New Requirement For New Thai Companies: Paid-Up Share Capital

[george]

Department of Business Development informs partnership or limited company to reveal the financial position of all Thai shareholders.

Office of the Central Company and Partnership Registration, Department of Business Development, Ministry of Commerce has issued the Order of Office of the Company Limited and Partnership Registration 205/2555 that the applicant to set up a partnership or a limited company must send the documents certified by the bank for stating the financial position of all Thai partners or Thai shareholders altogether with the set up application. The document must show the amount of money corresponding to the amount of the shares holding by each partner or each shareholder IF:

1. Partnership or limited company has foreign partner or foreign invests or holds share for less than 50% in the partnership or limited company, OR;

2. There is no foreign shareholder, but there is foreign director who has authority to sign or co-sign on behalf of the company.

This order will be effective from January 2, 2013.

กรมพัฒนาธุรกิจการค้า แจ้งห้างหุ้นส่วนหรือบริษัทจำกัด

แสดงฐานะทางการเงินของผู้ถือหุ้นทุกราย

สำนักงานทะเบียนหุ้นส่วนบริษัทกลาง กรมพัฒนาธุรกิจการค้า กระทรวงพาณิชย์ ได้ออกคำสั่งสำนักงานทะเบียนหุ้นส่วนบริษัทกลาง ที่ 205/2555 กำหนดให้ผู้ขอจดทะเบียนจัดตั้งห้างหุ้นส่วนหรือบริษัทจำกัด ส่งเอกสารหลักฐานที่ธนาคารออกให้เพื่อรับรองหรือแสดงฐานะการเงินของผู้เป็นหุ้นส่วนหรือผู้ถือหุ้นที่มีสัญชาติไทยทุกคนประกอบคำขอจดทะเบียน โดยเอกสารดังกล่าวต้องแสดงจำนวนเงินที่สอดคล้องกับจำนวนเงินที่นำมาลงหุ้น หรือผู้ถือหุ้นของผู้เป็นหุ้นส่วนหรือผู้ถือหุ้นแต่ละราย ในกรณีใดกรณีหนึ่งดังต่อไปนี้

1.กรณีห้างหุ้นส่วนหรือบริษัทจำกัดมีผู้เป็นหุ้นส่วนหรือผู้ถือหุ้นเป็นคนต่างด้าวลงหุ้น หรือถือหุ้นในห้างหุ้นส่วนหรือบริษัทจำกัดไม่ถึงร้อยละ 50 ของเงินลงหุ้นหรือทุนจดทะเบียน

2.กรณีบริษัทจำกัดไม่มีคนต่างด้าวเป็นผู้ถือหุ้น แต่คนต่างด้าวเป็นกรรมการผู้มีอำนาจจลงนามหรือร่วมลงนามผูกพันบริษัท

โดยประกาศฉบับดังกล่าวจะมีผลบังคับใช้ตั้งแต่ วันที่ 2 มกราคม 2556

-- Source and translation: Interactivethailand.com

http://interactivethailand.com

[quiksilva]

and so the 'loophole' was closed... goodbye company route to foreign land ownership.

Edited December 20, 2012 by quiksilva

[weescotsguy66]

and so the 'loophole' was closed... goodbye company route to foreign land ownership.

I am sure there will be still another way around this but it will get more expensive to own land, another way maybe use a umbrella company, whereby it is run 50 50 with a you having to pay the Thai portion of the income tax to use it. This will be more expensive but if you want a house it may be one way around it.

[konfuzed]

What's the way round this then? Buying a shell company or registering initially as wholly Thai then divesting a portion?

[KhunOr]

_{This new Order is merely enforcing the existing rules and it has been on the cards for a long time.}

_{I would advise people looking for ways to flout the law NOT to write about these methods on this forum. Don't you know that that Thai authorities read this too?}

_{Presumably the Order will affect new registrations only. It might not affect those already 'owning' companies with Thai nominee shareholders. Not yet anyway.}

Edited December 20, 2012 by KhunOr

[julemanden]

and so the 'loophole' was closed... goodbye company route to foreign land ownership.

And why is that ?

[Arkady]

This is thoroughly reprehensible when Thailand should have already opened up its service sector to 100% foreign ownership under its obligation to GATS which has unfortunately become utterly toothless.

