Thai Partners Vs Nominees

[HorseDoctor]

Ok Expensive lawyer say I need 4 Thai partners, with their own monies and 2 others any nationality to start a business, an equestrian centre, just giving riding lessons at first then boarding , etc .

Does every one with a small shoppe or bar actually go through this? I don't trust 6 people in the entire world, how can I find partners I can trust ?? I can't.

Seems everyone and their mother has a business here, what am I missing ?

How can Thailand claim it's easy for foreigners to do business here with these kind of rules ?

[Marvo]

Ok Expensive lawyer say I need 4 Thai partners, with their own monies and 2 others any nationality to start a business, an equestrian centre, just giving riding lessons at first then boarding , etc .

Does every one with a small shoppe or bar actually go through this? I don't trust 6 people in the entire world, how can I find partners I can trust ?? I can't.

Seems everyone and their mother has a business here, what am I missing ?

How can Thailand claim it's easy for foreigners to do business here with these kind of rules ?

..."what am I missing ?"...

A decent lawyer.

Since July, a Thai Ltd. Co. only needs 3 partners/shareholders in total - 1 foreigner with two legitimately investing Thais is all you need.

[cclub75]

A decent lawyer.

Since July, a Thai Ltd. Co. only needs 3 partners/shareholders in total - 1 foreigner with two legitimately investing Thais is all you need.

I agree with the first part of your answer : indeed, HouseDoctor's "lawyer" seems totally stupid.

Now, for the rest, we need to explain a little more the situation so HouseDoctor can understand.

-before to consider the number of the shareholders, their nationality and the % of shares for each... we have to look at the company's objectives.

-if you want to create a factory let's say to build cars, or washing machines... you don't need ANY thai partners. An industrial company can be owned totally by foreigners only.

-the problem (if I may say) of compulsory thai shareholders is linked mainly to services.

-Some businesses are protected in Thailand by a law : the Foreign Business Act

-this law prevents (roughly) a foreigner to own the majority of shares, if his business is listed on 3 special lists.

-horse ridding.. teaching... could be (i'm not sure) related to the List 3.List 3 = “The business which Thai nationals are not yet ready to compete with foreigners.”

The list 3 is very broad. That's the problem. To see its content : http://www.dbd.go.th/mainsite/index.php?id=791&L=1

-however it's important to note that list 3 is forbidden “unless permitted by the Director-General with the approval of the Committee.” (Section 8 of FBA)

-but I guess you're not ready to fill a dossier to ask for the approval (very detailed, and really not designed for a small project, and actually very rarely used by investors. This is why the FBA is a huge hypocrisy from the thai authorities : they can always say that it's "possible if you ask for a licence"... and never give it to you)

-to know more : ThaiCrisis has a large dossier about the FBA's issues (plus the problem of nominees etc.)

-eventually, a foreign lawyer with experience of company creation with foreigners could be better for your project, like SunBelt.

Edited November 9, 2008 by cclub75

[lannarebirth]

I'm going to guess the OP is an American, even though my research of her posts spotted a "whilst" and a "labour". If that's so I think she would be better served by starting a Amity Treaty company, whereby she can control the company 100% herself.

http://www.buyusa.gov/thailand/en/treatyofamity.html

[HorseDoctor]

Ok Expensive lawyer say I need 4 Thai partners, with their own monies and 2 others any nationality to start a business, an equestrian centre, just giving riding lessons at first then boarding , etc .

Does every one with a small shoppe or bar actually go through this? I don't trust 6 people in the entire world, how can I find partners I can trust ?? I can't.

Seems everyone and their mother has a business here, what am I missing ?

How can Thailand claim it's easy for foreigners to do business here with these kind of rules ?

..."what am I missing ?"...

A decent lawyer.

Since July, a Thai Ltd. Co. only needs 3 partners/shareholders in total - 1 foreigner with two legitimately investing Thais is all you need.

Thanks for your replies ,

But, I'm still trusting 2 strangers AND I do not know any thais with money, even if so and then I assume they retain majority share ? And this Lmtd. Co. is the kind of company that can buy land as that is an objective ?

As for Amity Treaty,

I looked into that first thing, it takes incorporation within US and must have USD $ 10 million in capital reserves.. I sure wouldn't be living in T Land if I had those kind of resources, more like in the south of France.

[HorseDoctor]

And CClub75, thanks for that link to Thailand Crises.

Browsing through that- I think the thing for me to do is get the hel_l out of here, that was actually the lawyers first advice. - maybe not so stupid ..

[HorseDoctor]

Just wondering , If I apply for special permission for this equestrian centre , do I get to be the only shareholder?

There isn't any other business like it on Phuket and it would add a lot to the island, it might have a chance of receiving permission??

[lannarebirth]

Ok Expensive lawyer say I need 4 Thai partners, with their own monies and 2 others any nationality to start a business, an equestrian centre, just giving riding lessons at first then boarding , etc .

Does every one with a small shoppe or bar actually go through this? I don't trust 6 people in the entire world, how can I find partners I can trust ?? I can't.

Seems everyone and their mother has a business here, what am I missing ?

How can Thailand claim it's easy for foreigners to do business here with these kind of rules ?

