Establishing a Financial Based Corp in Thailand.

[wjdw]

Background.

 

My UK Company (5 year development) is intensely involved in AI, One of the elements (smaller) is our Financial Side (Financial Markets) the company overall is led by Ex NYSE Director, (i have a backstage role, my interest is solely in Artificial Intelligence), and one of the offerings (currently going through live testing) is a private Hedge Fund (based in US/BVI). 

 

On a pro-rata bases (during extensive experimentation, live running) the returns/growth is roughly 38-42% monthly on one end - or 240% on non equity managed (for those that do not understand the difference between, essentially it comes down to the following, equity managed means losses are restrictive - There's a team of humans in there pulling the trigger, without the 240% could just as easily been -500%).

 

The wife is one of the UK Directors as well as a minority stock holder/board member (alongside numerous others involved). 

 

The wife, looking at Thai financial investment options (as dreary as US/UK/EU establishments) see's an opportunity to establish a financial based institution (vehicle) which funds are then managed in the main pot apposed to Bank ShareSchemes/Investments (think they're 2% per annum currently here).

 

I've always been apposed to Thailand simply because i have significant investments here, but there's enough skilled/experienced/public people involved in the company now to say something has not been overlooked. 

 

Thus i said sure, but then comes the hard piece, how the heck / where does she first begin to search (in the UK we leveraged 10m against CFA) the US is similar bonds, yet in Thailand there is no mention of establishing a financial based corporation nor the requisites. 

Note you often see ponzi's or the like but i doubt they are even financially registered with the authorities, and for peace of mind, or other she has do establish this correctly, and within the full restrictions of the law.

 

Thai Investment Vehicle > Invests in US/UK Investment Hedge Fund. 

Moving funds in and out of Thailand (before anyone sees an issue with this) is 'achievable', without drama, also establishing the company, the only element of difficulty or confusion as i see it, is what specific licenses are required if any.

To note this is pre-firing over to a lawyer we deal with so we at least go in clued up on domestic legalities, as i was informed even forex is illegal here now, would really appreciate any input from someone that has completed specifics with the Thai Financial Authority or the like.

As to the % return (seeming high), it's AI->Trading not Human (Vast Difference) | for anyone that contacts to invest/learn more please understand at this time it's closed to private HNW investors in the US/UK and not open to outside Investors in any capacity. (which is what we're looking at now for it's first offering). For those that like to jump on, and throw e-punches and the like, you are simply wasting your time.

[wjdw]

No information on Thai SEC 

 

http://www.sec.or.th/EN/RaisingFunds/MutualFundOtherProduct/Pages/MutualFundOtherProduct.aspx

[Naam]

11 hours ago, wjdw said:

For those that like to jump on, and throw e-punches and the like, you are simply wasting your time.

 

no need for anybody to throw punches. you are doing an excellent job.

 

Quote

Moving funds in and out of Thailand (before anyone sees an issue with this) is 'achievable', without drama...

 

[lannarebirth]

52 minutes ago, Naam said:

 

no need for anybody to throw punches. you are doing an excellent job.

 

 

 

I imagine the money will be departing Thailand in suitcases but not by the investor / donor.

[LaoPo]

3 hours ago, Naam said:

 

no need for anybody to throw punches. you are doing an excellent job.

 

 

[blackcab]

On 07/10/2017 at 12:07 PM, wjdw said:

...i have a backstage role, my interest is solely in Artificial Intelligence...

 

You have a backstage role for a reason. I would leave this to the business team.

[wjdw]

22 hours ago, blackcab said:

 

You have a backstage role for a reason. I would leave this to the business team.

I'm the prominent owner, CVO, and the person that has financed the entire endeavour, buck stops with me.

[wjdw]

On 10/8/2017 at 12:24 AM, lannarebirth said:

 

I imagine the money will be departing Thailand in suitcases but not by the investor / donor.

No, not at all, (Investor in Revolut) business service releasing in coming months, enables the ability to move within and out of Thailand with ease subject to state restrictions, ease here also means capital can remain in the boarders, as we have 10m bonded in UK/HK that can be utilised.

[blackcab]

On 07/10/2017 at 12:07 PM, wjdw said:

...i have a backstage role, my interest is solely in Artificial Intelligence...

 

29 minutes ago, wjdw said:

I'm the prominent owner, CVO, and the person that has financed the entire endeavour, buck stops with me.

 

[blackcab]

30 minutes ago, wjdw said:

...enables the ability to move within and out of Thailand with ease subject to state restrictions, ease here also means capital can remain in the boarders, as we have 10m bonded in UK/HK that can be utilised.

 

Your business makes no sense. As everyone reading this knows, it is not easy to move money out of Thailand. Transferwise doesn't do it.

 

So fast forward a bit. Customers have been giving you baht in Thailand. You have been giving them the appropriate amount in pounds/euros/dollars from your "bonded" 10m.

 

So when your 10m runs out, what happens next? What are you going to do with you like of baht that is stuck inside Thailand?

 

Please explain.