The timing is interesting with Thailand shitting itself about how it is going to batten down the protectionist hatches against the AEC. They are already reassuring professional associations they will resist all calls from ASEAN to allow foreign professionals exemption from taking exams in Thai, even if they don't deal with Thai clients or patients. Now they ASEAN companies will be allowed to own 70% of Thai service sector companies they are going to go after the 30% Thai ownership. Meanwhile they will target hundreds of foreign SMEs.

This is not aimed specifically at Land Ownership because the Land Dept already has similar measures in place to deal with companies with foreign involvement that apply to transfer land titles.

[Arkady]

This is bound to be extended to cover registrations of new foreign shareholders or new foreign directors of companies that previously had no foreign participation. Otherwise it is too easy to add the foreigners some time after registering the company. If so, it will create a lot of trouble for established Thai companies that genuinely want to appoint a foreign director or bring in a foreign shareholder. It would also restrict the ability of Thais to sell shares to foreigners, particularly if they have many Thai shareholders who refuse to disclose their assets. I guess they will introduce exemptions for public companies and companies over a certain size of paid up capital.

[Arkady]

What I can see being most unfair is that they are going to go after foreigners who set up SME businesses with their Thai wives. When it suits them to consider a husband and wife's assets as joint property, they will. In this case you can sure they insist on a complete separation of assets.

[auserb]

I bought a condo of the plan. It should be completed by the end of March. I bought it in Thai company name. I have not set up a company as yet. it is required from me to set up company within a year of complition of the condo. Question is; will the new law effect me and how will it effect me? can you help please.

[thaicbr]

I bought a condo of the plan. It should be completed by the end of March. I bought it in Thai company name. I have not set up a company as yet. it is required from me to set up company within a year of complition of the condo. Question is; will the new law effect me and how will it effect me? can you help please.

If it's s Condo. Why did you buy it in a company name. I thought foreigners could own condominiums.

sent from my Q6

[auserb]

I bought a condo of the plan. It should be completed by the end of March. I bought it in Thai company name. I have not set up a company as yet. it is required from me to set up company within a year of complition of the condo. Question is; will the new law effect me and how will it effect me? can you help please.

If it's s Condo. Why did you buy it in a company name. I thought foreigners could own condominiums.

sent from my Q6

but it was cheaper, obviiastly

[Tatsujin]

I bought a condo of the plan. It should be completed by the end of March. I bought it in Thai company name. I have not set up a company as yet. it is required from me to set up company within a year of complition of the condo. Question is; will the new law effect me and how will it effect me? can you help please.

You can buy it in your own name 100% provided that it's above a certain level and providing foreign ownership within the whole complex is less than a certain amount. A Google will find the specific figures for you.

[auserb]

I bought a condo of the plan. It should be completed by the end of March. I bought it in Thai company name. I have not set up a company as yet. it is required from me to set up company within a year of complition of the condo. Question is; will the new law effect me and how will it effect me? can you help please.

You can buy it in your own name 100% provided that it's above a certain level and providing foreign ownership within the whole complex is less than a certain amount. A Google will find the specific figures for you.

yeah but what is the certain level? and what is whole complex,and less than certain ammount, can you please simplify it

[KHR1010]

Foreign Ownership in Thailand

Introduction:

Foreigners from all around the world buy real estate, both residential & commercial in Thailand. This essay attempts to explain the current laws & legal options available to potential foreign (non-Thai) purchasers.

Should you find any "passages" to be ambiguous or need further clarification on any matter, please do not hesitate in contacting us.

Ownership methods:

I. Condominium:

Acquiring a condominium is gaining in popularity amongst foreigners. A condominium is a building that can have its separate portions sold to individuals or groups for personal property ownership.

Foreign purchasers are allowed under Thai law to purchase and own condominiums in Thailand.

There are five classes of criteria which alternative qualify foreigners as owners of condominium:

a) Holding a residency permit under Thai Immigration law, or

b ) Permitted to stay in Thailand under the Investment Promotion law (BIO), or

c) A Thai registered entity with at least 51% of share held by Thai shareholder, or

d) Foreign juristic entity in receipt of a promotion certificate under the Investment Promotion law (BOI), or

e) A foreigner or foreign entity remitting a foreign currency into Thailand, or withdrawing money from Thai Baht account of the persons residing abroad, or withdrawing from foreign currency account.

Fortunately the last criteria applies to most foreign condominium purchasers and therefore it is the most typical way for foreigners to buy a condominium in Thailand.

