LivinginKata Posted February 5, 2013 Share Posted February 5, 2013 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%) Maybe true in a partnership, but for a Thai company there needs to be at least 3 shareholders, as far as I know. Link to comment Share on other sites More sharing options...
Bung Posted February 5, 2013 Share Posted February 5, 2013 I would think they may be better off cleaning up their own back yard first...... Link to comment Share on other sites More sharing options...
Arkady Posted February 5, 2013 Share Posted February 5, 2013 (edited) 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%) Maybe true in a partnership, but for a Thai company there needs to be at least 3 shareholders, as far as I know. There are a lot of multinationals who use Thai nominees too. They may have fancy non-voting share schemes set up by lawyers but, if you scratch the surface, they are also illegal. The truth of the matter is that no one wants to invest in a business with local joint venture partners owning and controlling the business. Thai businessmen certainly have no interest in that type of business when they go overseas. Is your Thai wife a legitimate nominee, even if she can't show that she had her own money to invest in the business? Edited February 5, 2013 by Arkady Link to comment Share on other sites More sharing options...
Beetlejuice Posted February 5, 2013 Share Posted February 5, 2013 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 You can place 100% of the blame on those who are abusing the system and bending the laws. As I have explained many times, the actions of others put all of us under greater scrutiny by the authorities, with enforcements and tightening up of the rules that affects all foreigners living here. 1 Link to comment Share on other sites More sharing options...
Bluedan Posted February 5, 2013 Share Posted February 5, 2013 The idea is to make business almost impossible on paper...who in their right mind would have 51 % of their business actually owned by Thai investors. But it's all made possible by accountants lawyers and officials and this is a huge sector of the economy. Of course the officials need to beat their chests and threaten a crackdown every now and then, but they are the same people who benefit from the "bending of the rules" and a genuine crackdown would have them and their cronies losing millions in kickbacks. 2 Link to comment Share on other sites More sharing options...
blackthorn2005 Posted February 5, 2013 Share Posted February 5, 2013 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. You got it in one. Link to comment Share on other sites More sharing options...
annabel Posted February 5, 2013 Share Posted February 5, 2013 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... And in Chiang Mai also !! Link to comment Share on other sites More sharing options...
DefaultName Posted February 5, 2013 Share Posted February 5, 2013 There might be a few nervous house owners that have bought a house in a company name thinking they are safe That was my first thought too. It was always a dodgy way to buy a house. Link to comment Share on other sites More sharing options...
taninthai Posted February 6, 2013 Share Posted February 6, 2013 The tuk tuk and jet skis have been beating and extorting money from tourist for years and nothing has been done ,yet a thai sets up a business employi g ferang and these tuk tuk kick up such a fuss they manage to bring a team down from Bangkok within a week to investigate all foreign businesses ...amazing Thailand for sure the Thais are really starting to show their colours over there now. Link to comment Share on other sites More sharing options...
Arkady Posted February 6, 2013 Share Posted February 6, 2013 The idea is to make business almost impossible on paper...who in their right mind would have 51 % of their business actually owned by Thai investors. But it's all made possible by accountants lawyers and officials and this is a huge sector of the economy. Of course the officials need to beat their chests and threaten a crackdown every now and then, but they are the same people who benefit from the "bending of the rules" and a genuine crackdown would have them and their cronies losing millions in kickbacks. The answer to your question is - Thai investors. They sure that they own at least 51% of their businesses when they go abroad. Link to comment Share on other sites More sharing options...
dasy Posted February 6, 2013 Share Posted February 6, 2013 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%) Maybe true in a partnership, but for a Thai company there needs to be at least 3 shareholders, as far as I know. Sorry yes you are absolutely right 3 shareholders in total but could be two foreigners and 1 Thai. Link to comment Share on other sites More sharing options...