..."what am I missing ?"...

A decent lawyer.

Since July, a Thai Ltd. Co. only needs 3 partners/shareholders in total - 1 foreigner with two legitimately investing Thais is all you need.

Thanks for your replies ,

But, I'm still trusting 2 strangers AND I do not know any thais with money, even if so and then I assume they retain majority share ? And this Lmtd. Co. is the kind of company that can buy land as that is an objective ?

As for Amity Treaty,

I looked into that first thing, it takes incorporation within US and must have USD $ 10 million in capital reserves.. I sure wouldn't be living in T Land if I had those kind of resources, more like in the south of France.

Ha! I knew all that annoying Brit speak was an affectation. Anywho, I think you've got your facts wrong re: Amity Treaty requirements. It's what you're looking for. I suggest you PM Greg, the managing director at Sunbelt Asia for the true picture; although I'm not sure if they are taking Amity registrations currently.

http://www.thaivisa.com/forum/Sunbelt-Asia-m2725.html

[cclub75]

A new article about FBA and services businesses written by a thai lawyer.

http://bangkokpost.com/211108_Business/21Nov2008_biz44.php

Roughly the same than what we were saying.

[HorseDoctor]

Mmm, well I can't find the info I saw before with the incorporated in US and 10 m USD requirement . I"ve tried repeatedly to call the US service center to no avail and the e mail on the site is dead,..

BUT it sounds too good to be true .

HOwever I will investigate further, thanks for the tip.

BTW I spent a portion of my life in UK so I spell some things English Style plus I always have British friends so writing habits have rubbbed off.

Yes I saw that B POst article , in fact it's right in front of me ..I was getting ready to admonish the author for not mentioning the requirements , guess I'll hold off for now.

Cheers

[torrenova]

Why don't you approach the hotel / horse place in Pattaya, Horseshoe Point I think. I don't know who owns it but it sounds along similar lines.

As for companies, I think the main issue with Thai investors is not that they are just dummies but that they have paid tax on the money they are supposed to be investing in the business. You can have different voting classes of shares etc. Sprt of makes houses owned through companies suspect as well, whatever they keep saying.

[chiangmaibruce]

A new article about FBA and services businesses written by a thai lawyer.

http://bangkokpost.com/211108_Business/21Nov2008_biz44.php

This article is by someone at the Bangkok law firm Tilleke & Gibbons. Just FYI their web site has quite a large and good range of papers on Thai legal issues including those related to foreign business start-ups

[jdinasia]

I don't trust 6 people in the entire world, how can I find partners I can trust ?? I can't.

How can Thailand claim it's easy for foreigners to do business here with these kind of rules ?

How can you? Start by coming to Thailand ... Then actually consult a lawyer. Then open a business

[HorseDoctor]

I don't trust 6 people in the entire world, how can I find partners I can trust ?? I can't.

How can Thailand claim it's easy for foreigners to do business here with these kind of rules ?

How can you? Start by coming to Thailand ... Then actually consult a lawyer. Then open a business

Wel I am in Thailand and I consulted Sunbelt Asia and they reccommended the nominee route, this was 2 years ago or so so I guess I can overlook their illegal advice as it was given when everyone was breaking the law .

Than I consulted Tilke and Gibbons, the firm of the author of the aforementioned Bangkok POst article. That guy was retireing but he was adamant and right, don't go the nominee route, it is illegal and will be soon be put to a stop . He told me about Amity Treaty needing to be incorp within US.

Than I consulted Sam Fauma who enjoys an excellent rep on Phuket, in order to buy land one cannot have a Lmtd partnership , but must have the herd of partners, 4 of which must be Thai and investing their own monies which come from their own bank accounts.

So... Guess the rich folks flocking to Phuket to purchase all those condos will ljust have to get along with neglected, pitifully tortured undersized ponies available at the 2 beach stables -along with,

" Instructors" that are downright inept and equipment and practies that are utterly dangerous - Putting kid sized feet into adult sized stirrups is a recipe for disastor.

Mai Pen BullSh*t

[HorseDoctor]

Why don't you approach the hotel / horse place in Pattaya, Horseshoe Point I think. I don't know who owns it but it sounds along similar lines.

As for companies, I think the main issue with Thai investors is not that they are just dummies but that they have paid tax on the money they are supposed to be investing in the business. You can have different voting classes of shares etc. Sprt of makes houses owned through companies suspect as well, whatever they keep saying.

THank you for trying to help BUT There are already 3 equestrian centres and a Polo club in the area so it's saturated. I do not want to work for others, either

Phuket has nothing but the horrible beach stables I can show you pic of those tortured animals, no westerner would keep an animal in those places plus as I wrote, the facilities.. well on and on ...

Phuket is ready and able to support such a business - I have people begging me to give their kids lessons but I wil not as I do not have a permit for it.

As written so well on Thai Crises, this country is just shooting itstself in the foot with these xenophobic laws .

Perhaps I should point out I'm female so marrying a Thai in order to facillitate owning a business is out of the question.

Edited November 23, 2008 by HorseDoctor

[jdinasia]

So .... yo are posting from Thailand?