Probe finds 5 suspected local-nominee business services for foreigners

[webfact]

Probe finds 5 suspected local-nominee business services for foreigners

By The Nation

 

 

A probe by the Department of Business Development has turned up five juristic entities suspected of using local nominees to illegally help foreigners invest in Thailand this year.

 

Director-general Thosapone Dansuputra said the probe covered tourism, property and hotel businesses in Thailand's key tourism provinces of Phuket, Chiang Mai, Krabi, Surat Thani, Petchaburi, Prachuab Kirikan, Bangkok and Chonburi.

 

Thai nominees are often used by foreigners to do business or hold stakes in companies in Thailand, thereby breaching the Foreign Business Act, BE2542 (1999).

 

Of the five suspected cases, two are in the tourism sector and three in property businesses. Four are in Chonburi and one is in Prachuap Khiri Khan.

 

The department has forwarded its findings for further investigation by the Department of Special Investigation (DSI).

 

Breaches of the Foreign Business Act are punished with up to three years in jail and/or a fine of Bt100,000 to Bt1 million.

 

Source: https://www.nationthailand.com/business/30398237

 

-- © Copyright The Nation Thailand 2020-11-23

 

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[quake]

cue the next witch hunt, blame game 

 

[Mr Meeseeks]

We just had to submit ownership documents for one of my companies (non-BOI) to the DSI and I had to attend an interview. We are completely legal. 

 

During the interview they asked at length about foreign ownership and whether our Thai shareholders were proxies. They are not as they are active members of the board and two of them work for the company. 

[RichardColeman]

4 hours ago, webfact said:

Thai nominees are often used by foreigners to do business or hold stakes in companies in Thailand, thereby breaching the Foreign Business Act, BE2542 (1999).

One day Thailand will enter the 21st century - or even the 20th  !

[PatOngo]

9 minutes ago, RichardColeman said:

One day Thailand will enter the 21st century - or even the 20th  !

Optimist!

[ChrisY1]

And let me guess....none in little India or arabia land in Sukhumvit....?

Pay the fare, and there'll be no issues is what this is all about!

[ChipButty]

It's like opening a can of worms in Phuket

[fangless]

Only 5!

55555

[ThailandRyan]

Nationalities and names of the supposed companies would be nice.  Names of the new Hotels being built or that have been purchased, which Tour Package operations, which Zero Dollar Tour Bus companies?  The news report leaves so many unanswered questions that could have been answered instead of just saying 5 Juristic entities.  If they are Juristic entities, who are the Thai's that set these companies in motion, how much was the bribe paid, are the Thai individuals connected, and better yet will there be more reporting on this or will it just fade away due to connections and money paid to make it go away.

[Colabamumbai]

4 hours ago, quake said:

cue the next witch hunt, blame game 

 

Dinosaurs don't want money invested here. 

[Colabamumbai]

Start with the sinking of the boat full of Chinese tourists. Chinese tour company. Chinese married Thai lady, she was the nominee. 

[madmitch]

1 hour ago, ChrisY1 said:

And let me guess....none in little India or arabia land in Sukhumvit....?

Pay the fare, and there'll be no issues is what this is all about!

Probably no Chinese either.

[ChipButty]

13 minutes ago, Colabamumbai said:

Start with the sinking of the boat full of Chinese tourists. Chinese tour company. Chinese married Thai lady, she was the nominee. 

He did a runner I think..........?

[nobodysfriend]

5 hours ago, webfact said:

Thai nominees are often used by foreigners to do business or hold stakes in companies in Thailand, thereby breaching the Foreign Business Act, BE2542 (1999).

 

5 hours ago, webfact said:

three in property businesses

To set up a thai company with the sole intention of buying land in Thailand , is nothing more than a tolerated loophole .

Not really legal , they planned a crackdown on this a long time ago already , but never did ...

[Bluedan]

Lets face it most Ex pat owned small businesses in Thailand use nominees. It's relatively easy (even if expensive and time consuming) to comply with all other administrative and legal requirements, but not this one. Where does one find 51% genuine Thai shareholders who will genuinely invest in a new business? To meet the letter of the law they must invest a commensurate amount of capital or at least intellectual property of other valued assets. Every few years a crackdown is threatened. It would be really easy to do an audit of all of these businesses (simply check who are the 51% and ask for evidence of their contribution) and close them down which would be just great for all of the Thai staff they employ. Its a case of deliberately  setting the bar too high and then putting ones hand out for tea money to turn a blind eye.

[ChipButty]

16 minutes ago, nobodysfriend said:

 

To set up a thai company with the sole intention of buying land in Thailand , is nothing more than a tolerated loophole .

Not really legal , they planned a crackdown on this a long time ago already , but never did ...

Every couple of years this comes up, Phuket would grind to a halt

[Old Croc]

I seem to recall the can of worms has been opened in Phuket.

