mrmazinkle Posted March 7, 2012 Share Posted March 7, 2012 (edited) I never heard this 1 before so maybe some1 can put me right...I was told open company keep 36% of shares for myself..then give 2 Thais the other64%...32% each..Alo have them sign a loan saying I am lending them the money to buy the shares in my company..If they default on the loan when and if i call it in they must give back the shares..Anyone heard of this..Is it a possibility.I should say this is 2 rai of land to build a house..Thank for replies.....thomas Edited March 7, 2012 by mrmazinkle Link to comment Share on other sites More sharing options...
Khun Jean Posted March 7, 2012 Share Posted March 7, 2012 (edited) I am lending them the money to buy the shares in my company You mean THEIR company! What stops them from using their 64% majority to vote for selling the house and land and divide the proceedings and then not pay you back. Or would they have no voting right, as normally done with nominees. Illegal. Edited March 7, 2012 by Khun Jean 1 Link to comment Share on other sites More sharing options...
Swiss1960 Posted March 7, 2012 Share Posted March 7, 2012 As you want to use the company to buy land to build a house (most certainly for your private use), the whole company is a set-up for illegal business (foreigner buying land) and thus the company purpose is illegal... good luck going to court once your "shareholders" cheated you off all your funds... Link to comment Share on other sites More sharing options...
PattayaPhom Posted March 8, 2012 Share Posted March 8, 2012 As you want to use the company to buy land to build a house (most certainly for your private use), the whole company is a set-up for illegal business (foreigner buying land) and thus the company purpose is illegal... good luck going to court once your "shareholders" cheated you off all your funds... Yet another load of barfly rubbish. Companies normally set up 39 61% with foreigner holding preference shares which carry 5 votes to 1. On day of purchase contracts are signed. Why is company illegal? The company pays tax each year and Thai companies can LEGALLY buy land.... Link to comment Share on other sites More sharing options...
Swiss1960 Posted March 8, 2012 Share Posted March 8, 2012 As you want to use the company to buy land to build a house (most certainly for your private use), the whole company is a set-up for illegal business (foreigner buying land) and thus the company purpose is illegal... good luck going to court once your "shareholders" cheated you off all your funds... Yet another load of barfly rubbish. Companies normally set up 39 61% with foreigner holding preference shares which carry 5 votes to 1. On day of purchase contracts are signed. Why is company illegal? The company pays tax each year and Thai companies can LEGALLY buy land.... I did not say the company is illegal. I said that if the sole purpose of the company set-up is to enable a foreigner buying land for private us, then the company purpose is illegal because the company is built to circumvent Thai property laws. Therefore I assume that Thai courts will - as would every European court - deem the whole company construct to be illegal. And the questions to find out during tax process are fairly easy: What business would the company do? What turnover do they have in that business? how many employees do they have? And you find a company owing few rai of land without employees and without business and not paying any taxes except for the land it owns.... Legal??? I doubt very much... Link to comment Share on other sites More sharing options...
Mario2008 Posted March 8, 2012 Share Posted March 8, 2012 The construction is illegal, as the company is used as a nominee to own land. The land can be confiscated. Link to comment Share on other sites More sharing options...
Langsuan Man Posted March 8, 2012 Share Posted March 8, 2012 The construction is illegal, as the company is used as a nominee to own land. The land can be confiscated. Please, other than the incident in Phuket, where a foreign motocycle gang purchased property with "hot" money after setting up a company, please provide the users of this board with one citation where land has been confiscated I get so tired of hearing this old warning, without anyone backing it up with facts that it has ever happened Anyone remember Ample Rich, if not read this: http://nationmultime...on_30031053.php Link to comment Share on other sites More sharing options...
PattayaPhom Posted March 8, 2012 Share Posted March 8, 2012 Pesonally knowing hundreds of people that have business and homes through Thai companies that have been set up correctly..nothing is illegal. Mostly I feel its people that are not in a postion to purchase a property through lack of funds that come up with the illegal company argument. There isnt any circumventing law. The company is registered through BOI and the company can legally purchase land. Employing an accountant to ensure taxes are paid...what is illegal??? Link to comment Share on other sites More sharing options...
DLock Posted March 8, 2012 Share Posted March 8, 2012 This is fairly typical. As long as the Thai's have a loan agreement with you to protect themselves from being seen as a simple nominee, they are safe and you are safe. But make sure that as part of the company setup, you get copies of their ID's and get blank share transfer forms signed by them, so if you ever want to sell the house you can do so easily without their involvement. My accountant did tell me recently that Thai's must now sign another form that accompanies their share transfer which states they did receive the correct compensation in relation to the shares. I guess this could be balanced with the repayment of the "loan", but it could open the door to Thai claims of compensation when you need that signature. Has anyone else heard of this? Link to comment Share on other sites More sharing options...
