On 23 June 2020, the Thai Cabinet has approved amendments to the TCCC and Act for the Prescription of Penalty Imposed on Registered Partnerships, Limited Partnerships, Limited Company, Associations and Foundations B.E. 2499 (1956) (“Penalty Act”) related to the corporate registration, penalty for delayed payment of dividend, and the combinations of limited companies. The objectives for these amendments primarily aim to encourage the ease of doing business, enhance Thailand’s competitiveness, and build-up a good business environment for the incorporation in Thailand.
Within these intents, the amendments touch upon various aspects of corporate laws in TCCC provisions and Penalty Act. A summary of the amendments can be summarized as follows:
It is worth noting that these bills will be proceeded to the National Legislative Assembly for consideration and subsequently published in the Government Gazette before their official promulgations in which these processes usually take around 3-month up to 1-year, depending on the complexity of that particular matter. We expect the proposed amendments will become effective in the first quarter of 2021.