According to the condominium act, foreigners or a foreign legal entity normally can acquire up to, but not exceeding 49% of a condominium block (direct freehold).

If a foreigner wants to register the purchase at the Land Office he has to submit a letter of guarantee from the condominium juristic person which proofs the proportion of foreign ownership among other documents. If the quota of 49% is already used, he can set a Thai company to purchase a condominium without restrictions. Another option is leasing. Condo-minium leases, like land leased are generally prepaid for 30 years with option s of renewing for two additional 30 year periods. In effect, the pre-paid rent is the same as a freehold or purchase price.

A further restriction according to the Condominium Act is that a foreigner must bring currency into Thailand to finance the purchase of the condominium. However, expats which are working in Thailand can use funds earned in Thailand on condition that their funds are paid into a non-resident account.

Further, the purchaser must obtain a Foreign Exchange Transaction form(FET) from the bank as proof of the remittance. This form will be issued by the receiving bank and is filed at the Land Department when the foreign purchaser registers the purchase. The amount of money fixed in the FET form must cover the whole of the condominium price. Should the remittance be less than $20000 USD, the bank will issue a "credit advice" in English which is not acceptable by the Land Office as proof of remittance for the condominium purchase. In case of this, the purchaser has to ask the bank to issue a "letter of guarantee" as evidence of remittance.

II. Investment / BOI:

Since 2002, a foreigner is permitted by the Ministry of Interior to purchase land up to one rai (1600 square meters) for residential purpose, on condition that he invests 40 million Baht in Thailand, for some purpose other than ownership of real estate itself. Actually, this option is problematical for the majority of foreign investors because of the legal restrictions involved and is relatively seldom used.

III. Leasing:

Leasing is a popular and straightforward option to acquire a property in Thailand. The maximum duration of a lease permitted under Thai law for non-commercial usage is 30 years, (for commercial usage 50 years),renewable for two additional terms of 30 years (commercial usage 50 years), if contractually agreed.

IMPORTANT! Any land leased for more than 3 years must be registered at the Land Department or it is only enforceable for the first three years.

It is possible under Thai law to lease land as an individual rather than through a Thai company.

IV. Corporate Ownership:

A further option is to establish a Thailand-registered company, preferably a Thai limited company, to acquire land. It needs a minimum of 7 different shareholders at all times, but only one director who can be a foreigner. At the beginning this director may have to be Thai in order to apply for the Tax ID and VAT registration of the Company. Thai law (land Code) requires that at lease 51% of the shares are held by Thai nationals and a maximum 49% of the shares may be owned by foreign shareholder because the land Code prohibition on foreign land ownership includes not only foreign individuals, but also Thai registered companies in which foreigners own more that 49% of the shares. Because there's no restriction under Thai law that one share must equal one vote, it is allowed to issue classified shares: The A-Shares("Ordinary Shares") where the holder one share is entitled to one vote and theB-Shares ("preferred Share") where a shareholder must have multiple shares in order to obtain one vote. The foreign shareholders will subscribe to all A-Shares, whereby the B-shares are held by Thai holders. This structure enables the foreign minority shareholder to hold fewer numbers of shares, but in fact control the company by voting rights.

Since the foreign shareholder of the Thai Company can be a natural or a juristic person, it is possible to use an off-shore entity, e.g.a BVI (British Virgin Island) Company, for tax efficiency.

V. Managed Estates:

Currently, managed estates are very common. They all vary in structure. Normally the managed property is offered as a freehold purchase through Thai companies or with a leasehold structure concerning the buildings in combination with subscribing to a certain number of shares in a Thai company, which owns the land underneath the properties that are leased. This structure is advisable because the lessees of the buildings are more secure when they are also indirectly the "joint-landlords". With a land owning company which effectly protection that a lease is protected from being terminated by requiring typically at lease 75% of the owners to terminate a lease.

The potential problem with an "owner operated" managed estate is the necessity for the majority of the owners to confer & meet with each other. This may not be deemed as a practical or indeed attractive commitment.

Edited December 20, 2012 by KHR1010

[Tatsujin]

I bought a condo of the plan. It should be completed by the end of March. I bought it in Thai company name. I have not set up a company as yet. it is required from me to set up company within a year of complition of the condo. Question is; will the new law effect me and how will it effect me? can you help please.