Khun Jean Posted March 8, 2012 Share Posted March 8, 2012 Pesonally knowing hundreds of people that have business and homes through Thai companies that have been set up correctly..nothing is illegal. Mostly I feel its people that are not in a postion to purchase a property through lack of funds that come up with the illegal company argument. There isnt any circumventing law. The company is registered through BOI and the company can legally purchase land. Employing an accountant to ensure taxes are paid...what is illegal??? Nothing illegal about that. Please also tell how much money is involved. Just to put it in the right context. Give an example how you can use this to buy a house and land with total worth of 4 million baht. Business has no other activities than owning the land and house, possible rent it out. I await your detailed reply. Link to comment Share on other sites More sharing options...
PattayaPhom Posted March 8, 2012 Share Posted March 8, 2012 Pesonally knowing hundreds of people that have business and homes through Thai companies that have been set up correctly..nothing is illegal. Mostly I feel its people that are not in a postion to purchase a property through lack of funds that come up with the illegal company argument. There isnt any circumventing law. The company is registered through BOI and the company can legally purchase land. Employing an accountant to ensure taxes are paid...what is illegal??? Nothing illegal about that. Please also tell how much money is involved. Just to put it in the right context. Give an example how you can use this to buy a house and land with total worth of 4 million baht. Business has no other activities than owning the land and house, possible rent it out. I await your detailed reply. Detailed reply?....money involved would be 4 Million Baht as you stated....maybe I have misunderstood what you mean. Link to comment Share on other sites More sharing options...
Khun Jean Posted March 8, 2012 Share Posted March 8, 2012 Just describe what needs to be done to register a company that will own land. I mean personally knowing a few hundred that did this gives you access to this information. Why BOI? How to get that? Easy/hard. Shareholder structure etc. I just like to know. Link to comment Share on other sites More sharing options...
PattayaPhom Posted March 9, 2012 Share Posted March 9, 2012 Just describe what needs to be done to register a company that will own land. I mean personally knowing a few hundred that did this gives you access to this information. Why BOI? How to get that? Easy/hard. Shareholder structure etc. I just like to know. Rather than me spending 30 minutes or longer typing, I suggest you just google Thai Company Setup.....I would post a link but think we are not supposed to..you will find the relevant answers. Link to comment Share on other sites More sharing options...
Khun Jean Posted March 9, 2012 Share Posted March 9, 2012 Just describe what needs to be done to register a company that will own land. I mean personally knowing a few hundred that did this gives you access to this information. Why BOI? How to get that? Easy/hard. Shareholder structure etc. I just like to know. Rather than me spending 30 minutes or longer typing, I suggest you just google Thai Company Setup.....I would post a link but think we are not supposed to..you will find the relevant answers. That only gives information by lawyers and agents, conflicts of interests so i take that with a large grain of salt. I was looking for personal experiences. Link to comment Share on other sites More sharing options...
Langsuan Man Posted March 9, 2012 Share Posted March 9, 2012 Just describe what needs to be done to register a company that will own land. I mean personally knowing a few hundred that did this gives you access to this information. Why BOI? How to get that? Easy/hard. Shareholder structure etc. I just like to know. Rather than me spending 30 minutes or longer typing, I suggest you just google Thai Company Setup.....I would post a link but think we are not supposed to..you will find the relevant answers. That only gives information by lawyers and agents, conflicts of interests so i take that with a large grain of salt. I was looking for personal experiences. Of course it only gives information by lawyers and agents since to be legal a company has to be set up by a lawyer. Only a fool would try and do it themselves Link to comment Share on other sites More sharing options...
Khun Jean Posted March 9, 2012 Share Posted March 9, 2012 (edited) You do realize that lawyers and agents are not accountable for their mistakes. The decision making is yours and the risks are yours. Better to confirm with other sources what those lawyers and agents say. (It is a pity that 99% of the lawyers make it difficult for the other 1%) And to start a company a lawyer is not needed at all. Just go to the right departments and register. Have a look here: http://www.dbd.go.th/mainsite/index.php?id=99&L=1 Pretty straightforward. If you need a lawyer for that, good luck with doing business. Edited March 9, 2012 by Khun Jean Link to comment Share on other sites More sharing options...
PattayaPhom Posted March 9, 2012 Share Posted March 9, 2012 You do realize that lawyers and agents are not accountable for their mistakes. The decision making is yours and the risks are yours. Better to confirm with other sources what those lawyers and agents say. (It is a pity that 99% of the lawyers make it difficult for the other 1%) And to start a company a lawyer is not needed at all. Just go to the right departments and register. Have a look here: http://www.dbd.go.th...x.php?id=99&L=1 Pretty straightforward. If you need a lawyer for that, good luck with doing business. Personal experiences are that it is not a problem and I am not going to type in the full facts on setting up a company when you can read it online, also you already have a company set up so is a waste of my time..... Link to comment Share on other sites More sharing options...
