Who has a good legal to set up Thai Company for Home Purchase - Pattaya

[Longwood50]

Looking to purchase and need a good but modestly priced legal firm to set up a Thai company. 

I am in Pattaya

I am purchasing a vacant lot to build on.  I have been told different things in regards to the capitalizaiton of the company.  Some have said 1 million others say the price of the lot.

I have also heard about due dilligence on the Chanote.  I am wondering what that involves given the Chanote should record any encumberances and it is my understanding if there is a loan against the Chanote the lender keeps it. 

So wouldn't looking at the Chanote, seeing no liens and the fact that the seller has the Chanote be proof that it was free and clear.  


 

[ezzra]

I have been using this very nice lady lawyer by the name of Patchara Lennie (018094491)  been in the business for many years and helped many guys with all sorts of legal works including forming companies for all sorts of purposes charging reasonable fees and 100% trustworthy.

[Sandboxer]

Doc forgery is rampant so DD on the status of the property/land should be done professionally i.e. by competent lawyer/land office. Just in the news today, and "only" a condo....

 

 

Not even gonna go into the whole "it's illegal, not a gray zone" aspect...

 

https://www.lawyersforexpatsthailand.com/post/do-you-own-a-villa-in-thailand

[edwardflory]

IF you are a foreigner, the general rule is you can not OWN land ( lot? ). Maximum time you can own land if your spouce dies and spouce owns land ( tera firma ), and gives to you in a will, is 1 year, if I am not mistaken, Setting up a company, ...JUST... to own / buy / purchase land ( and build a house ), IF you are not Thai, is not a good idea at all..

[Thalueng]

If you want to establish a Thai company to purchase the land you will need 2 share holders (since March this year, before 3 were required), and the required minimum share capital is 1m Thai Baht (price of the lot has nothing to do with opening a Thai limited company). You are obviously one of the share holders, the other one must be Thai, for example your wife or anyone else, and must prove his or her 510k (equal to 51%) in a bank account in his/her name only prior to establishing the company. You can establish sole authority to run the company. The process takes 1-2 weeks. I'm using Tuk accounting for all my accounting and legal needs, google and you find their details, they have very reasonable fees, are reliable, and they have an office in Pattaya. They can also help you checking the Chanote, obviously.

[firemans35]

3 hours ago, Thalueng said:

If you want to establish a Thai company to purchase the land you will need 2 share holders (since March this year, before 3 were required), and the required minimum share capital is 1m Thai Baht (price of the lot has nothing to do with opening a Thai limited company). You are obviously one of the share holders, the other one must be Thai, for example your wife or anyone else, and must prove his or her 510k (equal to 51%) in a bank account in his/her name only prior to establishing the company. You can establish sole authority to run the company. The process takes 1-2 weeks. I'm using Tuk accounting for all my accounting and legal needs, google and you find their details, they have very reasonable fees, are reliable, and they have an office in Pattaya. They can also help you checking the Chanote, obviously.

This explanation of how to form your company sounds about right. I use to live in Pattaya and had a company formed and I knew the process but I'm sure it changed a little. I would go with this. Having said that, A few years ago I read forming a company with Thai share holders can of course be done but the Thai government may crack down on foreigners forming a company with Thai's that didn't in fact actually have the money or weren't actually in control so buying land and then losing or having to sell may be something that could happen. 

[firemans35]

While writing my last post a story popped up, i clicked the link finished my post the read the story. Not long into it this was said "In reality all they have is 4.9 per cent of a company (there were  10 foreign investors) ,Foreigners can only have a maximum of 49 per cent shareholding in a Thai company. It is illegal for a foreigner to set up a company for the sole purpose of trying to own property." 

In reality all they have is 4.9 per cent of a company (there were  10 foreign investors) ,Foreigners can only have a maximum of 49 per cent shareholding in a Thai company. 

If the Thai company is set up correctly without using nominee shareholders who can prove that the capital for setting up the company was from their funds and the company is a genuine company trading and employing staff and paying taxes the company can own property.

But this does not make the property the ownership of the foreigner it is the ownership of the company.

Buying property in Thailand through a Company can therefore be illegal if you do not follow the law and is thwarted with many complications and dangers.

[firemans35]

7 hours ago, ezzra said:

I have been using this very nice lady lawyer by the name of Patchara Lennie (018094491)

LINE? Website?

[NONG CHOK]

Firstly totally forget that idea and secondly is actually illegal.

[AustinRacing]

Surely this is a windup. And those freely handing  out peoples names to help him beak the law overtly. Be careful. Covertly anything is possible here!!!

[jcmj]

Just because you own your own condo in your name doesn’t mean that they can’t make some law in the future that will change your rights and seize it as well. It was done in Mexico about 30 years ago. I highly doubt that will happen, and I doubt that they will ever crack down on Companies owning houses. It’s been thrown out there for years but nothing has happened yet and I don’t think they want to do all that work to find the ones done for this reason. Sure it may but as long as you keep your business private, you should be ok. Not a wise choice to ask on a forum. Easy enough to just ask friends and find a lawyer. But a little late on that one. In any case Thailand will do what it wants when it wants and we have no rights. 

