Is Land Ownership Via The Company Route Ok For A Business?

[chiangmaibruce]

A few comments:

1. Earlier poster kcallagmy noted he/she had Thai shareholders for 61% shares, not 51% as everyone else has mentioned. This step will also help you avoid some scrutiny. Any company holding land with a foreigner director holding more than 40% shares will routinely attract a higher level of scrutiny (according to the written policy anyway)

2. I have also seen the weighted shares (and letters of resignation, etc) approach mentioned in various articles/reports on this issue. The authorities are well awake to this method and I wouldn't put too much faith in it (re: protecting you if someone comes gunning for you)

3. Regarding not attracting scrutiny because the company is actively using the land. Yes and no. Not attracting so much routine scrutiny perhaps, but if you are successful then other Thai accommodation owners might be inclined to "drop a dime" as the yanks say, and you may get some scrutiny that way. Worse still, should you have a falling out with one of your Thai directors or staff then out comes the source of the directors start-up capital, the staff salaries going back into the business, etc ... and again you might find yourself in an office handing over a bag of baht to keep your business going.

Like lots of these ideas that get bandied about, you're fine until you're not fine

Given the series of articles we saw in the BKK Post in August, and the current political situation, I would say now is quite a bad time to be contemplaing doing something even a little bit dodgy re: land ownership

[zeazon]

in most cases, and straight way, it is advisable for foreigner to lease land.

because by law, u can legally (free from any complexity each year), lease land for 30 years, and extendable afterward.

during which u have freehold right with land that u can make money from that with little headache, such as to sell the leasing rights.

Buying land is generally not advisable for small businesses.

because even you can use your 51% "Thai-owned" company (through methods, such as, set up a Thailand-based company here and use it to hold shares in the company that will legally become Thai-owned as a result) to buy the land, you will have complexity with task to report every year and to meet some requirements. it is considered not worthwhile especially for small businesses.

[thaiwanderer]

in most cases, and straight way, it is advisable for foreigner to lease land.

Whilst I am not necessarily disagreeing with the general notion that it may be advisable for some foreigners to lease land (or indeed some thai companies), you seem to be overlooking the fact that the OP is looking to run a business in any event (not just to own land) and further as such will not then be an alien entity (or at least the hope is not appear to be an alien).

because by law, u can legally (free from any complexity each year),

- As the OP is looking to run a business this is not really an advantage.

lease land for 30 years,

-As commercial, 50 years is possible.

and extendable afterward.

- Are you SURE?

[thaiwanderer]

during which u have freehold right with land

- Leasehold is not Freehold.

that u can make money from that with little headache,

Is that with the blue or red pill?

such as to sell the leasing rights.

- A diminishing asset and Lessor's co-operation required for full registration which will likely required for any satisfaction of new lessee, let alone full satisfaction.

Buying land is generally not advisable for small businesses. because even you can use your 51% "Thai-owned" company (through methods, such as, set up a Thailand-based company here and use it to hold shares in the company that will legally become Thai-owned as a result) to buy the land, you will have complexity with task to report every year and to meet some requirements. it is considered not worthwhile especially for small businesses.

- And if lease only a business need not attend to any regular official paperwork in your opinion?