Khun Jean Posted March 9, 2012 Share Posted March 9, 2012 (edited) You do realize that lawyers and agents are not accountable for their mistakes. The decision making is yours and the risks are yours. Better to confirm with other sources what those lawyers and agents say. (It is a pity that 99% of the lawyers make it difficult for the other 1%) And to start a company a lawyer is not needed at all. Just go to the right departments and register. Have a look here: http://www.dbd.go.th...x.php?id=99&L=1 Pretty straightforward. If you need a lawyer for that, good luck with doing business. Personal experiences are that it is not a problem and I am not going to type in the full facts on setting up a company when you can read it online, also you already have a company set up so is a waste of my time..... You are the one claiming specific knowledge why it is no problem, while many, me included do the opposite with a reason specifically why. Again you on the other hand says it is no problem and that would be very worthwhile information to know. So, please take that 30 minutes and share it. It will be much appreciated, not only by me but by many who are seeking security. Edited March 9, 2012 by Khun Jean Link to comment Share on other sites More sharing options...
chiangmaibruce Posted March 9, 2012 Share Posted March 9, 2012 <snip>The company is registered through BOI and the company can legally purchase land. <snip> What I suspect that Khun Jean is hinting at is that the BOI-approved company route you have suggested (as a vehicle to buy land) is wildly impractical for the average Joe Foreign companies with very substantial investments benefiting the Thai economy may have special privileges and exemptions for land ownership granted under section 27 of the Investment Promotion Act, Under section 44 of the Industrial Estate Authority of Thailand Act or section 65 of the Petroleum Act (only for the duration of their business in Thailand). http://www.thailandlawonline.com/article-blog/property-laws-in-thailand.html Section 27. A promoted person shall be permitted to own land in order to carry on the promoted activity to such an extent as the Board deems appropriate, even in excess of the permissible limit under other laws. http://www.thailawforum.com/database1/investment-promotion-act-3.html Link to comment Share on other sites More sharing options...
Khun Jean Posted March 9, 2012 Share Posted March 9, 2012 (edited) @chaingmaibruce, You are correct. As happens many times, when asked for details.. they are not given. Until those details are known, it is just another story based on nothing. The BOI cases are indeed very impractical for 99.9% of the people. The special privilege that can be obtained is that 1 rai can be purchased for residential use only. The OP was about 2 rai. It is just not possible without risk. Edited March 9, 2012 by Khun Jean Link to comment Share on other sites More sharing options...
pipo1000 Posted March 9, 2012 Share Posted March 9, 2012 @chaingmaibruce, You are correct. As happens many times, when asked for details.. they are not given. Until those details are known, it is just another story based on nothing. The BOI cases are indeed very impractical for 99.9% of the people. The special privilege that can be obtained is that 1 rai can be purchased for residential use only. The OP was about 2 rai. It is just not possible without risk. And I recall that in that case also 40.000.000 baht must be invested in stead of 4 Million. Link to comment Share on other sites More sharing options...
PattayaPhom Posted March 9, 2012 Share Posted March 9, 2012 You do realize that lawyers and agents are not accountable for their mistakes. The decision making is yours and the risks are yours. Better to confirm with other sources what those lawyers and agents say. (It is a pity that 99% of the lawyers make it difficult for the other 1%) And to start a company a lawyer is not needed at all. Just go to the right departments and register. Have a look here: http://www.dbd.go.th...x.php?id=99&L=1 Pretty straightforward. If you need a lawyer for that, good luck with doing business. Personal experiences are that it is not a problem and I am not going to type in the full facts on setting up a company when you can read it online, also you already have a company set up so is a waste of my time..... You are the one claiming specific knowledge why it is no problem, while many, me included do the opposite with a reason specifically why. Again you on the other hand says it is no problem and that would be very worthwhile information to know. So, please take that 30 minutes and share it. It will be much appreciated, not only by me but by many who are seeking security. Khun Jean....you have over 2000 posts already mostly on this forum and also know about Thai Companies.....its a fact that we all have different opinions and outlooks and yours is opposed to buying land through the company route whereas mine is the opposite...yes, I do have specific knowledge and my opinion is it is perfectly legal and safe to purchase land this way.... Link to comment Share on other sites More sharing options...
Khun Jean Posted March 9, 2012 Share Posted March 9, 2012 (edited) So why the secrecy..... not a few minutes to spare to tell how? I don't care much about opinions. There are many, most of them wrong. In printed form i like best. Experiences are very good too. Edited March 9, 2012 by Khun Jean Link to comment Share on other sites More sharing options...
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