Sell Your Business

Want to sell out your business in Thailand? Here’s something that talks about it.

Selling a business requires the seller and the buyer to sign an agreement. Under Thai law, a business could be sold through a variety of legal procedures. In Thailand, in order to sell or purchase a business in a legally compliant manner, it is necessary for the buyer to obtain legal ownership of the capital of the business. Nevertheless, in most of the cases, it would also be important for the buyer to seek control over the management as well as the assets owned by the company. This is because the majority owner of the company controls the company or its assets. Hence, it is necessary that the sale and purchase contract addresses all of these concerns.

In case the company owns a piece of land, transferring the ownership of the land from the buyer to the seller is simpler if the ownership is kept under the company’s name, instead of transacting the land separately. This holds true especially in the case if the buyers of the business involve foreign investors. The Thai Land Department has set strict regulations associated with the sale of land to a Thai company with foreign investors, so as to avoid unlawful foreign ownership of the land involved.

Here are some important factors associated with the sale and purchase contract.

• It should be comprised of a clause or clauses pertinent to holding a meeting of extraordinary shareholders so that the new board of directors could be appointed.
• The contract should also mention the date by which the new directors must register with the Department of Business Development (DBD).
• The procedural step is more important than buying the actual shares. This is because, according to Thai law, the company directors must have direct control over the company, instead of the shareholders.
• In a way, the date by which the new directors must register is parallel to the closing date of the real estate conveyance.

Selling a business involves a lot of legal complexities, dealing with which requires expert legal assistance. If you wish to sell your business in Thailand and are looking forward to seeking assistance on it, BLS is the legal expert that would help you throughout the business selling process, terms and conditions, rules and regulations, clauses, and documentation.