Buying In Company Name

[pauljones]

Anybody have experience purchasing a house in a company name recently?

Is it legit or are the lawyers skirting the law still?

[InterestedObserver]

If the house is the only asset owned then it's highly doubtful that the company is conducting legitimate business. The shareholder structure, capitalization and annual reports would also have to be examined. Does the company earn a profit?

Edited April 9, 2011 by InterestedObserver

[johnnyk]

I have heard Land Offices are looking more closely at new applications these days.

[Langsuan Man]

I have heard Land Offices are looking more closely at new applications these days.

What land offices please? The OP asked for recent experience, not " I have heard "

There is probably no more contentious subject here on TV regarding "company ownership" versus 30 year leases, usufruct's, buying in a Thai name etc.

I would suggest that the OP do a thorough search and then make up his own mind

[Delight]

I have heard Land Offices are looking more closely at new applications these days.

What land offices please? The OP asked for recent experience, not " I have heard "

There is probably no more contentious subject here on TV regarding "company ownership" versus 30 year leases, usufruct's, buying in a Thai name etc.

I would suggest that the OP do a thorough search and then make up his own mind

In general terms I must agree.

However I think that the O/P has a reasonable question - It is fair to assume -given the nature of this Forum -that some contributor -somewhere has recently purchased a house via a Thai Company

The only alternative that I can suggest is that he visits respected property agents and asks them for broad, but not specific, details of recent house purchase transactions employing that particular process

Edited April 10, 2011 by Delight

[johnnyk]

In Hua Hin and Samui they are now looking more closely as a result of dodgy activity like illegal land purchases by companies that have been dormant for years. Some L.O. officials have been re-assigned elsewhere. That said, I know of no instance where a company has been stripped of its land.

[katabeachbum]

Most land office presently accept co ltd to purchase property if Managing Director and all shareholders are Thai nationals.

If a foreigner is MD, they want to see Work Permit. If there is a foreign shareholder or MD, they want to examine all shareholders.

If the company after purchase conduct other businesses and has a turnover (and possible tax payments) co ltd can own land legit, even with foreign shareholders.

Co ltd is rather expensive and often not 100% legit. I prefere to register 30 year loan on purchased property with 2,5% interest a month. Pretty good security for my investment, reg cost 1,1% of loan amount. 3 years non registered leases in addition secures my right to occupie property

[Delight]

Most land office presently accept co ltd to purchase property if Managing Director and all shareholders are Thai nationals.

If a foreigner is MD, they want to see Work Permit. If there is a foreign shareholder or MD, they want to examine all shareholders.

If the company after purchase conduct other businesses and has a turnover (and possible tax payments) co ltd can own land legit, even with foreign shareholders.

Co ltd is rather expensive and often not 100% legit. I prefere to register 30 year loan on purchased property with 2,5% interest a month. Pretty good security for my investment, reg cost 1,1% of loan amount. 3 years non registered leases in addition secures my right to occupie property

If the a foregoing response is indeed correct -then things certainly have changed from say 5 years ago.

Has a change in legislation brought about this change?

I would be curious to see this new legislation -assuming that it exists-that said it would available only in Thai language.

[chickencurry]

May be easier to buy Leasehold? If you want to sell, just have to assign the Lease to the new buyers.

[Langsuan Man]

It is sort of like the kids game of " whack-a-mole"

The lawyers who set up these companies know what the land office will accept in their respective jurisdictions

If they only accept a company with a Thai Managing Director and Thai shareholders, they will purchase the land with that structure and then change the company structure after the property is registered with the land office and chanote issued

In Satahip for instance, (one year old information) the land office wants to see the bank book of the Thai Managing Director to insure he has at least 1,000,000 Baht (the price that most land is registered for). Therefore you must get a lawyer that is willing to 1) be the "temporary " director and 2) willing to show his bank book

In Pattaya (one year old information) the 1,000,000 Baht showing is not required and I don't know if the director must be Thai

This is not a change in Thai law but a change in what individual land offices require, similar in how different Immigration offices require different documentation for the same thing. In addition, the law on how these companies are set up is not established by the land office but by whatever agency overseas how companies are set up in Thailand (can't remember the agency name off the top of my head)

As far as to buying via the lease hold option, you will have to find a developer or Thai individual that will go that route for you. Not everyone will but once again that is why this is such a contentious subject here at Thai Visa

In addition (again) the terms of the lease decrease every year, so in 15 years you lease hold will be 50% less in value, in thirty it is worthless

Edited April 10, 2011 by Langsuan Man

[InterestedObserver]

Most land office presently accept co ltd to purchase property if Managing Director and all shareholders are Thai nationals.