[Arkady]

I am not very clear from your post exactly type of business you are planning to do in Thailand but it sounds like it would be in a highly regulated area and might require overlapping licences.  Forex needs a licence from the Finance Ministry that needs approval from the Bank of Thailand.  (Local securities companies dealing with foreign clients have been known to wait years for forex licences.)  Asset management needs a licence from the SEC and there are various types of SEC issued corporate and individual financial advisory licences needed for various related activities.  The requirements for application and maintenance of all types of financial licence in Thailand are fairly burdensome and time consuming.  Certain activities are closed to majority foreign owned firms or may need special approvals to operate.  Certain activities are also closed to foreign individuals, e.g. being the CEO of an asset management firm, being the CFO of any type of business. 

 

I have been involved in the finance sector with Thai and foreign companies for nearly 30 years and have also had experience of personal licencing.  Thailand is a highly bureaucratic country and you need to dot all i's and cross all t's to get approvals.  They will not normally make any exceptions for anyone and don't care how interesting your scheme is.  In fact the more innovative it sounds the more suspicious they are likely to be.  They have seen their fair share of foreign scamsters in the financial sector.       

[fletchsmile]

Not very clear at all what you are trying to do.  Hope you word things better for your lawyer. 

 

From what you've written you don't actually have a "live product" in use for the area you are looking to bring to Thailand.

 

Anyone can give "pro-rata % returns" based on "non-live products", which are simply a test environment. 

 

No idea why you think this type of product fits with Thailand either if a legit product. On the other hand if not legit, there's probably a decent fit LOL

 

All in all pretty meaningless on several levels 

 

 

[wjdw]

2 hours ago, Arkady said:

I am not very clear from your post exactly type of business you are planning to do in Thailand but it sounds like it would be in a highly regulated area and might require overlapping licences.  Forex needs a licence from the Finance Ministry that needs approval from the Bank of Thailand.  (Local securities companies dealing with foreign clients have been known to wait years for forex licences.)  Asset management needs a licence from the SEC and there are various types of SEC issued corporate and individual financial advisory licences needed for various related activities.  The requirements for application and maintenance of all types of financial licence in Thailand are fairly burdensome and time consuming.  Certain activities are closed to majority foreign owned firms or may need special approvals to operate.  Certain activities are also closed to foreign individuals, e.g. being the CEO of an asset management firm, being the CFO of any type of business. 

 

I have been involved in the finance sector with Thai and foreign companies for nearly 30 years and have also had experience of personal licencing.  Thailand is a highly bureaucratic country and you need to dot all i's and cross all t's to get approvals.  They will not normally make any exceptions for anyone and don't care how interesting your scheme is.  In fact the more innovative it sounds the more suspicious they are likely to be.  They have seen their fair share of foreign scamsters in the financial sector.       

Correct, 

However the Thai variation would be completed under Thai Financial Services Authority and be a Thai corp managed/owned by a Thai. 

They would then complete their investments with the regulated UK/US fund. 

 

Alternatively to "Full" Thai,  Moving money out/in should not a problem, as the UK/US corp can cover the investment amounts, further US Citz/COO and US Corp has more 'free-reign' within Thailand than say a British based corp thus as i understand fund manuv becomes a lot easier.

I get all these 'Scammers etc bla bla bla', but you don't so easily get registered in the UK/US, further the FCA/SEC are a entered different ball park. 

 

Thanks for the input.
 

Edited October 10, 2017 by wjdw

[dunque]

24 minutes ago, fletchsmile said:

Not very clear at all what you are trying to do.  Hope you word things better for your lawyer. 

 

From what you've written you don't actually have a "live product" in use for the area you are looking to bring to Thailand.

 

Anyone can give "pro-rata % returns" based on "non-live products", which are simply a test environment. 

 

No idea why you think this type of product fits with Thailand either if a legit product. On the other hand if not legit, there's probably a decent fit LOL

 

All in all pretty meaningless on several levels 

 

 

Could be trying to sow the seeds of a ponzi...

[Get Real]

Really sounds that you thought that through carefully. 

[wordchild]

A barge with a very very long pole comes to mind.

[Arkady]

18 hours ago, wjdw said:

Correct, 

However the Thai variation would be completed under Thai Financial Services Authority and be a Thai corp managed/owned by a Thai. 

They would then complete their investments with the regulated UK/US fund. 

 

Alternatively to "Full" Thai,  Moving money out/in should not a problem, as the UK/US corp can cover the investment amounts, further US Citz/COO and US Corp has more 'free-reign' within Thailand than say a British based corp thus as i understand fund manuv becomes a lot easier.

I get all these 'Scammers etc bla bla bla', but you don't so easily get registered in the UK/US, further the FCA/SEC are a entered different ball park. 

 

Thanks for the input.
 

 

US persons and corporations are exempted from certain provisions of the Foreign Business Act due the Thai-US Treaty of Amity and Economic Relations.  That means they can obtain an alien business licence to own majority stakes in businesses in most sectors usually without too much trouble.  However, the treaty specifically excludes the finance and logistics sectors.  Therefore, it would not be of any help in this case.  Nevertheless, the Bank of Thailand and the SEC are empowered to permit up 100% foreign owned banks, securities and asset management companies, subject to various strict criteria, including substantial investment, paid-up capital etc. 

 

Many asset managers avoid the regulations by setting up either representative offices or local corporations to provide services, such as research and administration, to offshore based funds that are actually controlled by them.  The SEC knows that they are actually managing funds in Thailand without licences but turns a blind eye as long as they are not actively raising funds from Thai residents.  The latter need to have funds offshore to invest with them but mainly these funds are raising money from foreign institutions such as family offices and funds of funds and local investors are just wealthy friends.