Phuket To Crackdown On Businesses Using Nominee Shareholders

[webfact]

Phuket to crackdown on businesses using nominee shareholders

Phuket Gazette

Phuket Governor Maitri Inthusut (center) explains that the teams will be encouraging locals to report any information that might lead to identifying companies with foreign owners that are breaking laws in The Kingdom. Photo: Kritsada Mueanhawong

PHUKET: -- An inspection team from Bangkok will be arriving in Phuket to help local officers investigate businesses with foreign owners that are suspected of using nominee shareholders, Phuket Governor Maitri Inthusut announced at a meeting this afternoon.

About 3,700 “foreign-owned” business are registered in Phuket, explained Department of Business Development Phuket Office chief Nimit Kangkajit at the meeting.

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“Of course Thais will hold at least 51 per cent of the shares of any business and foreigners will be limited to only holding 49 per cent of the shares,” Mr Nimit said. “However, we will be sending out teams to check on the issue of Thai nominees being used.”

In addition to any businesses suspected of being run with the help of Thai nominees, investigations will be launched into all businesses with foreign owners across the island engaging in professions reserved for Thais only, Governor Maitri explained.

“I have ordered that three teams, each headed by a Phuket vice governor and comprising officers from a variety of relevant departments inspect ‘foreign-owned’ businesses in all three Phuket districts: Muang, Kathu and Thalang,” Governor Maitri said.

These businesses will be examined to establish whether or not they are engaging in any of the work reserved for Thais only, explained Phuket Provincial Employment Office (PPEO) chief Yawapa Pibulpol.

“Activities we are especially concerned about are guiding services, laundry services and tour van operations, as well as timeshares sales,” Mr Yawapa said.

Already during the recent crackdown, instigated by a taxi mob in Bang Tao on January 28 (story here), five companies with foreign owners were found breaching regulations and were fined, Mr Yawapa added.

Governor Maitri also explained that the teams will be encouraging locals to report any information that might lead to identifying companies with foreign owners that are breaking laws in The Kingdom.

Source: http://www.phuketgaz...ders-20137.html

-- Phuket Gazette 2013-02-05

[lemoncake]

I am glad they finally figured out the ONLY reason for all the problems in Phuket

Its the foreigners with nominees, all else is irrelevant, and in order of urgency, first need to throw out the foreigners, followed by more foreigners and after that Phuket will no longer have any problems

[steelepulse]

How long has it been since the last crackdown on Thai nominees for foreign businesses? Has it been a year already?

[jocko]

I am glad they finally figured out the ONLY reason for all the problems in Phuket

Its the foreigners with nominees, all else is irrelevant, and in order of urgency, first need to throw out the foreigners, followed by more foreigners and after that Phuket will no longer have any problems

I wonder how many good businesses would be here without the troublemaking foreigners .

[Artamus]

Evidently the buzzword for 2013 is "crackdown".

Lost count of how many crackdowns there's been this year, and we're only in Feb.

Edited February 5, 2013 by Artamus

[asdecas]

Great Scott, only Tuesday and already three crackdowns this week! Are the police rushing to the scenes? Is Police Captain Chalerm on the cases?

[Bluedan]

If they crack down on foreign businesses with nominee shareholders, there will be almost no foreigners left here to do business and all of the businesses employed by them such as accounting firms ( who usually supply the nominee shareholders) will also go under.

[nakhonandy]

If they crack down on foreign businesses with nominee shareholders, there will be almost no foreigners left here to do business and all of the businesses employed by them such as accounting firms ( who usually supply the nominee shareholders) will also go under.

I agree entirely. My wife is a shareholder and then the rest from the accounting firm.

If we can not do this, why would we invest here?

Is this "crackdown" only Phuket or will it spread wider?

I don't know anybody that operates a restricted Thai only business (guiding services, laundry services and tour van operations, as well as timeshares sales).

Not much money in these.

[simple1]

Just how many farangs will be availing themselves to take out their competition / other farangs they are having disputes with the statement "encouraging locals to report any information that might lead to identifying companies with foreign owners"

[stevehaigh]

anyone want to buy my mobile tour guide and timeshare sales service van? it also has a washing machine in the back.

Edited February 5, 2013 by stevehaigh

[madmitch]

What's the betting that Russian "owned" companies will be first on the list?

And, as Steelepulse says, it is a fairly short time ago that the last crackdown of this nature took place, or was reported to be taking place anyway.

And Stevehaigh, please PM me with details of your van. Sound a great business concept. I would possibly convert it to add a Russian massage parlour.

[Tatsujin]

Just how many farangs will be availing themselves to take out their competition / other farangs they are having disputes with the statement "encouraging locals to report any information that might lead to identifying companies with foreign owners"

mmmmm . . . heads off to find the phone number for the "report" line . . .

[Suffinator]

Can anyone explain to me why any foreigner would invest in business or property that they cannot legally own? Maybe it's just me but I cannot see the sense in giving the Thais the opportunity to rape foreigners financially.

[Udox]

How about locals reporting lazy arsed policemen for also breaking laws and in addition not upholding the laws they as are paid to do.

Instead we witness police standing by watching while the taxi mafia cause willful damage on a legitimate Phuket business and then state that "the taxi drivers were angry and they have a right to be angry"

If that isn't support for criminals - what is?

[yummypizza]

Crack down usually costs business owners money in an unlawful way, here we go again! phew..

[stevenl]

I have not seen any timeshare touts in the area for about a week now.

[NomadJoe]

“Of course Thais will hold at least 51 per cent of the shares of any business and foreigners will be limited to only holding 49 per cent of the shares,” Mr Nimit said.

