Création d'entreprise
What are the Articles of Association for companies in Thailand
30/11/2022
Articles of Association are an essential aspect of company incorporation. Articles of Association determine how a company will operate and undertake specific procedures. The content contained in a company’s Articles of Associate is determined at the company’s statutory meeting and can be revised later with Shareholders’ meetings.
In this article, we take a look at some of the key provisions contained within a typical set of Articles of Association.
Points clés
- Articles of Association determine how a company will operate and undertake specific procedures.
- In Thailand, private limited companies can either create and adopt their own Articles of Association or implement the relevant provisions contained within the Thai Civil and Commercial Code.
- Provisions specified in the AoA are enforceable against third parties (unlike Shareholder Agreements that is private agreements between the shareholders).
What are the articles of association?
Articles of Association are a document that specifies the regulations for a company’s operations and company’s purpose. Articles of Association also establish the procedure for the completion of tasks within the organization, for example, how to appoint directors and the handling of financial records.
Articles of Association must be recorded at the Ministry of Commerce. It is also important to note that the Ministry of Commerce will review all the provisions of all submitted Articles of Association. This is done to ensure all the provisions are compatible with the Thai Civil and Commercial Code. Should any provisions be found to go against the Civil and Commercial Code, they will be rejected.
Articles of Association are not a mandatory requirement. Should a company opt against implementing its own Articles of Association, the company will then be governed by the provisions of the Thai Civil and Commercial Code.
It is entirely possible for a company to not implement any Articles of Association during the initial incorporation stages, but decide to implement some at a later date. Should a company wish to do so, they will need to have the Articles of Association approved during a Shareholder’s meeting or EGM. Should a company wish to amend its Articles of Association, the changes will again have to be approved at a Shareholder’s meeting or EGM.
Finally, the provisions specified in the Articles of Association are enforceable against third parties (unlike Shareholder Agreements that is private agreements between the shareholders). This offers shareholders an added layer of protection and enforcement rights. Should an action be taken that goes against the Articles of Association, it will not be able to proceed.
Provisions included in the articles of association
In Thailand, private limited companies can either create and adopt their own Articles of Association or implement the relevant provisions contained within the Thai Civil and Commercial Code.
Articles of Association usually include, but are not limited to the following chapters:
Chapter 1: General provisions
Chapter 2: Shares and shareholders
Chapter 3: Directors
Chapter 4: Shareholders’ meeting
Chapter 5: Balance sheet
Chapter 6: Dividend and reserve fund
Chapter 1: General provisions
Chapter 1 of a company’s Articles of Association is made up of the provisions contained in the Thai Civil and Commercial Code relating to private limited companies. These provisions will apply in all circumstances.
As per Thai law, any amendments or modifications to be made to a company’s Articles of Association must be approved by a shareholders’ meeting.
Chapter 2: Shares and shareholders
Chapter 2 of a typical set of Articles of Association usually relates to the shares and shareholders. The details contained within this chapter can be made up of the following information:
- Details for the types of shares must be entered into the name certificate, and the shares must be fully paid up.
- Every share certificate of shares must be signed by at least one director and contain the company seal.
- Any transfer of shares must be made in writing and signed by the transferor, transferee, and certified by at least one witness.
- The transfer of shares will only be valid when the company registers the transfer.
- The company cannot own its own shares or take them in pledge.
Chapter 3: Directors
Typically Chapter 3 of the Articles of Association relates to the company directors. The directors of a company are appointed by the shareholders to manage the company’s day-to-day affairs.
Examples of typical clauses include:
- Key details such as the number and remuneration of the directors at the company will be established by the general meeting of shareholders.
- Should a vacancy in the board of directors arise, the vacancy must be filled up by a director appointed by the board of directors.
- Any replacement director appointed shall retain their position for the same duration only as the director to the replaced was entitled.
- The director may fix the quorum necessary for business transactions at their meetings. Unless stated otherwise, a quorum will be set at three (when the number of directors exceeds three).
- The board of directors is responsible for the company’s management.
Chapter 4: Shareholders’ meeting
Chapter 4 refers to Shareholders’ meetings. A shareholders’ meeting is a meeting called for and held by the shareholders of a company. Such meetings are used to discuss the arrangements of the company or to vote in the election of board members.
Typical clauses include:
- The general meeting of shareholders will usually be held within six months after the company registration and held every following 12 months. This meeting is also known as an ordinary meeting. Other types of general meetings are called extraordinary meetings.
- Directors may request an extraordinary meeting for special resolutions or in response to a request made in writing by shareholders holding (who hold no less than one-fifth of the shares).
- Shareholders who are unable to physically attend the meeting can vote by proxy, provided that the power given to the proxy is in writing.
- The chairman of the board of directors shall preside at every general meeting of shareholders.