You can buy it in your own name 100% provided that it's above a certain level and providing foreign ownership within the whole complex is less than a certain amount. A Google will find the specific figures for you.

yeah but what is the certain level? and what is whole complex,and less than certain ammount, can you please simplify it

Jeez you're lazy . . . 2 mins on google will answer all your questions:

http://www.cbre.co.th/en/Bangkok-condo-apartment-ownership-law.asp

http://www.propertyguidethailand.com/thailaw.html

http://www.samuiforsale.com/knowledge/practical-legal-for-condos.html

As with everything, talk to a (reputable) lawyer to get the latest correct legal advice.

[auserb]

Foreign Ownership in Thailand

Introduction:

Foreigners from all around the world buy real estate, both residential & commercial in Thailand. This essay attempts to explain the current laws & legal options available to potential foreign (non-Thai) purchasers.

Should you find any "passages" to be ambiguous or need further clarification on any matter, please do not hesitate in contacting us.

Ownership methods:

I. Condominium:

Acquiring a condominium is gaining in popularity amongst foreigners. A condominium is a building that can have its separate portions sold to individuals or groups for personal property ownership.

Foreign purchasers are allowed under Thai law to purchase and own condominiums in Thailand.

There are five classes of criteria which alternative qualify foreigners as owners of condominium:

a) Holding a residency permit under Thai Immigration law, or

b ) Permitted to stay in Thailand under the Investment Promotion law (BIO), or

c) A Thai registered entity with at least 51% of share held by Thai shareholder, or

d) Foreign juristic entity in receipt of a promotion certificate under the Investment Promotion law (BOI), or

e) A foreigner or foreign entity remitting a foreign currency into Thailand, or withdrawing money from Thai Baht account of the persons residing abroad, or withdrawing from foreign currency account.

Fortunately the last criteria applies to most foreign condominium purchasers and therefore it is the most typical way for foreigners to buy a condominium in Thailand.

According to the condominium act, foreigners or a foreign legal entity normally can acquire up to, but not exceeding 49% of a condominium block (direct freehold).

If a foreigner wants to register the purchase at the Land Office he has to submit a letter of guarantee from the condominium juristic person which proofs the proportion of foreign ownership among other documents. If the quota of 49% is already used, he can set a Thai company to purchase a condominium without restrictions. Another option is leasing. Condo-minium leases, like land leased are generally prepaid for 30 years with option s of renewing for two additional 30 year periods. In effect, the pre-paid rent is the same as a freehold or purchase price.

A further restriction according to the Condominium Act is that a foreigner must bring currency into Thailand to finance the purchase of the condominium. However, expats which are working in Thailand can use funds earned in Thailand on condition that their funds are paid into a non-resident account.

Further, the purchaser must obtain a Foreign Exchange Transaction form(FET) from the bank as proof of the remittance. This form will be issued by the receiving bank and is filed at the Land Department when the foreign purchaser registers the purchase. The amount of money fixed in the FET form must cover the whole of the condominium price. Should the remittance be less than $20000 USD, the bank will issue a "credit advice" in English which is not acceptable by the Land Office as proof of remittance for the condominium purchase. In case of this, the purchaser has to ask the bank to issue a "letter of guarantee" as evidence of remittance.

II. Investment / BOI:

Since 2002, a foreigner is permitted by the Ministry of Interior to purchase land up to one rai (1600 square meters) for residential purpose, on condition that he invests 40 million Baht in Thailand, for some purpose other than ownership of real estate itself. Actually, this option is problematical for the majority of foreign investors because of the legal restrictions involved and is relatively seldom used.

III. Leasing:

Leasing is a popular and straightforward option to acquire a property in Thailand. The maximum duration of a lease permitted under Thai law for non-commercial usage is 30 years, (for commercial usage 50 years),renewable for two additional terms of 30 years (commercial usage 50 years), if contractually agreed.

IMPORTANT! Any land leased for more than 3 years must be registered at the Land Department or it is only enforceable for the first three years.

It is possible under Thai law to lease land as an individual rather than through a Thai company.

