Commerce probes 329 Chon Buri, Prachuap firms for 'nominee' violations

The Nation

BANGKOK: -- The Commerce Ministry has found 329 companies in Chon Buri and Prachuap Khiri Khan that are suspected of breaching the Foreign Business Act (FBA) by having Thais acting as nominees so that foreigners can hold majority control.

newsjsOf the total, 303 are in Chon Buri and 26 in Prachuap Khiri Khan, Deputy Commerce Minister Natthawut Saikua said Monday.

Of the 26 companies in Prachuap, two have confessed to the charges - a real-estate agent and a tailor.

Of the 303 companies in Chon Buri, 20 operate businesses listed in Appendix III of the FBA covering those in which Thais are not yet ready to compete with foreigners.

-- The Nation 2013-02-04

Well let's hope that a well known property speculator is not among em!

22 non-Thai companies breach foreign business law

By English News

BANGKOK, Feb 4 – Thailand's Ministry of Commerce has identified 22 violators of the Thai Foreign Business Act for holding more than half of the corporate shares when the law limits foreign ownership at a maximum 49 per cent.

Deputy Commerce Minister Nattawut Saikua said today that random checks by the Business Development Department found the 22 companies – 20 in Chonburi and two in Prachuap Khiri Khan – had breached the law by having Thai citizens holding shares in proxy for them.

The Foreign Business Act limits non-Thai ownership in a business operation in the kingdom at 49 per cent.

Mr Nattawut said the 53 Thais and foreigners in the 22 companies are in large- and small-sized real estate businesses, tourism, food and beverages, service and textile businesses.

Seventeen are Thai citizens and 36 others foreigners. Penalties for violating the Foreign Business Act are a maximum three-year jail term or fine between Bt100,000 and Bt1 million, or both.

The Business Development Department has concentrated its inspections in five major tourism provinces – Chonburi, Phrachuap Khiri Khan, Phuket, Surat Thani and Krabi.

Mr Nattawut said the inspections were to ensure fairness for Thai business operators, adding that foreign ownership of more than 50 per cent in a company is allowed as long as the investors inform the Commerce Ministry. (MCOT online news)

-- TNA 2013-02-04

Seems as if the Red Shirt leadership is trying to move in on business operations now,rather like Jutuporn telling us all how people kept on giving him money and property and he didn't know why.or where the funds were coming from. Seems to me that their is a decaying rodent lying about somewhere..

Edited February 4, 201313 yr by siampolee

Are these large or small companies?

So, it looks like the red shirts have a list of 303 bussiness they wish to aquire. Oh, I love the warm and fuzzy feeling. Anyway, I rent nearly everything in Thailand, doesn't worry me

Is Dtac registered in any of these provinces ?

I feel sorry for all the Thai's that will loose their jobs because of this. Cut off their nose to spite their face...

Edited February 4, 201313 yr by ThaiRich

Nattawut Saikua enforcing the law?

They'll be sending YS to Suffragette evenings next

Yes looks like a corruption squeeze to pick up some money, acquire some companies or wipe out friends competition. For me I closed my business and wound it up, have sold all my personal holdings, back off home for a while soon. If decide to come back again would be reticent about investing here again, things did work out OK but always that doubt.

Of the 303 companies in Chon Buri, 20 operate businesses listed in Appendix III of the FBA covering those in which Thais are not yet ready to compete with foreigners.

That just about covers every business under the sun. There's a reason they are not ready......... they are not willing.

How much longer will this ridiculous excuse be used to stop competition ??

Of the 303 companies in Chon Buri, 20 operate businesses listed in Appendix III of the FBA covering those in which Thais are not yet ready to compete with foreigners.

That just about covers every business under the sun. There's a reason they are not ready......... they are not willing.

How much longer will this ridiculous excuse be used to stop competition ??

I am going to say FOREVER.

Of the 303 companies in Chon Buri, 20 operate businesses listed in Appendix III of the FBA covering those in which Thais are not yet ready to compete with foreigners.

That just about covers every business under the sun. There's a reason they are not ready......... they are not willing.

How much longer will this ridiculous excuse be used to stop competition ??

Forever!! As long as there is no foreign competition, the Thai owned business won't have to be fair, honest, give good service and basically take care of their customers.

I feel sorry for all the Thai's that will loose their jobs because of this. Cut off their nose to spite their face...

What do you suggest. that they allow illegal business to operate so that a few Thais can benefit? If the companies are breaking the law, that's not the fault of the government. Stay within the law and you'll be fine.

So, it looks like the red shirts have a list of 303 bussiness they wish to aquire. Oh, I love the warm and fuzzy feeling. Anyway, I rent nearly everything in Thailand, doesn't worry me

So how do you go about renting a business?

Of the 303 companies in Chon Buri, 20 operate businesses listed in Appendix III of the FBA covering those in which Thais are not yet ready to compete with foreigners.

That just about covers every business under the sun. There's a reason they are not ready......... they are not willing.

How much longer will this ridiculous excuse be used to stop competition ??

Forever!! As long as there is no foreign competition, the Thai owned business won't have to be fair, honest, give good service and basically take care of their customers.

LOL. You think foreign companies are fair? There are plenty of corrupt foreign businesses. Just because they're foreign doesn't automatically make them fair, honest and give good service. In fact, even on this forum I've often read how corrupt foreign estate agents in Thailand are.

Of the 303 companies in Chon Buri, 20 operate businesses listed in Appendix III of the FBA covering those in which Thais are not yet ready to compete with foreigners.

That just about covers every business under the sun. There's a reason they are not ready......... they are not willing.

How much longer will this ridiculous excuse be used to stop competition ??

