Draft ‘one person, one company’ law to Cabinet soon

Bangjongjitt Angsusingh, director-general of the department, said yesterday that the original draft law had been completely reviewed since being withdrawn in August, and would be proposed for Cabinet ratification soon.
The draft bill has been submitted to Deputy Prime Minister Somkid Jatusripitak, who will propose it to the Cabinet, she said.
She insisted that the new law would not restrict any foreign firms from doing business in Thailand, as foreigners would still be able to seek permission to do so under the Foreign Business Act and through the Board of Investment.
Currently, the law requires each company to have at least two partners to form a PCL – a partner limited company – and at least three for a limited company.
Bangjongjitt said the new law should reduce the cost and time involved in business registration as only one person would manage the process, while the overall number of internal disputes would also decline.
After being formally registered as a single-person entity, such SMEs would be recognised and registered in the department’s database so that they have a chance to access funding sources and government support, she added.
Many more companies will be registered in Thailand after implementation of the law, because enterprises currently outside the system will be encouraged to formalise their operations, she said, adding that the number of registered small companies is expected to more double from 620,000 to 1.4 million within two years.
Twelve countries already have a “one person, one company” law – the United Kingdom, the United States, China, Singapore, Vietnam, Germany, Canada, the Netherlands, Italy, New Zealand, India and Japan – she said. 
Malaysia is also considering whether to adopt a similar law.