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A company can be set up in 3 major forms of business organization. Those are sole proprietorship, partnership, public limited company or corporate company.
In a partnership business two or more partners come together to form a company. They are both the owners of the company and also share the liability and profits equally. All the partners are equally liable for the losses and also share the profit equally.
There are three types of partnership business. Limited partnership must be registered by law while in ordinary partnership this rule does not apply.
Ordinary Thai Partnership
- Unregistered ordinary partnerships, in which all partners are jointly and wholly liable for all obligations of the partnership
- Registered ordinary partnerships. If registered, the partnership becomes a legal entity, separate and distinct from the individual partners
- Limited partnerships. Individual partner liability is restricted to the amount of capital contributed to the partnership. Limited partnerships must be registered.
- Limited partnership must be registered by law while in the case of ordinary partnership this rule does not apply.
Ordinary Thai partnership is formed by two or more than two persons. Every partner is equally liable for the unlimited liability of the company. Each partner is jointly and individually responsible for the tax and debts of the business. If the creditors claimed money cannot be paid through the company assets then the partner’s personal assets and property will be liquidated and the debt paid off. Also all the partners enjoy the profits made out of the business in equal terms.
Registered Ordinary Partnership
Ordinary partnership doesn’t require by law to be registered. But it can be registered as well. If registered the partnership becomes a legal entity separate and distinct from its partners.
A Limited partnership company must be registered and the liability of the partners is restricted to the amount of capital contributed into the partnership company.