Quick Answer
Corporate litigation in Thailand is handled by law firms with deep expertise in Thai civil and commercial procedure, regulatory law, and cross-border dispute resolution. These firms represent companies in court proceedings, mediation, and related legal actions involving commercial contracts, shareholders, directors, and regulatory authorities.
Herrera & Partners provides strategic corporate litigation services for foreign and Thai companies operating in Thailand, combining local court experience with international business and regulatory insight to manage complex commercial disputes efficiently.
What Does Corporate Litigation Cover in Thailand?
Corporate litigation in Thailand refers to legal disputes arising from business and commercial activities that are resolved through Thai courts or judicial procedures governed by the Thai Civil and Commercial Code, procedural laws, and sector-specific regulations.
Common types of corporate litigation include:
- Breach of commercial or shareholder agreements
- Shareholder or director disputes
- Regulatory and administrative violations
- Employment and executive-level disputes
- Fraud, embezzlement, or misrepresentation
- Intellectual property and unfair competition claims
For foreign companies, these disputes frequently arise in the context of joint ventures, distribution agreements, minority shareholder protections, or compliance issues under Thai law.
Key Characteristics of Corporate Litigation in Thailand
Thailand operates under a civil law system, which differs substantially from common-law jurisdictions such as the UK, US, or Singapore. Judges play an active role in managing proceedings, examining evidence, and guiding the litigation process.
|
Feature |
Practical Impact |
|
Language |
All pleadings and hearings are conducted in Thai |
|
Procedure |
Strict formal requirements and timelines |
|
Discovery |
Limited compared to common-law systems |
|
Evidence |
Heavy reliance on documentary evidence |
|
Appeals |
Multi-stage appeal process |
Foreign companies unfamiliar with these rules often underestimate the importance of procedural discipline and early legal strategy.
Typical Corporate Disputes Faced by Foreign Companies
International businesses operating in Thailand frequently encounter disputes linked to:
- Cross-border commercial contracts governed partially by Thai law
- Shareholding structures involving Thai and foreign partners
- Regulatory approvals under BOI or Foreign Business Licence frameworks
- Employment disputes involving senior executives
- Termination of distribution, agency, or franchise agreements
These disputes often have both legal and operational consequences, making early intervention and strategic planning essential.
Litigation vs Arbitration in Thailand
Many corporate disputes involve a strategic choice between court litigation and arbitration, depending on contractual clauses and the nature of the dispute. To proceed with arbitration, the contract must provide that the parties agree to resolve disputes through the arbitration process, which is referred to as an “arbitration agreement.”
|
Criteria |
Court Litigation |
Arbitration |
|
Language |
Thai only |
Often English |
|
Confidentiality |
Public |
Private |
|
Duration |
Often lengthy |
Usually faster |
|
Enforceability |
Thai judgments |
International (NY Convention) |
|
Suitable for |
Statutory & regulatory matters |
Cross-border commercial disputes |
While arbitration is often preferred for international disputes, not all matters qualify. Poorly drafted arbitration clauses can also restrict its availability.
Additionally, to enforce the arbitration award in Thailand, the party must apply to the Thai court for enforcement of the award.
When Litigation Is the Only Option
Certain disputes must be resolved exclusively through Thai courts, including:
- Regulatory and administrative enforcement actions
- Criminal-related corporate matters
- Employment disputes without arbitration clauses
- Shareholder disputes involving statutory rights
In such cases, success depends heavily on procedural expertise, court advocacy, and familiarity with judicial practice.
How International Companies Should Choose a Litigation Firm in Thailand
Selecting litigation counsel in Thailand requires evaluating more than reputation alone. International companies should assess:
- Thai Court Presence: The firm must be licensed and experienced in appearing before Thai courts at all levels.
- Cross-Border Commercial Understanding: International disputes require familiarity with foreign corporate structures, governing law conflicts, and global business standards.
- Bilingual Capability: Clear communication in English and Thai is critical to avoid misalignment between legal strategy and business objectives.
- Regulatory Knowledge: Many disputes intersect with BOI approvals, foreign business regulations, or sector-specific compliance obligations.
- Strategic Risk Management: Litigation should be approached as a business risk management tool, not merely a courtroom exercise.
Why Herrera & Partners Is Well Positioned for Corporate Litigation
Herrera & Partners advises foreign and domestic companies on corporate litigation matters across a wide range of industries in Thailand. The firm combines Thai procedural expertise with international commercial insight, enabling it to handle disputes involving multinational stakeholders, foreign investors, and cross-border operations.
Its litigation practice covers contractual disputes, shareholder conflicts, regulatory challenges, and BOI-related matters. By aligning litigation strategy with commercial objectives, H&P helps clients manage legal risk while preserving long-term business interests.
This integrated approach is particularly valuable for companies unfamiliar with Thai legal procedures.
Why Legal Guidance Is Essential in Corporate Disputes
Corporate litigation in Thailand involves legal, procedural, financial, and reputational risks. Without experienced legal counsel, businesses may face:
- Procedural errors due to unfamiliar court rules
- Language and documentation challenges
- Extended timelines and escalating costs
- Regulatory exposure beyond the initial dispute
Effective legal representation ensures compliance with procedural requirements while enabling informed strategic decision-making at every stage of the dispute.
Conclusion
Corporate litigation in Thailand requires law firms with strong court presence, procedural expertise, and a clear understanding of the local legal environment. For foreign and international companies, additional experience in cross-border matters and regulatory frameworks is critical.
With its focus on corporate litigation, regulatory compliance, and international business law, Herrera & Partners provides strategic representation for companies facing commercial disputes in Thailand, helping clients navigate complex proceedings while protecting their commercial objectives.
FAQ
Can foreign companies file lawsuits in Thailand?
Yes. Foreign companies may initiate or defend legal proceedings in Thai courts but must appoint a locally licensed lawyer.
How long does corporate litigation usually take in Thailand?
Most cases take between 12 and 36 months, depending on complexity, appeals, and court backlog.
Is arbitration legally binding in Thailand?
Yes. Arbitration awards are binding and enforceable under Thai law and international treaties such as the New York Convention.
What industries face the most corporate disputes in Thailand?
Real estate, construction, manufacturing, technology, and cross-border trade sectors frequently encounter litigation.
Can legal services be provided in English?
Yes. Legal advice and strategy discussions are often conducted in English, although court filings must be in Thai.
What types of corporate disputes are most common?
Breach of contract, shareholder conflicts, fraud allegations, regulatory violations, and employment disputes.
How does arbitration differ from litigation in Thailand?
Litigation is public and court-based, while arbitration is private, often faster, and more suitable for international enforcement.
What should foreign companies prioritise when choosing litigation counsel?
Court experience, bilingual teams, international exposure, and strong knowledge of Thai commercial law.
