Relevant Contracts: 

A variety of contracts are negotiated in establishing a Joint Venture including the following: Intellectual Property, technical Assistance Agreements, management Agreements, and Shareholder Agreements.  

The joint venture agreement, in most cases, provides for the constitutional documents involving the joint venture company to be formed. This is in addition to the agreements referred to above. The Memorandum of Association which outlines in detail the objectives of the company is the first of such documents.

Sometimes the case that a foreigner wishes to avoid any direct involvement in a Thai business organization. Alternatively, he may wish to use only Technical Assistance Agreements, Supply of Material Agreements, Trademark Licensing Agreements, and other arrangements.  

The Ministry of Commerce may require a company to abandon goals which are forbidden to foreigners if they are owned by a foreign majority. A Memorandum with 40 objectives belonging to the Ministry of Commerce may be used by a Thai majority company, or they may create their own memorandum. More often than not, the Memorandum is not an issue of contention between the parties to a joint venture. 

The Board of Investment may require that joint ventures deposit with them agreements concerning the transfer of know-how and technology related to the companies promoted by the BOI.

 

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