Start a Thai company and get the 51% back later

[Mindful Spender]

That's the classic trick of the nominated shareholder: you own 49% and 2 Thais "hold" the other 51% and then "give it back" under the table with signed transfer documents.

 

It used to be common practice, but: It's illegal under Thai law

 

The Land Office and DBD (Department of Business Development) are cracking down hard

If you get caught, your land can be confiscated or the sale can be reversed

[Peterw42]

They cant give it back, A company owns the property and the company documents will always show that Thais own 51%.of the company, that cannot be transferred to a foreigner under any circumstances.

It has never been a classic trick or common practice, it has never happened.

[Ralf001]

3 hours ago, Mindful Spender said:

That's the classic trick of the nominated shareholder: you own 49% and 2 Thais "hold" the other 51% and then "give it back" under the table with signed transfer documents.

 

It used to be common practice, 

 

 

Yeah..... Nah.

 

[sikishrory]

Common in Phuket. I personally don't understand how people can invest their entire life savings into dodgy / illegal company structures. Particularly when it is in the news every week.

[jippytum]

17 hours ago, Peterw42 said:

They cant give it back, A company owns the property and the company documents will always show that Thais own 51%.of the company, that cannot be transferred to a foreigner under any circumstances.

It has never been a classic trick or common practice, it has never happened.

Not true.  The power of attorney and the right to transfer documents are common placr when forming a Thai company to purchase a foreign owned condo when the foreign quota is full. 

[KannikaP]

18 hours ago, Peterw42 said:

it has never happened.

Well I know ONE instance where it DID happen.

[JBChiangRai]

Those signed transfer documents you refer to are undated. 
 

Thai ID cards are valid 7 years, so on average those undated forms you mention become useless in 3.5 years unless you track your nominee shareholders and get new copies of signed ID cards.

 

There are some pitfalls you need to avoid.  Don’t leave the house to someone in your will (you don’t own it), instead leave your shares in the company.

 

It’s expensive for anyone to take the property out of the company, there’s a significant tax liability.

[Peterw42]

1 hour ago, jippytum said:

Not true.  The power of attorney and the right to transfer documents are common placr when forming a Thai company to purchase a foreign owned condo when the foreign quota is full. 

You are wrong, there are no POA agreements or documents that can be signed that allow the 51% of a Thai company to be owned by a foreigner. The DBD simply will not put the foreigners name on the ownership of the company.

You cant have a "right to transfer" something that's not allowed to be transferred.

What would happen when the company gets sold.

[Peterw42]

1 hour ago, KannikaP said:

Well I know ONE instance where it DID happen.

So you know of an instance where a foreigner now owns 100% of a Thai company ?

The 51% Thai owners just signed a document and the DBD just allowed the foreigner to own 100% of the company, no questions asked.

[KannikaP]

26 minutes ago, Peterw42 said:

So you know of an instance where a foreigner now owns 100% of a Thai company ?

The 51% Thai owners just signed a document and the DBD just allowed the foreigner to own 100% of the company, no questions asked.

Sorry, wires crossed. I know someone who set up a 49% company. 

[Colki]

I think a common practice is to obtain signed, undated letters of resignation from thai directors to enable further strategies if issues arise from thai shareholders.

[JBChiangRai]

49 minutes ago, Colki said:

I think a common practice is to obtain signed, undated letters of resignation from thai directors to enable further strategies if issues arise from thai shareholders.

And like I said, these documents become useless in an average of 3.5 years.

[TexasCowboy]

How long will it be before the government starts cracking down on "company" name condos and houses.  So many people promoted these as safe ways for foreign ownership over the years.  I always thought it was just a matter of time or a change in government that would confiscate all these real estate schemes.  What do you think?

[Ralf001]

12 minutes ago, TexasCowboy said:

How long will it be before the government starts cracking down on "company" name condos and houses.  So many people promoted these as safe ways for foreign ownership over the years.  I always thought it was just a matter of time or a change in government that would confiscate all these real estate schemes.  What do you think?

 

would be a great money spinner for sure.