If a foreigner is MD, they want to see Work Permit. If there is a foreign shareholder or MD, they want to examine all shareholders.

If the company after purchase conduct other businesses and has a turnover (and possible tax payments) co ltd can own land legit, even with foreign shareholders.

Co ltd is rather expensive and often not 100% legit. I prefere to register 30 year loan on purchased property with 2,5% interest a month. Pretty good security for my investment, reg cost 1,1% of loan amount. 3 years non registered leases in addition secures my right to occupie property

If the a foregoing response is indeed correct -then things certainly have changed from say 5 years ago.

Has a change in legislation brought about this change?

I would be curious to see this new legislation -assuming that it exists-that said it would available only in Thai language.

No new legislation, just renewed emphasis on "nominee" ownership which is illegal. Thaksin stirred the pot when he sold his communications business(s) to the Singapore government. The Ministry of Interior has issued, within the last several years, detailed instructions to all Land Department offices concerning land transactions.

Edited April 10, 2011 by InterestedObserver

[Delight]

[

If the a foregoing response is indeed correct -then things certainly have changed from say 5 years ago.

Has a change in legislation brought about this change?

I would be curious to see this new legislation -assuming that it exists-that said it would available only in Thai language.

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No new legislation, just renewed emphasis on "nominee" ownership which is illegal. Thaksin stirred the pot when he sold his communications business(s) to the Singapore government.

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Interesting reply-Thanks

In your view does this renewed emphasis on "nominee" ownership which is illegal equally apply to the purchase of a condo using the same process ie "nominee" ownership which is illegal ?

Given that, it would be impossible commercially-in my view- to sell condos in such areas as Phuket and Pattaya to actual fund bearing Kon Thais( to satisfy the 51% Rule)

Do you think that new condos(in those aforementioned area) as a concept are dead?

Edited April 10, 2011 by Delight

[InterestedObserver]

Company ownership using a nominee is an entirely different subject than the foreigner condominium ownership rules. If a Kon Thai registers a condominium by using a Thai ID card and house book then it falls under the 51% quota. If a Kon Thai uses a UK passport and TT3 (FET) form then it falls under the 49% quota. That's how I see things, or am I missing something. Perhaps you are talking about a foreigner using a nominee Thai company to purchase his condominium for him.

Edited April 10, 2011 by InterestedObserver

[katabeachbum]

the 49% non foreign owned condos can be controlled by foreigners through co ltd, lease, usufruct or registered loan, just like all other Chanote/NS3G properties in Thailand.

[Delight]

Company ownership using a nominee is an entirely different subject than the foreigner condominium ownership rules. If a Kon Thai registers a condominium by using a Thai ID card and house book then it falls under the 51% quota. If a Kon Thai uses a UK passport and TT3 (FET) form then it falls under the 49% quota. That's how I see things, or am I missing something.

Probably not -but maybe I am.

I will attempt to be more specific

In the condo where I live the 51% Thai ownership is about 10% actual Kon Thai ownership and the remaining 90%( of that 51%) are owned by Thai Companies.

All these companies are controlled by farang(controlled because the farang has 100% voting rights)

Would this current arrangement with the ' renewed emphasis on "nominee" ownership which is illegal ' simply be prohibited for new Juristic Condominium Person i.e. new condos

[InterestedObserver]

Many Thai companies are legally registered and purchase property, only to have their share structure changed after the fact. The Land Department is none the wiser.

[Delight]

Many Thai companies are legally registered and purchase property, only to have their share structure changed after the fact. The Land Department is none the wiser.

Thanks -All is now clear

[thaiwanderer]

This thread seems to have focused on the isue of registering ownership / what's the extent of the land office's current requirements.

Assuming the OP is not actually distinguishing house from land and is not merely an officer of or minor shreholder in a genuine trading company without nominee issues, the answer to his question is its not and never has been a 'legitimate' route.

As mentioned above there are plenty of threads here the contents of which still apply.

Getting it regsitered is the first step which can certainly still be done (the exact procedure depends on the relevant land office) but throughout your ownership (or more properly control of varying degrees) you'll then be continually engaging in a criminal activity and liable to a fine and or imprisonment..

The likelihood of this ever actually being an issue in reality has also been discussed at length many times in other threads here.

[katabeachbum]

Many Thai companies are legally registered and purchase property, only to have their share structure changed after the fact. The Land Department is none the wiser.

Thanks -All is now clear

and managing Director

but some land offices do not allow a co ltd to sell/transfer if MD is foreign and no WP. Some actually report all such foreigners to labour Department for working illegally