IV. Corporate Ownership:

A further option is to establish a Thailand-registered company, preferably a Thai limited company, to acquire land. It needs a minimum of 7 different shareholders at all times, but only one director who can be a foreigner. At the beginning this director may have to be Thai in order to apply for the Tax ID and VAT registration of the Company. Thai law (land Code) requires that at lease 51% of the shares are held by Thai nationals and a maximum 49% of the shares may be owned by foreign shareholder because the land Code prohibition on foreign land ownership includes not only foreign individuals, but also Thai registered companies in which foreigners own more that 49% of the shares. Because there's no restriction under Thai law that one share must equal one vote, it is allowed to issue classified shares: The A-Shares("Ordinary Shares") where the holder one share is entitled to one vote and theB-Shares ("preferred Share") where a shareholder must have multiple shares in order to obtain one vote. The foreign shareholders will subscribe to all A-Shares, whereby the B-shares are held by Thai holders. This structure enables the foreign minority shareholder to hold fewer numbers of shares, but in fact control the company by voting rights.

Since the foreign shareholder of the Thai Company can be a natural or a juristic person, it is possible to use an off-shore entity, e.g.a BVI (British Virgin Island) Company, for tax efficiency.

V. Managed Estates:

Currently, managed estates are very common. They all vary in structure. Normally the managed property is offered as a freehold purchase through Thai companies or with a leasehold structure concerning the buildings in combination with subscribing to a certain number of shares in a Thai company, which owns the land underneath the properties that are leased. This structure is advisable because the lessees of the buildings are more secure when they are also indirectly the "joint-landlords". With a land owning company which effectly protection that a lease is protected from being terminated by requiring typically at lease 75% of the owners to terminate a lease.

The potential problem with an "owner operated" managed estate is the necessity for the majority of the owners to confer & meet with each other. This may not be deemed as a practical or indeed attractive commitment.

thank you so much

[auserb]

I bought a condo of the plan. It should be completed by the end of March. I bought it in Thai company name. I have not set up a company as yet. it is required from me to set up company within a year of complition of the condo. Question is; will the new law effect me and how will it effect me? can you help please.

You can buy it in your own name 100% provided that it's above a certain level and providing foreign ownership within the whole complex is less than a certain amount. A Google will find the specific figures for you.

yeah but what is the certain level? and what is whole complex,and less than certain ammount, can you please simplify it

Jeez you're lazy . . . 2 mins on google will answer all your questions:

http://www.cbre.co.t...nership-law.asp

http://www.propertyg...om/thailaw.html

http://www.samuifors...for-condos.html

As with everything, talk to a (reputable) lawyer to get the latest correct legal advice.

[monty]

Doesn't look good to me, it'll become nigh on to impossible to for example start a small company with your Thai family as majority shareholders, unless they have proven assets.

The way I read it it doesn't even look at paid up capital, but rather the face value of the shares.

So a 2 million Baht registered company (minimum needed to allow one foreign employee), would see Thai shareholders owning shares amounting to just over 1 million Baht! So they would need to be able to prove they actually own/earned that kind of money!

As Arkady posted, this will not be good at all for small investors currently trying to do all as perfectly legal as possible!

[auserb]

Oh, God does that mean that I will loose everything as I paid 1,300.000 BHT for condo of the plan. will I lose it before It is finished?

[fletchsmile]

Don't see a big problem with this really. All it's asking for us financial info on Thai stakeholders who are involved in enterprises with foreigners. For people with legit arrangements it will be a bit of extra hassle in terms of admin.

For condos you can own yourself anyway - so no change. For companies your wife has an interest in, not much change as you just add in some copies of bank statements and other assets she has, which these days they often ask for anyway as proof of funds at starting a business:)

For people flouting the law, using nominees where it's clear the Thai has no money or financial interest nor real connection and it's just a front, then "som nam na", the risk has existed for years that Thailand might actually one day start to enforce some of its laws. This looks a small start

[crazykopite]

Foreign Ownership in Thailand

Introduction:

Foreigners from all around the world buy real estate, both residential & commercial in Thailand. This essay attempts to explain the current laws & legal options available to potential foreign (non-Thai) purchasers.

Should you find any "passages" to be ambiguous or need further clarification on any matter, please do not hesitate in contacting us.

Ownership methods:

I. Condominium:

Acquiring a condominium is gaining in popularity amongst foreigners. A condominium is a building that can have its separate portions sold to individuals or groups for personal property ownership.

Foreign purchasers are allowed under Thai law to purchase and own condominiums in Thailand.

