Financial Requirements for Thai Shareholders in a Land Acquisition Company (100 Million Baht Purchase)
General Structure and Legal Context
Thai law permits a company to own land if the majority of shares (over 50%) are held by Thai nationals. However, the use of nominee Thai shareholders to facilitate land acquisition by foreigners is strictly prohibited. Authorities closely scrutinize the financial backgrounds of Thai shareholders to ensure they are genuine investors and not acting as proxies for foreigners14.
Financial Requirements for Thai Shareholders
When a company (including one purchasing land worth 100 million baht) is set up to acquire land, the Thai shareholders must demonstrate their financial capability to invest in the company. Specifically:
Proof of Income and Salary: Thai shareholders must submit proof of their income and monthly salary. This is to verify that they have the financial means to purchase their shares and are not acting as nominees1.
Source of Funds: Authorities investigate the origin of the funds used by Thai shareholders to acquire their shares. If the funds appear to originate from the foreign party (for example, through loans or gifts), the application may be rejected14.
Professional and Financial Background: The profession and income of Thai shareholders are taken into account. For example, a shareholder cannot be a low-income individual such as a cleaner from the law firm setting up the company14.
No Nominee Arrangements: Any arrangement where Thai shareholders are not genuine investors or do not have the financial capacity to hold their shares will result in the rejection of the land purchase application14.
Summary Table: Key Financial Requirements
Requirement
Details
Proof of Income/Salary
Must be provided by each Thai shareholder
Source of Funds
Must be verifiable and not traceable back to the foreign party
Professional Background
Must be credible and consistent with the shareholder’s financial capacity
No Nominee Shareholders
Strictly prohibited; Thai shareholders must be genuine investors
Additional Notes
If the company is BOI-promoted and meets specific criteria (such as a minimum paid-up capital of 50 million baht), different rules may apply, but these are not relevant to the standard land acquisition company structure described above235.
The authorities’ scrutiny has intensified, and any suspicion of nominee arrangements can result in rejection of the land purchase application14.
In summary, Thai shareholders in a land acquisition company must provide clear evidence of their financial capacity to invest, and their funds must not originate from or be controlled by foreigners. The use of nominee shareholders is illegal and will result in the rejection of the land purchase.
Citations:
https://www.samuiforsale.com/knowledge/land-holding-company-structure.html
https://franklegaltax.com/boi-revises-regulations-for-land-ownership/
https://belaws.com/thailand/land-ownership-rights/
https://www.lorenz-partners.com/owners-property-tha/
https://belaws.com/thailand/real-estate-law-in-thailand/
https://benoit-partners.com/real-estate-investment-thailand/
https://www.boi.go.th/index.php?page=setting_up_a_business
https://www.siam-legal.com/thailand-law/steps-for-company-registration-in-thailand-2/
https://www.dsi.go.th/Upload/392a03a714cbda9d4972a5fda6cc1b51.pdf
http://www.thailandlawonline.com/66-real-estate-legal-issues/14-can-a-thai-company-be-my-nominee-for-land-acquisition
https://startupinthailand.com/buying-property-in-thailand-through-a-thai-business/
https://www.sunbeltasia.com/setting-up-a-100-percent-foreign-owned-company-in-thailand-what-are-the-options/
Answer from Perplexity: pplx.ai/share