Commerce Probes 329 Chon Buri, Prachuap Firms For Breaching The Foreign Business Act

[lemoncake]

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.

exactly what i was saying. So basically anyone can be "swept away" because pretty much everything and anything falls under their umbrella

[lemoncake]

Foriegners! The new Jews.

And operating in areas Thais cannot compete in?

Isn't that all areas?

When you think all the low's have been set, you come along and set a new record

[Thai at Heart]

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.

exactly what i was saying. So basically anyone can be "swept away" because pretty much everything and anything falls under their umbrella

You can have 49%, but don't dare pull a pint or do the booze run.

That's the way the are. You can be general manager, get a work permit, but don't be general dogsbody.

[lemoncake]

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.

If i do not do any work in my hotel, no work would be done at all by the "local" staff

[lemoncake]

You can have 49%, but don't dare pull a pint or do the booze run.

That's the way the are. You can be general manager, get a work permit, but don't be general dogsbody.

You mean be a general manager Thai style? sit on the comfy chair with legs up on the table and do nothing all day

[Soi Sauce]

Foriegners! The new Jews.

And operating in areas Thais cannot compete in?

Isn't that all areas?

When you think all the low's have been set, you come along and set a new record

How?

Look at Phuket taxis and the US navy? Then add what's happening here.

Edited February 4, 2013 by Soi Sauce

[Thai at Heart]

You can have 49%, but don't dare pull a pint or do the booze run.

That's the way the are. You can be general manager, get a work permit, but don't be general dogsbody.

You mean be a general manager Thai style? sit on the comfy chair with legs up on the table and do nothing all day

Yeah, just by doing the minimum and giving some service you make the local gm's feel lazy.

[monkeycountry]

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.

They do not seem to have a problem letting illegal Thai businesses operate though, even if the only thai that benefits is the illegal operator (and the person he/she bribes), Take Phuket taxis as an example, but you can add pretty much all street vendors and small thai restaurants and other small businesses to the mix.

[Robby nz]

Aren't Chon Buri and Prachab areas that are held by opposition parties?

Must be the doing of the dirty, cheating, thieving, lieing Dems again.

But hang on isnt it the De beauty minister who is facing all the charges?

[Ricardo]

In the good old days, you just changed the law to permit a higher proportion of an industry to be foreign-owned, a day or two before you flogged it off to Singapore !

Now you encourage foreign-investment and Thai efficiency-gains by having a crack-down instead !

Yay for ASEAN & Thai-competitiveness & Red-Commerce !

[kevvy]

to be elected to the government you have to know and pass the spelling pronunciation of two words

CRACKDOWN

CORRUPTION

[newermonkey]

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

Why feel sorry? I feel quite smug, let them find out the hard way to "how not to run a developing country".

[TackyToo]

Are these already preparations for ASEAN?

[Tatsujin]

So, is this the start of a wider crackdown and investigation or just a simple localized shakedown?

[belg]

tell me honestly, what is it with this deal that a farang that pays all taxes, business and social, cannot even own 100% of his own company

they don't think this is a major contributor of farangs NOT INVESTING in this country where you don't even have legal control over your own company

we already cannot own the land your business building or private house is standing on

as if we could steal the country by bringing with out when they kick us out ?

[Suffinator]

Not yet ready to compete with Foreigners? Is this guy serious? Thailand will never be ready. With almost no education and with even less common sense, how on earth can a Thai compete with foreigners. I write for meebal, as a few people know, and the amount of readers who ask me if I'm full of it is commonplace as they feel I must be making this up as no one can be that stupid. I do point out that a quick trip and stay in Thailand for a week will bring a crashing wave of realism to what is written about the Thais on the internet.

[Thai at Heart]

A work permit has to be backed by 4 Thai employees, so by definition, there is a minimum gain by having foreigners.

beyond that, causing damage by participating in industries in which Thailand isn't ready to compete. Does this mean that all the Thai companies are loss making, and only the foreigners profitable?

[h90]

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 ??

There a lot top companies in Thailand......but you can discuss if they are Thai....The owners are Thai nationals, but ethnic Chinese.

[SICHONSTEVE]

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

Yes, just like their other so called populist policies such as the minimum 300 baht wage and the rice pledging scheme, Thai's will lose out every time, some how, some way, whether it means losing their job because companies move to another country, down size or whatever.

. The rice pledging fiasco is not only bankrupting Thailand but many mills are now are setting up operations in neighbouring countries due to the increased labour costs and high priced rice Thai rice. The result?? more lost Thai jobs and investment!!!

Just why can't they see the 'bigger picture' for once and look at the overall implications of what they are doing and not reacting to a few uneducated upset Thai's taking the law into their own hands as they cannot accept competition - not realising that US farangs are supplying so many of THEIR jobs (well at the moment that is)!!!!

[Thai at Heart]

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 ??

There a lot top companies in Thailand......but you can discuss if they are Thai....The owners are Thai nationals, but ethnic Chinese.

But for some bizarre reason, the whole country seems to believe that they put the interests of Thailand before the interests of their own pockets.

[Travelman868]

Why would ANYONE in their right mind, provide the money and knowhow to start a business and hand control to someone else.

