biggest beneficiary of the recent vote is Pepsi’s major international rival Coca-Cola which might pick up further market share as a result of a possible Pepsi decline.

For related information please see: business in China or US Company Registration.

Tags: ASEAN, ASsociation of Southeast ASian Nations, Big Cola, Business in Thailand, Coca-Cola, Limited Company Thailand, Pepsi-Cola, PepsiCo Inc, Serm Suk Pcl, Seven-Up, Thai Company, Thai Lawyer, Thai Shareholder Voting Rights, Thailand company, Thailand Corporate Law, US Company Registration, US-Thai Treaty of Amity
Posted in American Business, ASEAN Business, Editorial, Opinion, Thailand Business | No Comments »

Over the years this blogger has seen large numbers of tourists flock to the Kingdom of Thailand as well as the neighboring nations of Laos, the Union of Myanmar (referred to by some as Burma), Malaysia, and the Kingdom of Cambodia. At the same time, this blogger has also witnessed the metamorphosis of some of these tourists into entrepreneurs by remaining in some of these countries (as well as other jurisdictions in Greater Asia such as Indonesia, Vietnam, China, Taiwan, Singapore, Hong Kong, South Korea, Nepal, Macau, India, and Sri Lanka; to name only a few) in a business context for many years and; for some, even decades or a whole lifetime. Whatever the circumstances of those Americans Resident Abroad remaining in the region of economies increasingly being labeled by both the mainstream and alternative media outlets by their affiliation with the Association of Southeast Asian Nations (ASEAN) one thing is clear: the economies of Asia are set to expand at an incredible rate by relative historical comparison. Therefore, it stands to reason that there are likely to be more Americans doing business in these jurisdictions. This state of affairs is occurring at a time when the potential of the internet and the World Wide Web first noted little more than a decade ago is beginning to become fully realized by businesses large and small. As e-commerce becomes an evermore ubiquitous facet of virtually every enterprise’s business strategy it is becoming more clear that many business functions are increasingly being performed by businesses of all sizes online and, in some cases, these businesses are even being maintained from an entrepreneur’s home.

This phenomenon is interesting for this blogger to note from the perspective of an American who is resident in Bangkok, Thailand as the Thai shop-house business model of maintaining a residence and business premises within close proximity has lead to a thriving small business community in the vast metropolis that is Greater Bangkok. This thriving business community, coupled with many of the other positive factors associated with doing business in Thailand, has lead to a vibrant economy that remains conducive to further foreign investment by entrepreneurs and businesses seeking to derive economic benefits both in Thailand and throughout the Asian markets. Of possible importance to Americans resident abroad or those thinking of residing abroad are the issues noted above as well as those associated with ownership of Thai property or Thai real estate especially in the form of a Thai Condominium.

In Thailand, as well as throughout many jurisdictions in Asia, there are restrictions placed upon foreign ownership of real estate. Although there are provisions allowing for foreign ownership of Thai property in many cases it is difficult, if not impossible, for a foreign national to secure freehold title (referred to as Chanote title in Thailand) in Thai real property such as land. However, it may be possible for a foreign national in Thailand, such as an American Citizen, to conveniently secure freehold title to a Thai Condo if the provisions of various laws and regulations on this issue, such as the Thai Condominium Act, are adhered to. Meanwhile, a foreign national who owns a Condo in Thailand may be qualified to receive a Foreign House Registration Booklet (referred to as a Tabien Baan for Thais or a Foreign Tabien Baan, or Yellow Tabien Baan for foreign nationals). Taking the aforementioned factors into consideration, in conjunction with the fact that for American Citizens and American Companies in Thailand there may be benefits pursuant to the provisions of various legal instruments such as the US-Thai Treaty of Amity which may provide the privilege of virtually 100% ownership of a Company in Thailand with “National Treatment” for certain business undertakings, one is left with little doubt that there are tangible legal benefits which could be accrued to the favor of Americans resident in Thailand conducting business in the ASEAN region as well as the regions of Greater Asia. Therefore,  investing in what this blogger would refer to as a “Thai Pad” (which non-literally alludes to the IPad-like gadgets allowing for increasingly easy real time access to the internet as well as the exponentially beneficial combination of privileges accruing to owners of Thai property registered on a Yellow Tabien Baan in conjunction with the advantages which may be had for Americans resident abroad utilizing a Thai company certified under the US-Thai Amity Treaty) could prove to have been prudent by future analysts in both tangible as well as intangible terms.

For related information please see: US Company Registration.

