LTD Company Advice for House Purchase

[Matty81]

Hi,

 

I have only ever rented in Thailand so Im a newbie in regards to owning property so looking for some advice please

 

Im looking to buy a house in the next few months and need some info on setting up LTD Company

 

Any advice on people/company to use to setup?

 

Approx cost to setup and cost every year to maintain the company?

 

 

Thanks in advance

 

 

[jackdd]

Don't do it, just rent. If you want to invest in property better invest in something that you can legally own.

[Boarn]

28 minutes ago, jackdd said:

Don't do it, just rent. If you want to invest in property better invest in something that you can legally own.

Our company owns a few properties that we use for our business, nothing at all wrong with it, fully legitimate and legal.

 

To the OP, if the sole purpose of the company is to own the property then tread carefully, 99.9% you'll be fine but it isn't strictly allowed, if you intend to use the company, get a WP and turnover funds it would be better.

 

[Peterw42]

A quick google search "thailand company setup cost"

you will find several companies advertising their services and fees.

 

 

 

 

[Delight]

 The 1st thing to investigate is will the land office located in the area where you intend-actually allow you to transfer to a company set up.

You only need to set up  company if :

A it is a new build

B Currently owned by Thais

 

Buying a property in an existing company is your best option.

 

It only costs about 10.000 Baht to transfer  names.The seller may pay this.

 If you go down this route then you are advised to hire your accountant to ensure that all is straight forward with this existing comany set up

[Matty81]

Thanks for the info

 

It is a new build and the developer is Thai so looking like I will need to set one up

Edited September 3, 2021 by Matty81

[Matty81]

14 hours ago, Delight said:

 The 1st thing to investigate is will the land office located in the area where you intend-actually allow you to transfer to a company set up.

You only need to set up  company if :

A it is a new build

B Currently owned by Thais

 

Buying a property in an existing company is your best option.

 

It only costs about 10.000 Baht to transfer  names.The seller may pay this.

 If you go down this route then you are advised to hire your accountant to ensure that all is straight forward with this existing comany set up

Thanks for the info

 

It is a new build and also the developer is Thai so will have to set one up going by that then

 

 

[WhiteBuffaloATM]

dont do it. straight up illegal for foreigners to put only their residence into a thai company ,which thai “nominee” directors will have legal majority owner control. You would a minority company shareholder with little or no power. just funding the set up. Not a “ business” unless permanently rented out or used as business premises. So you will not “own” the company/ freehold / property / land which the thai directors can take from you for any reason at any time plus 500k “tax & costs” to close the thai company plus 40-50k for annual accounts & taxes. If leaving the chanote property title deeds with thai directors they can get bank loans secured against “your” property without your consent or knowledge.

 

In short, a very bad expensive move, foreigner freehold condo or leasehold house is under your full legal ownership & salelable & transferable. you can never own the land, only the land lease, but the house itself can be owned separately as foreigner freehold.

 

 

[Delight]

13 minutes ago, WhiteBuffaloATM said:

 So you will not “own” the company/ freehold / property / land which the thai directors can take from you for any reason at any time plus 500k “tax & costs” to close the thai company plus 40-50k for annual accounts & taxes. If leaving the chanote property title deeds with thai directors they can get bank loans secured against “your” property without your consent or knowledge.

 

 

 

 

 When you purchase  house using a  Thai Company then :

A the Foreigner does not own the Company

B the Foreigner does not own the house

 

Assming the Company is set up 'fit for purpose' - you will have 100% voting rights plus a share allocation -49% or less.

The share allocation just makes you feel comfortable.

It is the voting rights that count,. The other shareholders cannot out vote you. In fact they cannot vote at all.

As I stated before -ensure that your local land  office will accept the arrangement.

 

Costs- My info is out of date -however the cost to set up a Company I suspect with be in the region of 30,000  Baht.

Given that it is a new house the LO transfer fees will also need to be paid.

Share these with the developer if you can.

[Yellowtail]

Unless you non-Thai beneficiaries, how is buying or owning a home with a company better than with a usufruct? 

 

Unless you have pretty expensive property or a real business the cost of setting up the company and the annual costs associated with maintaining it seem prohibitive. 

[Delight]

56 minutes ago, Yellowtail said:

Unless you non-Thai beneficiaries, how is buying or owning a home with a company better than with a usufruct? 

 

Unless you have pretty expensive property or a real business the cost of setting up the company and the annual costs associated with maintaining it seem prohibitive. 

 Annual audit 10,000 Baht.

A pain but not prohibitive. 

 

The major benefit of buying via the company route is that the house becomes so easy to sell.

The OP simply needs to transfer  all that he actually   owns i.e. His share allocation and his voting to a foreign buyer. This carried out for the price of the property.

Typical cost for this transaction- 10,000 Baht

 

Easy. The LO are not involved -neither are the other share holders.

Must be the lowest cost way to 'sell' a property-any where on the planet.

 

Usufruct is perfect if you plan  to die before your Thai spouse/girlfriend