Educational Information Only
The content on this page is for general educational purposes and does not constitute legal advice. Every legal situation is unique. For matters involving investigation, arrest, litigation, or formal proceedings, consult a qualified legal professional.
Informal Business Partnership Agreement
Agreement for two or more parties entering a business venture in Thailand — profit sharing, responsibilities, and exit terms.
When to Use
When starting a business with a partner (Thai or foreign) before formal company registration. Also useful for joint ventures and profit-sharing arrangements.
Key Clauses
Partner Contributions
What each partner contributes: capital, labor, expertise, property, or equipment. Specify values.
Profit & Loss Sharing
Percentage split for profits and losses. May differ from capital contribution ratios.
Management & Decision-Making
Who manages day-to-day operations. Major decisions require unanimous or majority consent.
Banking & Financial Controls
Who is authorized to sign cheques, make transfers, and approve expenditures above a threshold.
Dispute Resolution
Mediation first, then arbitration or court. Specify jurisdiction.
Exit & Dissolution
How a partner can exit. Buyout terms, valuation method, and dissolution procedures.
Non-Compete
Partners agree not to compete with the partnership during and for X months after.
Warnings
Informal partnerships expose all partners to UNLIMITED personal liability — consider forming a limited company.
Without a written agreement, Thai law applies default partnership rules which may not suit your arrangement.
Foreign Business Act restrictions apply if the partnership involves restricted business activities.
Professional Legal Assistance
When a matter involves investigation, arrest, detention, litigation, or regulatory action, professional legal representation becomes essential.
Anglo Siam Legal provides experienced legal services across Thailand for both Thai nationals and foreigners.
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