[Delight]

 If I were you-I would use an accountant. Your transaction is about commercial law -not criminal law.

Accountants specialize in the former. they are also much cheaper.

[firemans35]

More bd news for you if you are setting up a company to buy land. The last paragraph says

“There are about 100 companies which have been registered by foreigners with this company. Of those, 44 companies are involved with land which have cost about 100 million baht of damages. Most of their customers are Russians. 

 

[ThaiLawOnline]

On 6/2/2023 at 11:46 AM, Sandboxer said:

 

Not even gonna go into the whole "it's illegal, not a gray zone" aspect...

 

https://www.lawyersforexpatsthailand.com/post/do-you-own-a-villa-in-thailand

This lawyersforexpatthailamd.com is a joke. I am 99.9% sure that he never been a lawyer. He might have his wife as a lawyer and I know my ex assistant who is a Thai lawyer works with him.

 

Why is this a joke?

 

Can a foreigner own a villa in Thailand? Answer is YES.

because you can make superficies agreement and you will own the top of the land, meaning the building which is not restricted only to Thai.I am not talking about land, but the villa, yes.

 

Second argument, if a person invest 40 million baht under certain condition by a decree, a foreigner can own 1 rai of land.

 

Third, he does not talk about the rights of Sap Ing Sith, which is limited to 30 years (I do see how to make an addendum and guarantee 60 years) which is limited, yes, but you fully own your property.

I wrote an article on it here : https://thailawonline.com/sap-ing-sith-thailand/

 

Then he is right about one thing : you can not use an indirect way to own something indirectly, like with a company, that you can not directly, But this guy forgot to talk  about the MOST important thing: it is not that you own 49% max of the shares, is that you own majority of the votes and you control the company, you had other agreements, like the shareholders borrow your money to buy their parts of shares, and you sign powers of attorney and copies of ID with additional loan agreements.  That is perfectly legal to own majority of the votes in a Thai limited company and perfectly legal to loan money to a shareholders. I actually sign other agreements with shareholders but this “lawyer for expats” in Thailand, who might have started to do legal service in Khon Kaen a year or two ago, I do not know, does not give you one case, not one case where a foreigner lost a property to the government claiming that nominees were used. I am not promoting nominees, I am telling you that some Thai structures of company can protect you and he building itself, can be property of a foreigner with limitations for marital property is the foreigner is married.

 

Really, you can read anything on forums, about  ufos, about Elvis is still alive, and that foreigners can not own a building? Does he also forget about the BOI that can grant ownership of land? What about if the kind gives land to a foreigner? I have seen that one time only. And what about article 86 to 93 of the land code if my memory is right where a foreigner can inherit a property but must ask the permission to keep it (and in reality they never give it) but you can sell the property and keep all proceeds of the sale.

 

So by many ways, you can own a villa:

 

1. the villa and not the land.

2. The villa with superficies on the land but not the land.

3. by rights of Sap Ing Sith since 2019 but limited to 30 years.

4.,by inheritance but  they will refuse you to keep it so you must sell in a delay of 6 months to 1 yeae

5 and when he talks about companies, he forgets the most important part, having a majority of votes by creating what is called preferred shares. And there are 2 ways to make it. I prefer when the foreigners have normal shares, like 1 share = 1 vote and Thais have preferred shares, but 10 shares for 1 vote.

 

And with contracts, you do, really, own majority of shares into the company, can transfer your shares to your heirs, and sign other agreements to protect your even more.. Yes, I worked with Thai lawyers form 17 years now, first Ike in 2006 and I believe I know what I am talking about.

 

[ThaiLawOnline]

On 6/16/2023 at 5:25 PM, firemans35 said:

More bd news for you if you are setting up a company to buy land. The last paragraph says

“There are about 100 companies which have been registered by foreigners with this company. Of those, 44 companies are involved with land which have cost about 100 million baht of damages. Most of their customers are Russians. 

 

 

This, I agree. Better not set up a company for properties but some decide to do it. Do you know prostitution is also illegal in Thailand? You can have Thai partners into your company and setup a Thai company without nominees and projections with majority of votes. Phuket, Samui, Pattaya are always more tricky places, more corruption.

[scorecard]

On 6/10/2023 at 5:00 PM, Delight said:

 If I were you-I would use an accountant. Your transaction is about commercial law -not criminal law.

Accountants specialize in the former. they are also much cheaper.

"... much cheaper too"

 

The 'cheaper too' is relevant to:

- Costs/fees to set up the company.

- Annual accountng cost and annual auditing fees.

- Annual costs of submitting yearly report to the Thai companies office.

 

Good luck.

[Kevin1908]

Can I jump in here and ask a question. I need to re-establish contact with my solicitor who advised me on selling some land owned through a company with my ex wife. Due to changing computers I have lost here email address. I can find her searching the internet but only her address in Thonglor Bangkok.

