A joint venture exists when two or more parties or companies join forces with a view to make profits or share losses. Many joint ventures involve companies or individuals engaging in business using a separate Thai private limited company, or occasionally a limited partnership.The term “Joint Venture” is not clearly defined in Thai Law, only appearing in the Thai tax code. Thai law treats joint ventures as a contract matter, and with the exception of filing for licenses and/or tax certificates, the parties in the joint venture remain separate legal entities.
The contract cannot be registered in any Thai government body.
There are essentially two types of Joint Ventures:
1. Incorporated Joint Venture
2. Un-Incorporated Joint Venture
An Incorporated Joint Venture requires that the incorporated parties remain separate entities with relation to tax submissions.
The Un-Incorporated Joint Venture requires that the un-incorporated parties file for a tax number for the purpose of tax submissions.