They are specifically listed but the obvious ones are trading in land and media enterprises (newspaper publication, radio or television station).

correction - these are not allowable for an alien to operate for special reasons

the not ready to compete list includes things such as architectural, engineering accounting and legal services.

Edited February 4, 201313 yr by Orac

Mr Nattawut said the 53 Thais and foreigners in the 22 companies are in large- and small-sized real estate businesses, tourism, food and beverages, service and textile businesses.

Hmmm, what is classified as tourism , food and beverage?

So hotel owners , bar owners, restaurant owners are all in breach?

Is not the criteria little too broad?

Mr Nattawut said the 53 Thais and foreigners in the 22 companies are in large- and small-sized real estate businesses, tourism, food and beverages, service and textile businesses.

Hmmm, what is classified as tourism , food and beverage?

So hotel owners , bar owners, restaurant owners are all in breach?

Is not the criteria little too broad?

Foreigners can't own any of these beyond 49%. As to whether they control 100%, that depends on how broad the judges brush is that day.

Mr Nattawut said the 53 Thais and foreigners in the 22 companies are in large- and small-sized real estate businesses, tourism, food and beverages, service and textile businesses.

Hmmm, what is classified as tourism , food and beverage?

So hotel owners , bar owners, restaurant owners are all in breach?

Is not the criteria little too broad?

Foreigners can't own any of these beyond 49%. As to whether they control 100%, that depends on how broad the judges brush is that day.

Except American Foreigners, They Can own 100% in most of the restricted businesses .

I feel sorry for all the Thai's that will loose their jobs because of this. Cut off their nose to spite their face...

What do you suggest. that they allow illegal business to operate so that a few Thais can benefit? If the companies are breaking the law, that's not the fault of the government. Stay within the law and you'll be fine.

No, I would suggest that they allow those businesses to be legal and benefit the majority of Thais. Not ready to compete must be the poorest excuse for xenophobia I've heard in my life.

Edited February 4, 201313 yr by jbrain

Mr Nattawut said the 53 Thais and foreigners in the 22 companies are in large- and small-sized real estate businesses, tourism, food and beverages, service and textile businesses.

Hmmm, what is classified as tourism , food and beverage?

So hotel owners , bar owners, restaurant owners are all in breach?

Is not the criteria little too broad?

Foreigners can't own any of these beyond 49%. As to whether they control 100%, that depends on how broad the judges brush is that day.

Except American Foreigners, They Can own 100% in most of the restricted businesses .

Very true, but i hear that applications for amity treaty businesses are becoming less and less.

Am I correct that the OP is referring to foreigners who set up a Thai company using Thai nominee shareholders to hold 51%, who then use articles of association to provide majority voting rights to foreign shareholders by the preferential shares?

I recall there was a "crackdown" announced some months back on this practice? Thai lawyers were saying don't worry it's OK where in fact it's illegal - is that the situation?

Am I correct that the OP is referring to foreigners who set up a Thai company using Thai nominee shareholders to hold 51%, who then use articles of association to provide majority voting rights to foreign shareholders by the preferential shares?

I recall there was a "crackdown" announced some months back on this practice? Thai lawyers were saying don't worry it's OK where in fact it's illegal - is that the situation?

The thing is nominees have always been illegal.

Just ask dtac, hochim, cemex or Tesco. There legal teams know all about it. Selective crackdown of the month.

Edited February 4, 201313 yr by Thai at Heart

It begs the question why are they not capable of competing? Answers on a postcard should be addressed to The Thai Government La La land.

It begs the question why are they not capable of competing? Answers on a postcard should be addressed to The Thai Government La La land.

The sad thing is, what odds the foreign owned companies try so hard to be clean, some might even pay a baht or two of tax......

I feel sorry for all the Thai's that will loose their jobs because of this. Cut off their nose to spite their face...

What do you suggest. that they allow illegal business to operate so that a few Thais can benefit? If the companies are breaking the law, that's not the fault of the government. Stay within the law and you'll be fine.

No, I would suggest that they allow those businesses to be legal and benefit the majority of Thais. Not ready to compete must be the poorest excuse for xenophobia I've heard in my life.

They better be ready by 2015 ...but I'm betting AEC will be delayed indefinitely, for various reasons.

Am I correct that the OP is referring to foreigners who set up a Thai company using Thai nominee shareholders to hold 51%, who then use articles of association to provide majority voting rights to foreign shareholders by the preferential shares?

I recall there was a "crackdown" announced some months back on this practice? Thai lawyers were saying don't worry it's OK where in fact it's illegal - is that the situation?

The thing is nominees have always been illegal.

Just ask dtac, hochim, cemex or Tesco. There legal teams know all about it. Selective crackdown of the month.

Just remembered financial reward was offered for informers, so reading between the lines a few legal /accounting practices have been dobbed in

Am I correct that the OP is referring to foreigners who set up a Thai company using Thai nominee shareholders to hold 51%, who then use articles of association to provide majority voting rights to foreign shareholders by the preferential shares?

I recall there was a "crackdown" announced some months back on this practice? Thai lawyers were saying don't worry it's OK where in fact it's illegal - is that the situation?

The thing is nominees have always been illegal.

Just ask dtac, hochim, cemex or Tesco. There legal teams know all about it. Selective crackdown of the month.

Just remembered financial reward was offered for informers, so reading between the lines a few legal /accounting practices have been dobbed in

Basically, a foreigner cannot work as a waiter his own bar, he cannot do admin work as a secretary in a travel agent. It isn't likely to be accounting problems.

Etc etc. 99% if these accusations are unproveable, so this is just a shakedown.

Foriegners! The new Jews.

And operating in areas Thais cannot compete in?

Isn't that all areas?