There are five classes of criteria which alternative qualify foreigners as owners of condominium:

a) Holding a residency permit under Thai Immigration law, or

b ) Permitted to stay in Thailand under the Investment Promotion law (BIO), or

c) A Thai registered entity with at least 51% of share held by Thai shareholder, or

d) Foreign juristic entity in receipt of a promotion certificate under the Investment Promotion law (BOI), or

e) A foreigner or foreign entity remitting a foreign currency into Thailand, or withdrawing money from Thai Baht account of the persons residing abroad, or withdrawing from foreign currency account.

Fortunately the last criteria applies to most foreign condominium purchasers and therefore it is the most typical way for foreigners to buy a condominium in Thailand.

According to the condominium act, foreigners or a foreign legal entity normally can acquire up to, but not exceeding 49% of a condominium block (direct freehold).

If a foreigner wants to register the purchase at the Land Office he has to submit a letter of guarantee from the condominium juristic person which proofs the proportion of foreign ownership among other documents. If the quota of 49% is already used, he can set a Thai company to purchase a condominium without restrictions. Another option is leasing. Condo-minium leases, like land leased are generally prepaid for 30 years with option s of renewing for two additional 30 year periods. In effect, the pre-paid rent is the same as a freehold or purchase price.

A further restriction according to the Condominium Act is that a foreigner must bring currency into Thailand to finance the purchase of the condominium. However, expats which are working in Thailand can use funds earned in Thailand on condition that their funds are paid into a non-resident account.

Further, the purchaser must obtain a Foreign Exchange Transaction form(FET) from the bank as proof of the remittance. This form will be issued by the receiving bank and is filed at the Land Department when the foreign purchaser registers the purchase. The amount of money fixed in the FET form must cover the whole of the condominium price. Should the remittance be less than $20000 USD, the bank will issue a "credit advice" in English which is not acceptable by the Land Office as proof of remittance for the condominium purchase. In case of this, the purchaser has to ask the bank to issue a "letter of guarantee" as evidence of remittance.

II. Investment / BOI:

Since 2002, a foreigner is permitted by the Ministry of Interior to purchase land up to one rai (1600 square meters) for residential purpose, on condition that he invests 40 million Baht in Thailand, for some purpose other than ownership of real estate itself. Actually, this option is problematical for the majority of foreign investors because of the legal restrictions involved and is relatively seldom used.

III. Leasing:

Leasing is a popular and straightforward option to acquire a property in Thailand. The maximum duration of a lease permitted under Thai law for non-commercial usage is 30 years, (for commercial usage 50 years),renewable for two additional terms of 30 years (commercial usage 50 years), if contractually agreed.

IMPORTANT! Any land leased for more than 3 years must be registered at the Land Department or it is only enforceable for the first three years.

It is possible under Thai law to lease land as an individual rather than through a Thai company.

IV. Corporate Ownership:

A further option is to establish a Thailand-registered company, preferably a Thai limited company, to acquire land. It needs a minimum of 7 different shareholders at all times, but only one director who can be a foreigner. At the beginning this director may have to be Thai in order to apply for the Tax ID and VAT registration of the Company. Thai law (land Code) requires that at lease 51% of the shares are held by Thai nationals and a maximum 49% of the shares may be owned by foreign shareholder because the land Code prohibition on foreign land ownership includes not only foreign individuals, but also Thai registered companies in which foreigners own more that 49% of the shares. Because there's no restriction under Thai law that one share must equal one vote, it is allowed to issue classified shares: The A-Shares("Ordinary Shares") where the holder one share is entitled to one vote and theB-Shares ("preferred Share") where a shareholder must have multiple shares in order to obtain one vote. The foreign shareholders will subscribe to all A-Shares, whereby the B-shares are held by Thai holders. This structure enables the foreign minority shareholder to hold fewer numbers of shares, but in fact control the company by voting rights.

Since the foreign shareholder of the Thai Company can be a natural or a juristic person, it is possible to use an off-shore entity, e.g.a BVI (British Virgin Island) Company, for tax efficiency.

V. Managed Estates:

Currently, managed estates are very common. They all vary in structure. Normally the managed property is offered as a freehold purchase through Thai companies or with a leasehold structure concerning the buildings in combination with subscribing to a certain number of shares in a Thai company, which owns the land underneath the properties that are leased. This structure is advisable because the lessees of the buildings are more secure when they are also indirectly the "joint-landlords". With a land owning company which effectly protection that a lease is protected from being terminated by requiring typically at lease 75% of the owners to terminate a lease.

The potential problem with an "owner operated" managed estate is the necessity for the majority of the owners to confer & meet with each other. This may not be deemed as a practical or indeed attractive commitment.