Her name is Suwaphat Sarasalin. Somebody here recommended her but it was more than 10 years ago. Does anybody know her and got her phone number and email address. I don't want to turn up at her address unannouced although security might be able to give me her phone number.

She also did my will that needs updating.

[Agusts]

I saw a quote of 35k baht to set up a company to buy a house in Phuket, does that sound about right... ? It's not much...????

[Carsten07]

On 6/2/2023 at 11:09 AM, ezzra said:

I have been using this very nice lady lawyer by the name of Patchara Lennie (018094491)  been in the business for many years and helped many guys with all sorts of legal works including forming companies for all sorts of purposes charging reasonable fees and 100% trustworthy.

Wrong phone, must be 10 digits.

[MrJ]

On 6/24/2023 at 5:30 PM, Agusts said:

I saw a quote of 35k baht to set up a company to buy a house in Phuket, does that sound about right... ? It's not much...????

 I paid 20k back in 2016

[edwardflory]

Be careful. Setting up a company to ""ONLY"' buy a house AND LAND is illegal - you can OWN a house as a foreigner, you can not own the land - there ARE several exceptions.  Contact a lawyer!

[Agusts]

11 hours ago, edwardflory said:

Be careful. Setting up a company to ""ONLY"' buy a house AND LAND is illegal - you can OWN a house as a foreigner, you can not own the land - there ARE several exceptions.  Contact a lawyer!

 

What are the exceptions...? 

 

Can rent a little room/shop and make it a bar/cafe/eatery/massage shop etc. to say have a business...? Or even sublet it to someone else, would that make the company legal to own land..?

 

What if own two or more land plots/houses..., would that make it like real estate company - although to be genuine they want to see some buying and selling I guess ...! 

[PaoloR]

Setting up a company that does nothing - just owns some land, is a potential long-term burden.

I did this 15 years ago and bore the costs of set up plus annual accounting and auditing fees.

Two years ago, after the company had conducted no business other than owning the land and paying the accountants for 13 years; I was informed by the local government that unless the company started to function as a company should, with cash flows and transactions, then the company would be deemed inactive and be forced to close.

 

I didn't bother to contest this - I had enough of accountant's fees!

[CFCol]

On 6/2/2023 at 10:16 AM, Longwood50 said:

Looking to purchase and need a good but modestly priced legal firm to set up a Thai company. 

I am in Pattaya

I am purchasing a vacant lot to build on.  I have been told different things in regards to the capitalizaiton of the company.  Some have said 1 million others say the price of the lot.

I have also heard about due dilligence on the Chanote.  I am wondering what that involves given the Chanote should record any encumberances and it is my understanding if there is a loan against the Chanote the lender keeps it. 

So wouldn't looking at the Chanote, seeing no liens and the fact that the seller has the Chanote be proof that it was free and clear.  


 

Setting up a nominee company to buy land is illegal and the Thai authorities are chasing these companies. If you don't have a Thai wife whose name you can put the land title in, then your only safe option is to lease the land.

[KhunLA]

😎

[LukKrueng]

On 6/2/2023 at 10:16 AM, Longwood50 said:

Looking to purchase and need a good but modestly priced legal firm to set up a Thai company. 

I am in Pattaya

I am purchasing a vacant lot to build on.  I have been told different things in regards to the capitalizaiton of the company.  Some have said 1 million others say the price of the lot.

I have also heard about due dilligence on the Chanote.  I am wondering what that involves given the Chanote should record any encumberances and it is my understanding if there is a loan against the Chanote the lender keeps it. 

So wouldn't looking at the Chanote, seeing no liens and the fact that the seller has the Chanote be proof that it was free and clear.  


 

The best way to be sure is to take a copy of the chanot to the local land office. This is basically the only way to be sure it's a freehold and that ownership can be transferred. Usually when a plot is upgraded from N.S.3  (or from other lesser titles) to chanot the owner cannot sell for a period ranging from 5 to 10 years (called red chanote). It is also noted on the original chanot.

Next thing - be present personally at the land office for the process of the change of ownership. The officer will ask the seller if he received the agreed amount in full and only then they'll add your name (or company name) to the chanot.

[Justanotherone]

On 6/2/2023 at 1:41 PM, edwardflory said:

IF you are a foreigner, the general rule is you can not OWN land ( lot? ). Maximum time you can own land if your spouce dies and spouce owns land ( tera firma ), and gives to you in a will, is 1 year, if I am not mistaken, Setting up a company, ...JUST... to own / buy / purchase land ( and build a house ), IF you are not Thai, is not a good idea at all..

 

usufruct, wife can die, you keep everything, till you die, time to find new wife and make kids...

[Yellowtail]

How old are you? 30-year lease would be cheaper and easier. 

[Delight]

 This action is the province of an accountant .

Cheaper that a lawyer and safer

[NickyLouie]

On 6/22/2023 at 1:44 PM, ThaiLawOnline said:

Yes, I worked with Thai lawyers form 17 years now, first Ike in 2006 and I believe I know what I am talking about.

 

 

You're not a Thai lawyer so why pontificate ?