There has been several auctions of seized assets including many tour boats and fleets of buses of the bogus Chinese company Tranlee Travel Co. This was a result of the boat sinking a couple of years ago.

Other companies in the rubber products and jewellery business have been identified as money laundering enterprises.

[dave moir]

1 hour ago, ThailandRyan said:

Nationalities and names of the supposed companies would be nice.  Names of the new Hotels being built or that have been purchased, which Tour Package operations, which Zero Dollar Tour Bus companies?  The news report leaves so many unanswered questions that could have been answered instead of just saying 5 Juristic entities.  If they are Juristic entities, who are the Thai's that set these companies in motion, how much was the bribe paid, are the Thai individuals connected, and better yet will there be more reporting on this or will it just fade away due to connections and money paid to make it go away.

The $1,000,000 questions!????????????????

 

[Mr Meeseeks]

52 minutes ago, nobodysfriend said:

 

To set up a thai company with the sole intention of buying land in Thailand , is nothing more than a tolerated loophole .

Not really legal , they planned a crackdown on this a long time ago already , but never did ...

Not exactly a loophole, it is 100% illegal according to the land ownership laws. It is almost completely ignored, not sure about tolerated, as the majority don't know it happens.

 

Wait until some pee'd off hi-so starts making a fuss about it then we'll see how tolerated it is once the majority knows loads of foreigners own land through nominee shareholding companies. 

 

Cue the tears and snotters from the expats that sail close to the wind when they do eventually do something about it. 

 

 

[OnTheRun]

1 hour ago, ChipButty said:

Every couple of years this comes up, Phuket would grind to a halt

Last week it was invest a million dollars and we'll give you a visa. This week it's we're going to hunt you down. The usual double talk madness.

[PatOngo]

7 hours ago, webfact said:

Thai nominees are often used by foreigners to do business

Yes, always the Thai enabler!

[SomchaiCNX]

So change the law similar to other countries in the world and the problem is solved overnight. Or.........we should treat all Thai the same once they leave their country. No house, no property no car no phone no job no insurance. Confiscate all Thai property and companies in the west and lets see how they react ????  To many stupid anti foreigner rules over here and it is not getting better.

[ThailandRyan]

5 minutes ago, OnTheRun said:

Last week it was invest a million dollars and we'll give you a visa. This week it's we're going to hunt you down. The usual double talk madness.

Invest in only what they want you to invest in. They have to make sure it gets to the right pockets and is not usurped before those with deep pockets get their fair share.  Plus they need to watch it for 5 years before they will give you that coveted work permit. Makes me believe that after 5 years the investment will be gone and the WP needed so that one can start to recoup what they lost.

 

Just sold some more Bitcoin as it edged into the 18k realm and bought another house in the US with my Daughter.  Never will I invest more than I can walk away from here.  I could walk away and let what I have go to my Thai friends who would be very happy.

[PatOngo]

Just now, SomchaiCNX said:

So change the law similar to other countries in the world and the problem is solved overnight.

Next you'll want to educate them! 

[SomchaiCNX]

Just now, PatOngo said:

Next you'll want to educate them! 

Tried to do that with my wife for the last 30 years or so ... you may guess the result   ???? .

No, they make so many rules that on paper it always will be illegal for a foreigner to do anything that would be normal somewhere else. Driving your own car with your company advertising and it is illegal for you as a foreigner to drive it. 

[Mr Meeseeks]

7 minutes ago, SomchaiCNX said:

So change the law similar to other countries in the world and the problem is solved overnight. Or.........we should treat all Thai the same once they leave their country. No house, no property no car no phone no job no insurance. Confiscate all Thai property and companies in the west and lets see how they react ????  To many stupid anti foreigner rules over here and it is not getting better.

Our governments and authorities don't have the minerals to implement reciprocal laws.

 

Totally spineless and inept.

 

The Thais are laughing! Well off Thais can do pretty much anything they want in Britain.

[Mr Meeseeks]

3 minutes ago, SomchaiCNX said:

Driving your own car with your company advertising and it is illegal for you as a foreigner to drive it. 

Only if you do not have a work permit. If you have a work permit in any capacity with that company it is ok.

[SomchaiCNX]

Just now, Mr Meeseeks said:

Our governments and authorities don't have the minerals to implement reciprocal laws.

 

Totally spineless and inept.

 

The Thais are laughing! Well off Thais can do pretty much anything they want in Britain.

Same same across the Chanel  ????  

[ChipButty]

4 minutes ago, Mr Meeseeks said:

Our governments and authorities don't have the minerals to implement reciprocal laws.

 

Totally spineless and inept.

 

The Thais are laughing! Well off Thais can do pretty much anything they want in Britain.

I remember some Thai asking me can they buy a car in Britain, if you got Cash you can buy anything

[SomchaiCNX]

Just now, Mr Meeseeks said:

Only if you do not have a work permit.

May be true but a friend with a company and work permit got a warning as only Thai can drive professionally. (he was alone in the van)