Our accountant has recently informed us that our company ( 49% English 51% Thai, 2 foreign shareholders and 5 Thai nationals) now has to change to a ratio of 30% foreign and 70% Thai.

Has anybody heard about this??

Thanks

i've been doing company paperwork today with my lawyer and he has'nt mentioned anything about this.

Our accountant has recently informed us that our company ( 49% English 51% Thai,  2 foreign shareholders and 5 Thai nationals) now has to change to a ratio of 30% foreign and 70% Thai.

Has anybody heard about this??

Thanks

What kind of company?

We have a manufacturing company in Thailand, 100% European, no Thai shareholding (possible after the 1997 crisis).

But I guess there are still restrictions on companies not involved in any business like the ones foreigners set up to buy land.

And maybe even more restrictions these days.

i think the percentage is still the same but if a foreigner own more that 39%?? then the government will look into the company.

if they own 30%?? then they dont bother.

i think its just a way of keeping your head down and outta view

The question to ask you accountant is "What bad thing will happen to us if we do not change shareholder structure"?

Come back here and post his/her reply.

With the percentages you state, you are legally a Thai-owned company - by the definition laid out at: http://www.thailawforum.com/database1/foreign.html (see Section 4).

I can think of no reason why a "Thai" company must reduce foreign shareholdings to 30% or less.

Cheers!

Steve

Indo-Siam

Ian,

There have not been any recent changes in the Commercial Code or the Foreign Business Act which would necessitate a reduction if the foreign shareholding of Thai companies. However, one needs to look beyond general principles in many instances to see where the proposed changes are coming from. What type of business is your company involved in? Sometimes there are specific regulations relating to particular industries which may be relevant. Have you plans to purchase land in the near future? Some people suggest that a Thai company which purchases land should have a foreign shareholding of less than 40% if there is a land purchase involved - becuase the law used to say that if it was at 40% or more the local authorities couldn't register the land transfer but had to send it off for approval at a higher level. This regulation was, however, removed last year.

Generally, however, Steve is correct. Ask your accountant why he/she is suggesting the changes - then ask for the laws/regulations upon which his suggestions are based. Please post your results.

Bob

Thanks everybody,

What a great place to get info.

I have a dive company which is a Ltd company. I will let you know what the accountant has to say.

Thanks again