Buying Land In Thailand

[kaspasecret]

I am going to buy land in thailand, to put it in my name, i have decided to create a company.

Maybe in short future, i will start a business there.

what I can expect yearly to keep the society open without any movement ?

thanks

[Sunbelt Asia]

what I can expect yearly to keep the society open without any movement

Its illegal to have a company owning land that is not trading. If its not doing any activity, it can be closed by the Thai government after three years.

www.sunbeltasia.com

[Sumitr Man]

If its not doing any activity, it can be closed by the Thai government after three years.

As a general rule, I'm not sure this is technically correct. The fact that a company is inactive is not reason enough to close the company. However, as I understand it, if a private limited company does not file the appropriate documents with the Ministry of Commerce for three consecutive years, whether that company be active or inactive, then this would be reason enough to close the company. Which is to say, so long as you file the documents at the MoC, even though you are not an active company, this rule cannot be invoked.

However, this case is slightly different in that an inactive company is being used as a front in order for a foreigner to purchase land. This is fraught with so many problems that any adviser worth anything (that the poster should be seeing) should have warned him off this immediately.

Then again, TiT and one does arrive every minute

[Yohan]

what I can expect yearly to keep the society open without any movement

Its illegal to have a company owning land that is not trading. If its not doing any activity, it can be closed by the Thai government after three years.

www.sunbeltasia.com

I have some questions, too.

1-

If the company is shut down after 3 years because of no activity, what will happen with the land, the company is owning?

Will the company be forced to sell it to another new company, with the same shareholders? Or different shareholders? Or shareholders, who are not foreigners?

2-

What means no activity?

If the land is bought by the company and then available for rent, is this called trading? or is it not trading? What will happen, if you cannot find anybody who is willing to pay rent for it?

3-

If somebody (foreigner or Thai) pays rent, using this land, and the company pays taxes, this should be considered as an active company. Or not?

Should be possible to run such a company as a foreigner, with 51 percent shares to the Thai shareholders.... Or not?

4-

Every Limited Co. in Thailand must report every year...there is no exception out of this rule, regardless if the company is active or not. There is no question about it - yes, correct, if the annual report is missing for years, such a company might be shut down.

5-

If the yearly reports are made correctly, and taxes are paid on time, which authority of the Thai government would take legal steps to close down this company and for what reason?

The Commercial Department of the related province?

The tax office?

Any known case, where such companies were indeed shut down? What happened then with the land? Or was only the foreign shareholder removed?

[astral]

Nowadays the company needs to trade.

Firstly you rent the house on the land and pay rent to the company,

involves a small tax, but it is trading. If you can show some other small business activity that also helps.

[falong]

Nowadays the company needs to trade.

Firstly you rent the house on the land and pay rent to the company,

involves a small tax, but it is trading. If you can show some other small business activity that also helps.

I assume maintaining an e commerce website selling thai products qualifies as a business activity?

What level of sales would need to maintained?

Register company, company buys land, company builds house on land with office , company owns domain name and e-commerce site.