NamKangMan Posted February 6, 2013 Share Posted February 6, 2013 @ dasy What would be the point of having two foreigners owning 49%? You may as well just own the 49% yourself - no need for another partner for the 49% ownership - either way, the Thai holders of the 51% outvote you. It would be beneficial to have two or more unconnected Thai's comprising the 51% of ownership, of YOUR company, and hope they never conspire against you. Link to comment Share on other sites More sharing options...
Bluedan Posted February 6, 2013 Share Posted February 6, 2013 @ dasy What would be the point of having two foreigners owning 49%? You may as well just own the 49% yourself - no need for another partner for the 49% ownership - either way, the Thai holders of the 51% outvote you. It would be beneficial to have two or more unconnected Thai's comprising the 51% of ownership, of YOUR company, and hope they never conspire against you. Normally it is set up so that the 49 percent are preferential shares and the 51 ordinary shares of a lower class. There are often other protections such as the Thai shareholders have already signed forms resigning as shareholders as an insurance. This is what I mean, they make it illegal but absolutely possible. It's the same for owning land, and not only is doing so with a similar Thai company illegal, but also by way of a long term lease to circumvent the law against foreign ownership. Of course illegal but openly marketed and sold in this way. It all makes the wheels go around and the same people who threaten crackdowns are driving Porsches etc as a result. 1 Link to comment Share on other sites More sharing options...
steelepulse Posted February 6, 2013 Share Posted February 6, 2013 >>Of course the officials need to beat their chests and threaten a crackdown every now and then, but they are the same people who benefit from the "bending of the rules" and a genuine crackdown would have them and their cronies losing millions in kickbacks. Correct, so that is why in the last decade plus of crackdowns just like this, there's a lof of posturing, then nothing happens. BTW, just talking to friend that had the bad luck to be renewing his work visa this week and getting an extension, tea money has increased significantly.. Link to comment Share on other sites More sharing options...
Valentine Posted February 6, 2013 Share Posted February 6, 2013 >>Of course the officials need to beat their chests and threaten a crackdown every now and then, but they are the same people who benefit from the "bending of the rules" and a genuine crackdown would have them and their cronies losing millions in kickbacks. Correct, so that is why in the last decade plus of crackdowns just like this, there's a lof of posturing, then nothing happens. BTW, just talking to friend that had the bad luck to be renewing his work visa this week and getting an extension, tea money has increased significantly.. He must be paying someone to do it. Link to comment Share on other sites More sharing options...
PoodMaiDai Posted February 6, 2013 Share Posted February 6, 2013 Thai politicians couldn't crackdown on a paper bag if their life depended on it. One useless meeting and press release after another. If they only knew how ridiculous they look to anyone with an IQ higher than an Ape. Link to comment Share on other sites More sharing options...
zaZa9 Posted February 6, 2013 Share Posted February 6, 2013 I live on a beach about 7kms south. The way I heard it , the agent IS LICENSED and IS THAI. He has presented his paperwork and it has been oked. If it wasnt , he would be prosecuted , as per the law. After confuring with the 'authorities' ( no not the taxi men, tho one might assume thats who I meant) , he chose to fold his business , for safety reasons. Make no mistake. The 'locals' , many of whom have moved here in the last 5 years from other parts of Thailand , are the power here, backed by the lords to whom they pay 'tribute'. Their commonality is the vehicles they choose to drive... Link to comment Share on other sites More sharing options...
hansgruber Posted February 7, 2013 Share Posted February 7, 2013 I live on a beach about 7kms south.The way I heard it , the agent IS LICENSED and IS THAI. He has presented his paperwork and it has been oked. If it wasnt , he would be prosecuted , as per the law. After confuring with the 'authorities' ( no not the taxi men, tho one might assume thats who I meant) , he chose to fold his business , for safety reasons. Make no mistake. The 'locals' , many of whom have moved here in the last 5 years from other parts of Thailand , are the power here, backed by the lords to whom they pay 'tribute'. Their commonality is the vehicles they choose to drive... Toyota Fortuna? Link to comment Share on other sites More sharing options...
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