- If no chairman is present or the chairman has not arrived within 15 minutes after the appointed time of holding the meeting, the shareholders may elect one of their members to be the chairman.
- A general meeting may not transact any business unless shareholders representing at least one-fourth of the company’s capital are present. If the required amount of shareholders is not present within an hour, the meeting shall be dissolved.
Chapter 5: Balance sheet
A balance sheet is effectively a statement of a business’s assets, liabilities, and owner’s equity and is to be prepared as a mandatory requirement for companies in Thailand. Chapter 5 relates to balance sheets when they need to be prepared by etc.
- A balance sheet containing a summary of the company’s assets and liabilities and a profit and loss account must be made at least once every financial year from 1 January to 31 December.
- The balance sheet must be examined by at least one auditor and submitted at the general meeting for approval within four months from the date the balance sheet was finalised.
Chapter 6: Dividend and reserve funds
A dividend is the distribution of corporate profits to eligible shareholders. The Articles of Association typically set out how dividends etc are to be calculated and paid out.
- The distribution of dividends must be made in proportion to the amount paid upon each share unless decided with regard to preference shares.
- The company must place in a reserve fund at the time of distribution of dividends, at least one-twentieth of the profits arising from the company’s business until the reserve fund reaches the one-tenth part of the capital of the company or such higher proportion thereof.
Any other provisions that the parties wish to make enforceable towards third parties such as the right of first refusal and anti-dilution clauses to protect the existing shareholders.
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Questions fréquemment posées
Un étranger peut-il créer une société en Thaïlande ?
Oui, il est possible pour un étranger d'ouvrir une entreprise en Thaïlande. Il existe également des options permettant de créer des entreprises détenues à 100 % par des étrangers.
Combien coûte la création d'une entreprise en Thaïlande ?
Les frais officiels d'enregistrement d'une société en Thaïlande s'élèvent à 7 500 THB.
Comment créer une société à responsabilité limitée en Thaïlande ?
- Étape 1 : Choisir et enregistrer un nom de société.
- Étape 2 : rédiger et déposer l'acte constitutif.
- Étape 3 : convoquer et tenir une assemblée statutaire des actionnaires.
- Étape 4 : Enregistrer la société auprès du Ministère du Commerce.
- Étape 5 : Immatriculer la société à la taxe sur la valeur ajoutée (TVA) et l'impôt sur le revenu.
Est-ce une bonne idée de commencer une entreprise en Thaïlande ?
La Thaïlande est une option attrayante pour ceux qui souhaitent créer une entreprise. Elle dispose d’une excellente infrastructure, et des programmes tels que le BOI offrent des incitations importantes aux entreprises.
De quel montant avez-vous besoin pour créer une entreprise en Thaïlande ?
En règle générale, la création d'une entreprise en Thaïlande coûte entre 40 000 et 60 000 THB (hors TVA et taxes gouvernementales). Les frais officiels d'enregistrement d'une société en Thaïlande s'élèvent à 7 500 THB.
Comment un étranger peut-il créer une petite entreprise en Thaïlande ?
Oui, les étrangers peuvent créer une entreprise en Thaïlande. Cependant, certaines activités commerciales sont restreintes par la loi sur les entreprises étrangères (le Foreign Business Act) et pour pouvoir entreprendre dans ces secteurs d’activités les entreprises doivent obtenir une licence/certificat d’entreprise étrangère, ce qui peut être long et compliqué.
Quel est le plus grand problème de la Thaïlande ?
Le principal problème auquel sont confrontées les entreprises étrangères est de pouvoir entreprendre l'activité commerciale souhaitée en tant qu'entreprise détenue à 100 % par des étrangers. De nombreuses activités commerciales sont protégées par la Loi sur les Entreprises Étrangères (Foreign Business Act) et pour qu'une entreprise puisse opérer dans ces secteurs protégés, elle devra être détenue majoritairement par des actionnaires thaïlandais (à moins qu'une promotion du BOI n'ait été obtenue).
Pourquoi est-il difficile de faire des affaires en Thaïlande ?
La loi sur les entreprises étrangères (Foreign Business Act) limite les activités commerciales qu'une société détenue à 100 % par des étrangers peut entreprendre. Cela signifie qu'il faut rechercher des actionnaires thaïlandais ou obtenir une promotion du BOI pour qu'une société puisse fonctionner légalement.
Est-ce que je peux être propriétaire d'une société en Thaïlande?
Oui, les étrangers peuvent créer une entreprise en Thaïlande. Cependant, certaines activités commerciales sont restreintes par la loi sur les entreprises étrangères (le Foreign Business Act) et pour pouvoir entreprendre dans ces secteurs d’activités les entreprises doivent obtenir une licence/certificat d’entreprise étrangère, ce qui peut être long et compliqué.
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