Not entirely true. Americans can own 100% of a company in Thailand.

http://www.siam-legal.com/Business-in-Thailand/US-Thai%20Amity.php

[NomadJoe]

I have not seen any timeshare touts in the area for about a week now.

The new one in Kata got raided last week.

[Dukeleto]

“Of course Thais will hold at least 51 per cent of the shares of any business and foreigners will be limited to only holding 49 per cent of the shares,” Mr Nimit said.

Not entirely true. Americans can own 100% of a company in Thailand.

http://www.siam-lega...-Thai Amity.php

I keep hearing this urban legend but I am yet to meet or hear of any American who has actually accomplished this amazing feat! Any business names you care to mention who are 100% owned by an American in Thailand? Perhaps this should be a chellenge for Myth Busters.

[AdmiralKen]

Crack down usually costs business owners money in an unlawful way, here we go again! phew..

Close, dont you mean PHEW - KET

[LivinginKata]

I have not seen any timeshare touts in the area for about a week now.

The new one in Kata got raided last week.

Absolute still have plenty OPCs working in the Kata and Patong areas.

[LivinginKata]

“Of course Thais will hold at least 51 per cent of the shares of any business and foreigners will be limited to only holding 49 per cent of the shares,” Mr Nimit said.

Not entirely true. Americans can own 100% of a company in Thailand.

http://www.siam-lega...-Thai Amity.php

I keep hearing this urban legend but I am yet to meet or hear of any American who has actually accomplished this amazing feat! Any business names you care to mention who are 100% owned by an American in Thailand? Perhaps this should be a chellenge for Myth Busters.

I have met quite a few 100% owners of a Thai company, but I ain't going to name them here.

[Dukeleto]

“Of course Thais will hold at least 51 per cent of the shares of any business and foreigners will be limited to only holding 49 per cent of the shares,” Mr Nimit said.

Not entirely true. Americans can own 100% of a company in Thailand.

http://www.siam-lega...-Thai Amity.php

I keep hearing this urban legend but I am yet to meet or hear of any American who has actually accomplished this amazing feat! Any business names you care to mention who are 100% owned by an American in Thailand? Perhaps this should be a chellenge for Myth Busters.

I have met quite a few 100% owners of a Thai company, but I ain't going to name them here.

Thus it remains an urban legend.

[yummypizza]

“Of course Thais will hold at least 51 per cent of the shares of any business and foreigners will be limited to only holding 49 per cent of the shares,” Mr Nimit said.

Not entirely true. Americans can own 100% of a company in Thailand.

http://www.siam-lega...-Thai Amity.php

I keep hearing this urban legend but I am yet to meet or hear of any American who has actually accomplished this amazing feat! Any business names you care to mention who are 100% owned by an American in Thailand? Perhaps this should be a chellenge for Myth Busters.

I have met quite a few 100% owners of a Thai company, but I ain't going to name them here.

If all legit,why cannot mention??

[dasy]

If they crack down on foreign businesses with nominee shareholders, there will be almost no foreigners left here to do business and all of the businesses employed by them such as accounting firms ( who usually supply the nominee shareholders) will also go under.

I agree entirely. My wife is a shareholder and then the rest from the accounting firm.

If we can not do this, why would we invest here?

Is this "crackdown" only Phuket or will it spread wider?

I don't know anybody that operates a restricted Thai only business (guiding services, laundry services and tour van operations, as well as timeshares sales).

Not much money in these.

Not sure if you are aware or if you would like to change but you do not need "the rest" any more your wife can be your only other shareholder (off course for 51%)

[stevenl]

I have not seen any timeshare touts in the area for about a week now.

The new one in Kata got raided last week.

Excellent.

[IrishIvan]

There might be a few nervous house owners that have bought a house in a company name thinking they are safe

[hgma]

To me its a disturbing trend, hence calling for ordinary Thai citizens to report foreigners doing business without a proper licence is nail-biting.

remember this is a direct result of an spontane demonstration where Russian fellow foreigners were targeted.

I like to live under the rule of the law,not under the rule of xenophobian mobs.

Lets hope something positive comes out of these cracks in the mirror of law.

[Nip]

Fear not brothers I would hazard a guess, and one must here on Thaivisa that almost every Honorary Consul in Phuket is involved in a tourist related business with companies set up in a similar manner ie with nominee shareholders... Well why else would they (supposedly) work for free ??? I for one would love to avail of the freedom of information act to have a butchers at all the foreign Department of Foreign Affairs accounts with special reference to entertainment, travel and staff expenses... There is one Consular website that openly promotes a villa sales and rental site owned by the Honorary Consul...

[Arkady]

"In addition to any businesses suspected of being run with the help of Thai nominees, investigations will be launched into all businesses with foreign owners across the island engaging in professions reserved for Thais only, Governor Maitri explained."

This statement is rather confused. The list of reserved occupations is an annex to the Working of Aliens Act that deals only with what foreign individuals can't do. Sectors prohibited to foreign owned companies are listed in the annexes of the Foreign Business Act and include all service businesses. Thus a Thai company with minority foreign shareholders is still Thai and is permited to engage in all sectors of the economy. What he was trying to say but the reported didn't understand was that, if a company is found to be in fact a foreign owned company through Thai nominees, the foreign owners and the Thai nominees can be prosecuted for engaging in a sector prohibited to foreigners which is virtually all sectors apart from manufacturing for 100% export or domestic retail with an investment of over B30 million. Even if they are in the permitted sectors, they can be prosecuted under the FBA for failing to obtain an alien business licence. On the other hand a company 49% owned by foreigners and 51% owned by Thais who are genuine investors is allowed to engage in all sectors including property development, tour guiding, taxi businesses etc.