The Thai and Western concepts of partnership are broadly similar. A partnership can be established simply by 2 persons, and is not required to be registered. Therefore, the organisation can be formed as an unregistered ordinary partnership. If the partners desiring partnership want to register their organisation, they could be registered as a Registered Ordinary Partnership or a Limited Partnership. Each partner can manage the business of the partnership without any restriction, unless otherwise agreed by the partners. The different types of partnerships are:-

- Unregistered Ordinary Partnerships, in which all partners are jointly and severally liable without limit for all obligations of the partnership;

- Registered Ordinary Partnerships, if registered, the partnership becomes a legal entity separate and distinct from the individual partners. As such it is liable for corporate income tax; and

- Limited Partnerships, in which a partner's liability is restricted to the amount that is contributed to the partnership. Limited partnerships must be registered.

NOTE: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

If you would like further advice please contact: David Ellis, Johnson Stokes & Master, 16th Floor, Princes Building, 10 Chater Road, Hong Kong; Tel 2843 4226; Fax no. : 2845 9121. Alternatively do a text search "Johnson Stokes and Master" and "Business Monitor".