Business is the activity of individuals or groups of people in production operations , sales of goods or services and the aim is to earn in return or profit from the activity that operates in many forms, including SME businesses, small businesses. medium business and large business and also operate in many forms, both business with only one person as a sole proprietorship and business that is a joint investment with other people as a group. Therefor , PMP SERVE (THAILAND) will let everyone know the business model which is divided into two major types of business are legal entities and not legal entities as follows:
Legal entity
A form of business that must be registered and established by law are as follows:
Partnership
Partnership is the joint of two or more persons, which must be jointly invested with money, property or labor for the purpose of seeking profits and sharing profits from business operations in an agreed proportion. Partnerships that are classified as juristic persons are divided into 2 types:
- Registered Ordinary Partnership
A registered ordinary partnership is a partnership that is a legal entity and has a particular name ,“Ordinary Partnership”, a form of partnership in which all partners are “Unlimited liability” means that every partner is liable for all liabilities of the partnership without any limitation in case of the partnership has liabilities arising from their business operations. and all partners have equal rights to operate in the partnership.
- Limited Partnership
Limited Partnership is a form of partnership that is registered as a legal entity as person has the rights to perform various actions as required by law. A limited partnership consist of two types of partnerships, including limited liability partnerships , there can be one person or many people to liable for not more than the amount he invested in a limited partnership, and partners unlimited liability there can be one person or many people jointly liable for all the partnership’s liabilities.
Company Limited or Corporation
A public limited company is a type of company that consists of 15 or more shareholders and the number of directors of the company is not less than 5 people. It was established with the intention of offering shares to the public. The purpose is clearly stated in the Memorandum of Association that is Aa public limited company can sell a certain amount of its shares to the general public, therefore people who buy shares are owners of the business in proportion to their shares and receive benefits in the form of dividends. Shareholders have limited liability that is not exceeding the amount of shares that must be paid in case of bankruptcy or having to out of the business. Shareholders are only responsible for the loss of their investments and this share may be sold to others at the daily share price which will be under the supervision of the Securities and Exchange Commission
Business Organization Established under Specific Law
A business organization established or under a specific law is a business model that consists of 15 shareholders or more and must have at least 5 directors. The capital is divided into shares, the par value of each share is equal, with a one-time payment of the shares in full. Example of this type of business : industrial business, commercial business, construction business, service business, mining business, financial business, food business, as well as self-employed people such as doctors, engineers, architects, etc.
Not Legal entity
A form of business that does not require registration established by law but may require commercial registration as follows:
Sole Proprietorship or Single Proprietorship
Sole Proprietorship is a business in which only one person owns the business and earn from investment, both profit and loss alone. The owner of the business is responsible for all liabilities in unlimited amount. The creditor has the right to claim the owner’s assets if the assets of the business are insufficient to pay the debt. It is a business model that can be seen frequently in daily life such as grocery stores, hawkers, stalls, beauty salons, clothing stores, etc. If it is a business under the Commercial Registration Act B.E. 2499, registration is required. Business owners must apply for commercial registration within 30 days from the date of commencement of business operations.
Unregistered Ordinary Partnership
Unregistered Ordinary Partnership or popularly known as “Ordinary Partnership” is agreement to run business jointly between two or more persons arising from the willingness of the persons to conduct business together and mutually agreed upon which may or may not have written evidence but there must be something to shares, such as money, property or labor, with the purpose of sharing the profits. It has the advantage of being easier to set up and less risky than a standalone business because there are partners to help lighten the burden which this type of partnership, the law does not require registration as a legal entity. Therefore, the partnerships and company are not separated from each other , all partners must help each other in unlimited liability and creditors can sue anyone.
Which business model suits you?
In deciding to run business in any model, Entrepreneurs or partners must take a number of important factors such as the nature of the business, objectives, amount of capital, knowledge and ability to operate the business, etc., in order to choose the appropriate business model and make it possible to run business succeed and bring benefits according to the stated objectives. However if you need your business is continued to grow and being trust from customers or partners. In addition to the effort, talent and capital , Operators need the law to guarantee their credibility by turning the business into a “juristic person or legal entity ”
Company registration service, fair price by professional team PMP Serve (Thailand) Co.,Ltd
PMP SERVE (THAILAND) Company, Registration Specialist. We are happy to advice and provide services for company registration. We are ready to provide company registration for a variety of businesses, such as production and distribution business, service business company , construction business , travel business company, hotel, resort, online selling business, etc. Company registration by a quality team with skills and experience for a long time that help your company registration to be fast, smooth and accurate, according to the principles of law by acting on your behalf every step of the way at a fair price. We are guaranteed with over 17 years of experience in providing limited company registration services and we are ready to provide accounting services, auditing, tax planning, accounting system, business consulting services and other comprehensive services.
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