Acting as a director

The minimum information that the each director of a Thai company must know

The company has been registered and you are the director and the shareholder now. A lawyer has shown you company papers, including a list of shareholders with your name and the number of shares belonging to you. Be aware, from now you are responsible for the company’s activity (including criminal liability).

Please note, that by signing a contract for accounting services, the director does not transfer his liability to a legal office. If the legal office makes a mistake, the director still will be the person responsible for this.

It is almost impossible for a foreigner to learn all Thai laws, but there is a minimum that each director must know.

1. After the registration, the director has to apply to the Revenue Department in order to obtain company tax ID card. The card will be sent to the registered address of the company within one month from the date of application.

2. Director has to get a tax ID for himself as well. Even if the director does not work and does not apply for a work permit, he must have the personal tax number.

3. The director is responsible for share certificates issue. These documents are issued for each shareholder with the information about his shares.

4. Finally, the director is responsible for the company’s accounting reports, both monthly and annual. Failure to comply with these obligations entails penalties.

The director is responsible to the shareholders. If the director violates his obligations, he can be removed from the position by legal procedure. It would be upsetting if the company had been registered for the purpose of real estate acquisition.

A brief summary is as follows. The director has to be sure that after the company registration he keeps the following documents:

• Company papers.

• Company stamp.

• Company tax ID.

• Director tax ID.

• Share certificates.

This is a must for any company registered in Thailand. The wider field of activity requires more documents. Moreover, the director has to remember the date of company registration to submit the annual balance sheets in time.

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