As a Farang I would even have to give control of the bank account to a Thai person. Now I'm not suggesting that I would automatically

be ripped off but !!!!!

It's just a non starter

As for the rules on land, I don't have a problem there. Even in Europe problems are caused when lots of foreigners move in and buy up

holiday homes. Spain is a good example. A few years ago it was possible to buy a villa for £25000 then everyone jumped on that

wagon and the prices went up to £100000. This stoppped the locals from buying in their own country. Now prices are back to £50000

Cyprus proberbly has the best system, they have land that is set aside for foreigners and the rest is for locals. Prices for locals are reasonable as are the taxes. Foreigners pay far more and also pay more tax.

[PhilipCook]

If you don't obey the laws you will suffer the consequences. Even though laws are randomly enforced doesn't make your decision to break the law any less risky. I would love to own land here right now, but I will wait until I have been granted Thai citizenship to buy any.

[15Peter20]

In a land where the application of the law is widely understood to be patchy, it is hilarious to find foreigners going on incessantly about Thaksin not being brought to justice for something a hundred other politicians could be charged with, but aren't, and then bleating about ulterior motives when some other foreigners have been found to be breaking the law.

The moral high-horses are heading for the hills, it seems.

Edited February 5, 2013 by 15Peter20

[Felt 35]

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

...hmm......and in Phuket none......well okay ....silence that one....its a great high season

[HUAHIN62]

For all the critics, when last have you tried as a foreigner (person from a developing country) to open a business in Europe, Russia or the US. Or as a non European or American to get visas for your countries. My last Schengen visa application ended up in a 50 page application and 3 trips to the embassy. Why should Thailand open their doors to everyone but these other countries keep their doors tightly shut for outsiders. Bloomberg rated Thailand 3rd in the world for business investment which included criteria such as ease of starting a business for foreigners. If you play by the rules (which is much less here than in Europe, US or Russia) there is no problem. If you find Thailand too difficult to business in return home or stop whinning and get on with life.

[Arkady]

Are these large or small companies?

We can assume that the tailor shop was quite a small business.

[Thai at Heart]

Are these large or small companies?

We can assume that the tailor shop was quite a small business.

I wonder what nationality the so called person breaking the rules was. Can't be that they shut down a Thai Indian tailors shop can it? If so, is there a roaring trade in people from Saville Row masquerading in the islands? You reckon the Russians want a Russian designed suit? Would anyone?

Edited February 5, 2013 by Thai at Heart

[Arkady]

For all the critics, when last have you tried as a foreigner (person from a developing country) to open a business in Europe, Russia or the US. Or as a non European or American to get visas for your countries. My last Schengen visa application ended up in a 50 page application and 3 trips to the embassy. Why should Thailand open their doors to everyone but these other countries keep their doors tightly shut for outsiders. Bloomberg rated Thailand 3rd in the world for business investment which included criteria such as ease of starting a business for foreigners. If you play by the rules (which is much less here than in Europe, US or Russia) there is no problem. If you find Thailand too difficult to business in return home or stop whinning and get on with life.

This is not about getting visas. It is about foreign ownership of businesses. As a foreigner you are free to own 100% of virtually all types of business in Europe, the US, Australia etc.

Thailand is worried about the AEC agreement which will force them to allow ASEAN companies, even foreign owned companies registered in ASEAN countries, to own 70% of companies operating in the Thai service sector. This is the swan song and the last chance for the Luddites in the Commerce Ministry to show off their power and do a spot of grandstanding. In future they will just be able to go after the 30% owned by Thais. Then they will reap the seeds they have sown since the early 70s when the first Foreign Business Act and Working of Aliens Act came into force and encouraged uncompetitive Chinese owned businesses to rip off Thai consumer and rent seeking activity by Thai jv partners.

Edited February 5, 2013 by Arkady

[Thai at Heart]

For all the critics, when last have you tried as a foreigner (person from a developing country) to open a business in Europe, Russia or the US. Or as a non European or American to get visas for your countries. My last Schengen visa application ended up in a 50 page application and 3 trips to the embassy. Why should Thailand open their doors to everyone but these other countries keep their doors tightly shut for outsiders. Bloomberg rated Thailand 3rd in the world for business investment which included criteria such as ease of starting a business for foreigners. If you play by the rules (which is much less here than in Europe, US or Russia) there is no problem. If you find Thailand too difficult to business in return home or stop whinning and get on with life.

This is not about getting visas. It is about foreign ownership of businesses. As a foreigner you are free to own 100% of virtually all types of business in Europe, the US, Australia etc.

Thailand is worried about the AEC agreement which will force them to allow ASEAN companies, even foreign owned companies registered in ASEAN countries, to own 70% of companies operating in the Thai service sector. This is the swan song and the last change for the Luddites in the Commerce Ministry to show off their power and do a spot of grandstanding. In future they will just be able to go after the 30% owned by Thais. Then they will reap the seeds they have sown since the early 70s when the first Foreign Business Act and Working of Aliens Act came into force and encouraged uncompetitive Chinese owned businesses to rip off Thai consumer and rent seeking activity by Thai jv partners.

And that ladies and gentleman, is the way it is......

[aechzen]

wait when they check out kaosan road and sukumvit !!! of farang firms