If a falang has a Thai company with alleged Thai nominees and that company owns land with a house on it what are the current options to mitigate against the proposed clampdown on such companies prior to any action by the authorities.

If that company was set up 20 years ago and has submitted annual accounts will that mitigate any enforcement actions?

Can the Thai company issue a 30 year lease to the falang company owner?

If the company is liquidated or closed down who then owns the land?

If the company was to be transferred to a Thai friend what safeguards can be put in place to prevent the land being sold under you and without your knowledge?

I am genuinely trying to find a pro active solution to this problem. I set up the company in good faith using “professional and legal companies” and took their advice at that time in good faith.

I don’t need lectures from anyone telling me that I have done anything wrong. I previously took legal advice when purchasing my house and land and in retrospect that advice was wrong.

I am asking for guidance before I make an approach to a new legal company. I would rather go there with some new background knowledge rather than accept any old nonsense that they say is the new way to do things.

Probably best to discuss with a lawyer, but those guys got you in the mess in the first place, so tread carefully

If it were me, I would do nothing. In case I was approached relevant to this issue, I would offer to bribe whoever contacted me ('and the person would most probably be more than willing – expecting, even – to take that bribe). This is Thailand, that's why you were able to do this these past 20 years and it isn't going to change, despite the once-in-a-while announcements and "crackdowns").

Just my opinion (17 years in the country).

I'm no expert, but as rasttlesnake above says...do nothing for now...........You're 20 years into the property, the company was registered 20 years ago, so your company is far less likey than almost most I would say, to be investigated unless you are on some fancy bespoke development on a steep hillside on Koh samui for example. I would guess that alot of Thai nominee issues are found by investigators searching for title deed misnomas first for whatever reason; and then cross referenced by ownerships... The latest companies if at all, which will first be researched into are ones the powers that be have paid for information on/Thai snitches,ones on dodgy hilllsides or ones of immense value. So, unless you feel that yours fits into that category, I'd relax a little.....The biggest will always attract the most because of financial gain by whoever......................the old adage 'don't open a tin of worms' .....comes to mind. It'll all work out and maybe when everything calms down, you have time to consider a better approach or stay with existing, I feel time is on your side...............Buona fortuna.......

Do you know who the Thai nominees are that "invested" in your company? At a minimum, I would make sure you know who they are. Do you still interact with the lawyers that help you set up this arrangement? If so, what are they saying?

I think it would be wise to discuss options with a different Thai law firm that could give you suggestions on how to proceed even if that advice is to do nothing.

They have to go through the motions of these crackdowns every so often, probably partly to demonstrate that the government is run by the party of law and order, or whatever, and partly to try and encourage people to invest in the massive number of condos they keep throwing up around the place rather than buying a house. Fifteen-odd years ago, not long before I bought my house, the guy in charge of the Land Office in Phuket used to go nuclear every six months or so. At one stage he was trying to convince people that 30% of all the land is Thailand was owned by foreigners, lol. The fact is that the local company ownership route is pretty standard in many countries where paranoid governments refuse to allow foreigners to own land, it's the simplest way to own a house freehold in places from the Philippines to Dubai. Given Thailand's dire economic situation, do you really think that Anutin, who may be an overt racist and xenophobe but he's not financially stupid, is going to deliberately drive away all that investment to other countries? It's not impossible, I know, but my guess is that this will die down sooner or later, possibly with a few sacrificial lambs along the way. After all, your local Land Office knows exactly what's going on, so does the DBD, so does your local council, so do all the locals and tradespeople. Is it likely that the only people in the entire country who've been unaware that foreigners have been buying land for residential purposes via companies are currently in the central government? lol

I am in the same boat as you, when we bought the house 20 years ago, our lawyer put their names as shareholders, 4 weeks ago it had to be changed.

part of an email below from another very good lawyer who did our wills.

At this stage, I would like to advise you that it is not appropriate for your lawyer or accounting firm to hold shares in your company.

This recommendation is based on recent reports concerning the use of nominee shareholders, which may expose companies to significant legal and regulatory risks. There have been indications in the news that inspections or enforcement actions could potentially take place after April; however, such information remains unconfirmed and has not yet been formally implemented.

Nevertheless, as a matter of prudence and risk management, it is advisable to avoid any arrangement that could be construed as a nominee structure. In particular, having a lawyer hold shares on your behalf may present a higher level of risk compared to an individual shareholder who is not acting in a professional or representative capacity.

Accordingly, I would not recommend that your legal counsel hold shares in your company under these circumstances.

Should there be any official updates or changes in the regulatory position, I will keep you duly informed.

best regards

7 hours ago, sometime said:

I am in the same boat as you, when we bought the house 20 years ago, our lawyer put their names as shareholders, 4 weeks ago it had to be changed.

part of an email below from another very good lawyer who did our wills.

At this stage, I would like to advise you that it is not appropriate for your lawyer or accounting firm to hold shares in your company.

This recommendation is based on recent reports concerning the use of nominee shareholders, which may expose companies to significant legal and regulatory risks. There have been indications in the news that inspections or enforcement actions could potentially take place after April; however, such information remains unconfirmed and has not yet been formally implemented.

Nevertheless, as a matter of prudence and risk management, it is advisable to avoid any arrangement that could be construed as a nominee structure. In particular, having a lawyer hold shares on your behalf may present a higher level of risk compared to an individual shareholder who is not acting in a professional or representative capacity.

Accordingly, I would not recommend that your legal counsel hold shares in your company under these circumstances.

Should there be any official updates or changes in the regulatory position, I will keep you duly informed.

best regards

So the shares get transferred to family or girlfriend? or otherwise you're stuffed.

My lawyer friend said there's an issue if they couldn't track down the thai shareholders

To do anything legal AND remain in the house, you'd need a trusted Thai.

After transfer and or dissolvement of company, or restructure as RE management company, to ensure future security, a Usufruct and POA, from new land owner, would protect you best.

Edited May 20May 20 by KhunLA

just a question

in 1 comany i only held 5% ( foreigner) just proforma to have 3 shareholders .-rest wife and brother , i not have any financial intrest in this company (hold 1condo).this condo we live inside

in 2 company i still director and want to change to wife shares and director, bcs even i have no financial intrest anymore (hold 1 condo)

if the shares change to only thai is it better option or leave it as it is? bcs than it cant call nominee ,

can a limited only have 2 shareholders?

i would even delete the companys ,discuss this already 2 year, the deleting is no problem (aprox 150k tax), but the company cant sell out the condo to shareholder/director, as of information from tax accountant

Edited 1 hour ago1 hr by lapamita