'One person, one firm' mulled

Currently, Thai law requires each company to have at least two partners for a partner company limited and at least three for a limited company.

The department’s director-general Pongpun Gearaviriyapun said yesterday that the new law should be able to help reduce costs and time and prevent disputes, as a single individual would be able to set up his or her own company.

Twelve countries already have such a “one person, one company” law. They are the United Kingdom, the United States, China, Singapore, Vietnam, Germany, Canada, the Netherlands, Italy, New Zealand, India and Japan. If Thailand adopts this law, it will be the 13th in the world to do so, and the third in Asean. Malaysia is also looking into adopting a similar law.

Pongpun said that if this law could be enacted, many small businesses would be able to save costs and time while avoiding complex registration procedures, as only one person could manage the process. The law should also reduce internal disputes.

Chulalongkorn University has been commissioned to study the potential of this type of law, and Pongpun said all of the enterprises contacted by the university had agreed with the idea and were looking forward to a bill.

After the public hearing process, the department is expected to propose the draft act for consideration by the commerce minister and the Cabinet next month. It hopes the Cabinet will fast-track the ratification process so that it can become law next year.

After its implementation, Pongpun projects that there will be more companies registered in Thailand, because enterprises currently outside the system will be encouraged to register.

Within two years of the implementation of this bill, the number of registered companies is expected to double from 620,000 to 1.4 million, she added.

According to the draft, an individual would be able to set up only one company. However, that person could still own a separate company.