Tags: American Resident Abroad, Americans Resident Abroad, Amity Treaty Thailand, ASEAN, ASEAN Business, ASsociation of Southeast ASian Nations, Business in ASEAN, company in Thailand, Condo in Thailand, IPad, Thai Company, Thai Condo, Thai Condominium, Thai Pad, Thai Property, Thai Real Estate, Thailand Business, Thailand Business Law, Thailand company, Thailand Condo, Thailand Condo Law, Thailand Condo Lawyer, Thailand Condominium, Thailand Property, Thailand Property Title, Thailand Real Estate, Thailand Real Estate Title, US Citizen Resident Abroad, US-Thai Treaty of Amity
Posted in American Business, Amity Treaty, ASEAN Business, Cambodia Business, China Business, Ecommerce, Laos Business, Myanmar (Burma) Business, Thailand Business, Thailand company, Thailand Condo, Thailand Property, Thailand Real Estate, Thailand Work Permit, US Business, US Company Registration, US LLC, US Taxes | No Comments »

It recently came to this blogger’s attention that there are important events occurring in the realm of finance as the United States recently appears to have had its sovereign debt rating outlook lowered by Standard & Poor’s. To quote directly from an article written by Robin Harding, James Politi, and Michael Mackenzie on the official website of the Financial Times at FT.com:

Standard & Poor’s issued a stark warning to Washington on Monday, cutting its outlook on US sovereign debt for the first time and throwing more fuel on the raging debate over America’s swollen deficits.

The agency kept America’s credit rating at triple A but for the first time since it started rating US debt 70 years ago, cut its outlook from “stable” to “negative”. A negative outlook means there is a one-third chance of a downgrade in the next two years.

The administration of this blog strongly encourages readers to click on the hyperlinks above to view this story in detail as further insight can be derived therein.

The ramifications of this announcement are likely to reverberate around the globe, but in the United States there appears to have already been at least a market reaction to this information. To quote directly from an article written by Larry Elliot posted on the official website of The Guardian at Guardian.co.uk:

US budget deficit has moved from a surplus at the turn of the millennium to a deficit of 11% by 2009. Shares fell sharply on Wall Street today after the ratings agency S&P issued a warning to the US government about its soaring budget deficit. In a move that surprised and rattled the financial markets, S&P said it was cutting its long-term outlook on America from stable to negative…In early trading in New York, the Dow Jones industrial average had lost nearly 250 points – 2% – with the dollar weaker on the foreign exchanges and yields rising on US Treasury bills. The FTSE 100 in London was also down 2% or 126 points at 5869.

Again, this blogger strongly encourages readers to click on the hyperlinks above to read further and gain greater insight.

Hopefully, the consequences of the S&P downgrade will be short lived for America and her People, but there are some who argue that further turbulence may be ahead as countries around the world are economically re-aligning in ways which are unprecedented.  To quote directly from an article written by David Marsh on the website Yahoo.com:

China and four other leading high-growth economies have taken landmark steps toward lowering the importance of the dollar in international financial transactions — part of a seminal shift in the move towards a multicurrency reserve and trading system…Addition of South Africa to the former BRICS format seems to have galvanized the grouping. The five countries agreed to expand use of their own currencies in trade with each other — an important step toward putting the dollar into a new downsized place. One key influence is the annual expansion of China’s trade volume with other core countries by 40% in 2010 — and the buoyancy looks set to continue. The BRICS’ state development banks, including the China Development Bank, agreed to use their own currencies instead of the dollar in issuing credit or grants to each other — and they will also phase out the dollar in overall settlements and lending among each other.

In the recent past, it seemed as though many were discussing an “alternative” reserve currency to take the place of the dollar in an international context. However, from the information which can be gathered above, it would appear as though the so-called BRICS countries (Brazil, Russia, India, China, and newly added South Africa) are moving towards something of a multicurrency system which, presumably, would incorporate the currencies, to one degree or another, of the member states noted above.

It is difficult to comment upon these events in detail at the time of this writing as the full ramifications of S&P’s downgrade, in conjunction with the BRICS announcements, could substantially impact the United States, Thailand, and the Association of Southeast Asian Nations (ASEAN) as a whole; since all of these entities have economic and political ties to the BRICS nations.

Concurrently, it would appear as though the Kingdom of Thailand remains something of an oasis of economic stability amidst the events unfolding above as tourism in Thailand along with the business of Thai Companies would appear to be steady. Currently, Thailand maintains thriving economic ties with the United States pursuant to agreements such as the US-Thai Treaty of Amity.

For related information please see: Thai business visa or US Company Registration.

Tags: American Business, ASEAN, ASEAN Business, ASsociation of Southeast ASian Nations, Brazil Business, BRIC, BRICS, business in America, Business in ASEAN, business in China, business in India, business in Russia, Business in Thailand, China Business, China Development Bank, India Business, international financial transactions, multicurrency reserve, Russia Business, S&P, South Africa Business, Sovereign Debt, Sovereign Debt Downgrade, Standard and Poor's, Thailand Business, US Sovereign Debt, US-Thai Treaty of Amity
Posted in News | No Comments »