Corporate & Commercial
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:
Gain new insights and expertise
Help comply with the Thai ownership quota or ease the startup
Help fill a gap in company’s operations or workforce
Access to new markets and industries, new channels of distribution
Access to better resources, such as specialized staff, machinery and raw materials, and additional financial resources
Access to know-how, technology and complementary IP assets
Share both the risks and the costs with a partner
Create long-lasting business relationship
Access to particular projects that are considered too large for individual companies to handle alone
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.