Book 3 — Specific Contracts

Section 1096 — Limited company — definition

Statutory text (Thai original)

ทวิ[53] (ยกเลิก)มาตรา ๑๐๙๗[54] บุคคลใด ๆ ตั้งแต่สองคนขึ้นไปจะเริ่มก่อการและตั้งเป็นบริษัทจำกัดก็ได้ โดยเข้าชื่อกันทำหนังสือบริคณห์สนธิ และกระทำการอย่างอื่นตามบทบัญญัติแห่งประมวลกฎหมายนี้

Verbatim from the Royal Gazette / Office of the Council of State

English translation

A limited company is that kind of which is formed with the Capital divided into shares, and the liability of the shareholders is limited to the amount, if any, unpaid on the shares respectively held by them. Section 1096 bis. (Repealed)

This English translation is provided for reference only and has not yet been firm-verified — always rely on the Thai original.

Firm annotation

Section 1096 is the constitutive definition of every Thai private limited company. Three operational features: (1) minimum 2 shareholders historically — the 2023 amendment now allows single-shareholder companies; (2) shareholder liability is capped at the unpaid amount on shares (no personal liability for company debts beyond that); (3) company has separate legal personality (§66). Foreigners can own up to 49.99% of shares in a Thai private limited company without invoking Foreign Business Act restrictions; over 50% triggers FBA review unless the business is on the unrestricted Schedule 3.

This is educational reference, not legal advice. Consult a qualified Thai lawyer before relying on any provision.

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