Is A Thai Limited Company Actually Doing Business, But With A Foreign Director Allowed To Buy Land

[traderDM]

Hi,

I have received mixed advice from different people working at the same law firm I have used to set up my Thai company. I set it up with 39% common shares for me, and my wife 60 something% and about 1000 Baht of registered capital in her mom's shares.

Since the money for the company is "community" money under Thai law since we are married and the business actually is doing business I was originally told we could buy land no problem. I have a consulting contract with a company in Hong Kong and get a monthly paycheck through the company and the Thai government gets taxes. We also stated as one of the objectives of the company during the registration was to buy land to rent out.

I am now told that because I am director, the land office will not transfer the chanote to the company even though it is 61% Thai and actually doing business (not just a shell). Has anyone had experience with this recently?

[rishi]

I'm by no means an expert on how the related laws can be interpreted, but frankly - the setup you're describing sounds pretty much as an example of what the the more newish amendments to those laws were supposedly meant to prevent.

[Pilchard]

Any farang name on company papers seems to ring alarm bells at some land offices these days. You have to prove your Thai partners money didn't come from you which would make them nominees and illegal.

As trust doesn't seem to be an issue in your case you could take yourself off the company , buy the house , put yourself back on.

When in Rome ect..

Done deal ;-)

[kcallagmy]

Just got back from land office in sattahip. Have thai company with farang director and 39/61 common/preferred share structure. Multi voting common shares etc. Purchased property in company name with debt/equity of 4/1. Have Thai shareholders (2) both of which I have known for 5 years and have good jobs. No problems arrive 8:30 am and finished by 11:30 with everything done and in new company name. I have faith in system. If you follow law and are legitimate for business, it can work. No need to pay anybody pocket money and used my friend from Bangkok as lawyer.