It is my understanding that a Thai Limited Com pany now only requires 3 shareholders of which 1 must be a Thai national, the Thai shareholder would hold 51% of the company shares the other 2 shareholders could be farang correct me if I am wrong !!!!!!!

[crazykopite]

Oh, God does that mean that I will loose everything as I paid 1,300.000 BHT for condo of the plan. will I lose it before It is finished?

There are many existing Thai Ltd Companies for sale that have been registered for a number of years all you have to do as far as I am aware is to purchase it and have your name included on it I was always told that it would be wise to keep the old Farang shareholder on the Company for a year giving them 1 share in other words you would hold 48% . I understand that this new instruction takes place after 2nd January 2013 so you have still time to set up a Thai Company at its current rules it is very straight forward.

[auserb]

Oh, God does that mean that I will loose everything as I paid 1,300.000 BHT for condo of the plan. will I lose it before It is finished?

There are many existing Thai Ltd Companies for sale that have been registered for a number of years all you have to do as far as I am aware is to purchase it and have your name included on it I was always told that it would be wise to keep the old Farang shareholder on the Company for a year giving them 1 share in other words you would hold 48% . I understand that this new instruction takes place after 2nd January 2013 so you have still time to set up a Thai Company at its current rules it is very straight forward.

Thank you but I live in Australia . How can I form a copany before 3rd of January?

[LivinLOS]

Oh, God does that mean that I will loose everything as I paid 1,300.000 BHT for condo of the plan. will I lose it before It is finished?

There are many existing Thai Ltd Companies for sale that have been registered for a number of years all you have to do as far as I am aware is to purchase it and have your name included on it I was always told that it would be wise to keep the old Farang shareholder on the Company for a year giving them 1 share in other words you would hold 48% . I understand that this new instruction takes place after 2nd January 2013 so you have still time to set up a Thai Company at its current rules it is very straight forward.

Thank you but I live in Australia . How can I form a copany before 3rd of January?

You sir, are fuc_ked.

I start the bidding at 500k..

[auserb]

Oh, God does that mean that I will loose everything as I paid 1,300.000 BHT for condo of the plan. will I lose it before It is finished?

There are many existing Thai Ltd Companies for sale that have been registered for a number of years all you have to do as far as I am aware is to purchase it and have your name included on it I was always told that it would be wise to keep the old Farang shareholder on the Company for a year giving them 1 share in other words you would hold 48% . I understand that this new instruction takes place after 2nd January 2013 so you have still time to set up a Thai Company at its current rules it is very straight forward.

Thank you but I live in Australia . How can I form a copany before 3rd of January?

You sir, are fuc_ked.

I start the bidding at 500k..

hope you and upa same way

[khunPer]

It is my understanding that a Thai Limited Com pany now only requires 3 shareholders of which 1 must be a Thai national, the Thai shareholder would hold 51% of the company shares the other 2 shareholders could be farang correct me if I am wrong !!!!!!!

Yes, some years back rules were changed from 7 to 3 shareholders. Majority or 51% Thai ownership of shares. At same time funds should be proven - i.e. no moneyless nominees.

Actuall not much news, apart from you now have to follow the rules.

You may have two share-classes (A and B shares), where each preferred share fx. have 10 votes, and a normal share 1 vote.

[Asiantravel]

i have never understood foreigners putting themselves at risk of this kind of torture

Much easier to keep your money in assets in your home country and simply rent here

Edited December 20, 2012 by Asiantravel

[crazykopite]

i have never understood foreigners putting themselves at risk of this kind of torture

Much easier to keep your money in assets in your home country and simply rent here

Yes I know what you mean but when I did as you suggest my investment plunged overnight as did my private pension and both these were managed by well known and highly recommended Companies the only guarantee in life is that one day we die all the rest is a gamble I did rent for 4 years but the problem is when you rent from a Thai and you make vast improvements to the property at your own expense the owner comes back and tells you he is now putting the rent up or worse he now wants the house back 3 years ago I purchased a property I have been offered in excess of 80,000 bht per month to rent it out and have declined however if I were to sell for the same price as purchased 3 years ago I would still make a good profit due to the exchange rates and 3 years of say 50 k a month would have saved me 1.8 mil thai bht in rent as I did not come to Thailand to live in a tin shed.

[phuketrichard]

Can america still hold 100% of a company??