Thailand Cracks Down on Foreign Businesses to Protect Local SMEs

[webfact]

 

The Department of Business Development (DBD) in Thailand is ramping up efforts to strictly enforce laws surrounding foreign businesses to ensure fair competition for Thai entrepreneurs.

 

Director-General Auramon Supthaweethum has confirmed the department's resolve to work closely with law enforcement to ensure compliance, particularly targeting foreign enterprises that might exploit nominee shareholders to bypass the 1999 Foreign Business Act.

 

Offenders of these regulations will face stringent penalties under the new, robust enforcement strategy.

 

Auramon stressed the department's proactive stance in supporting Thai small and medium-sized enterprises (SMEs), particularly as the fast-expanding online commerce sector introduces low-cost products that challenge local businesses.

 

To counter these threats and bolster Thai SMEs, the DBD has crafted nine strategic measures aimed at enhancing their competitiveness, reported NNT.

 

Among these measures are initiatives to broaden online market channels, boost e-commerce capabilities, and promote unique Thai community products. Additionally, efforts are being made to secure affordable sales spaces for businesses and equip SMEs with vital business knowledge and digital tools necessary for modern enterprise.

 

Integration of business networks through initiatives like the MOC Biz Club, and support for the growth of local franchises, are also key focus areas. The DBD is taking steps to modernize traditional retail stores, enabling their participation in the broader supply chain, and ensuring they are not left behind amid rapid market changes.

 

These concerted actions underscore the DBD's commitment to providing Thai SMEs with the necessary edge to thrive in an increasingly competitive global market.

 

By enforcing foreign business laws more rigorously and fortifying local businesses with strategic support, the department aims to foster a resilient and fair business environment, ensuring sustainable growth for Thai entrepreneurs.

 

TOP Picture courtesy: National News Bureau of Thailand

 

-- 2024-08-16

 

- Cigna offers a variety of health insurance plans designed to meet the minimum requirement for medical treatment coverage, with benefits reaching up to THB 3 million. These plans are tailored to provide comprehensive healthcare solutions for expatriates, ensuring peace of mind and access to quality medical services. To explore the full range of Cigna's expat health insurance options and find a plan that suits your needs, click here for more information.

 

Get our Daily Newsletter - Click HERE to subscribe

[Gottfrid]

6 hours ago, webfact said:

The Department of Business Development (DBD) in Thailand is ramping up efforts to strictly enforce laws surrounding foreign businesses to ensure fair competition for Thai entrepreneurs.

Seems like they will take away fair competition. Is that, them admitting they are not up to par?

[hotchilli]

8 hours ago, webfact said:

particularly targeting foreign enterprises that might exploit nominee shareholders to bypass the 1999 Foreign Business Act.

Nominee... that's a very grey area when Thais must by law hold a minimum 51% stake in the business.

[soi3eddie]

9 hours ago, webfact said:

Thailand is ramping up efforts to strictly enforce laws surrounding foreign businesses to ensure fair competition for Thai entrepreneurs.

 

Really what they mean is they want to make it unfair on any foreigners investing in business in Thailand (who are likely to employ Thais and thus boost the economy). So, the country will languish with underinvestment by enforcing rules that stop new businesses opening if run by foreigners.

 

[Liverpool Lou]

2 hours ago, Gottfrid said:

9 hours ago, webfact said:

The Department of Business Development (DBD) in Thailand is ramping up efforts to strictly enforce laws surrounding foreign businesses to ensure fair competition for Thai entrepreneurs.

Seems like they will take away fair competition. Is that, them admitting they are not up to par?

No, it does not, it is just your not reading the article properly, they are cracking down on illegal foreign (nominee) companies, that's all, as the OP clearly stated.

[Liverpool Lou]

38 minutes ago, hotchilli said:

9 hours ago, webfact said:

particularly targeting foreign enterprises that might exploit nominee shareholders to bypass the 1999 Foreign Business Act.

Nominee... that's a very grey area when Thais must by law hold a minimum 51% stake in the business.

Bypassing the Foreign Business Act by having illegal nominees is not a grey area.  Thais must, by law, hold a minimum legal 51% stake in the business.

[Liverpool Lou]

19 minutes ago, soi3eddie said:

Really what they mean is they want to make it unfair on any foreigners investing in business in Thailand

No, what they mean is what was reported, they are cracking down on illegal nominee companies.  What is unfair is to allow foreign-owned companies to operate illegally.

Edited August 16 by Liverpool Lou

[Gottfrid]

5 minutes ago, Liverpool Lou said:

No, it does not, it is just your not reading the article properly, they are cracking down on illegal foreign (nominee) companies, that's all, as the OP clearly stated.

That´s is a thing only living in utopia, as there is no possibility if they just followed already written laws. A Thai company must be owned 51% of people with Thai nationality.

Here are the facts: A Thai nominee shareholder company refers to a situation where a foreigner sets up a company in Thailand but uses Thai individuals as “nominees” to hold shares on their behalf.

So the foreigner ask the Thai person if he/she would hold shares on their behalf against payment, right? Nothing illegal with a question. After that, the Thai person breaks the law, by acting as a nominee. In other words, the foreigners are not a threat, but it´s the Thai´s that are fighting their own.

[Liverpool Lou]

8 minutes ago, Gottfrid said:

That´s is a thing only living in utopia, as there is no possibility if they just followed already written laws. A Thai company must be owned 51% of people with Thai nationality.

Here are the facts: A Thai nominee shareholder company refers to a situation where a foreigner sets up a company in Thailand but uses Thai individuals as “nominees” to hold shares on their behalf.

So the foreigner ask the Thai person if he/she would hold shares on their behalf against payment, right? Nothing illegal with a question. After that, the Thai person breaks the law, by acting as a nominee. In other words, the foreigners are not a threat, but it´s the Thai´s that are fighting their own.

Seems that you do not know the difference between a legal Thai company with legitimate nominee shareholders and an illegal nominee company set up with non-legitimate nominees for the sole purpose of circumventing the Foreign Business Act.

[Gottfrid]

4 hours ago, Liverpool Lou said:

Seems that you do not know the difference between a legal Thai company with legitimate nominee shareholders and an illegal nominee company set up with non-legitimate nominees for the sole purpose of circumventing the Foreign Business Act.

Yes, I do, but that was not the point with my post.

[BangkokReady]

Hub of crackdowns on foreigners...  🙄

[ukrules]

In other news foreign giant Tesla isn't coming to Thailand any more.

[xtrnuno41]

Thats why you invite Chines to come to Thailand and buy land, orchards.

Of course only Chinese work in the orchards. 

Especially the durian is a Chinese pick. 

 

Thats why street venters in BK has to pay more or otherwise ..pai.

They dont want street venters, but dumbass  shops everywhere with loud music.

But most of all they want more money, digital data on shops on sales for..tax.