Joint ventures and strategic alliances can be effective mechanisms of pursuing economic growth and expansion of businesses.
Joint ventures can range from collaboration and cooperation arrangements and shareholder agreements to mergers of two or more legal companies operating in the same industry or in related activities and markets, having similar goals and growth strategies.
Under the Thai Civil Code, a joint venture is not considered a legal entity, but an agreement between individuals or companies. On the contrary, under the Revenue Department a joint venture is recognized as a taxable entity with its own separate accounts and must file a tax return and register as a value added tax operator if the annual turnover is higher than 1,8 million Baht.
Joint ventures have a lot of major advantages, including:
A joint venture collaboration can be highly complex and can easily lead to a loss of shareholder value if not structured in the most efficient way for both parties.
At Antares, our lawyers have the skills and experience to create a healthy and ongoing basis for your business relationship, ensuring that you achieve your business goals quickly and efficiently.
We can advise you on a range of issues that might arise and help you choose the appropriate legal vehicle for your joint venture and implement it. Contact us today for additional information or assistance you may require.