Dbd Investigates Thai Firms Suspected Of Helping Foreigners Set Up Companies Illegally

[Lite Beer]

DBD investigates Thai firms suspected of helping foreigners set up companies illegally

Phuket Gazette -

Phuket DBD chief Nimitra Mangkajit (left) discussed the issue of Thai nominees with Phuket Governor Maitri Insuthi (right) and DBD Director Wutthichai Wipusanawit yesterday. Photo: Kritsada Mueanhawong

newsjsPHUKET: A special investigation by the Department of Business Development (DBD) into foreign-owned businesses in Phuket has revealed links to Thai legal and accounting firms on the island that may be helping companies set themselves up illegally in Thailand.

“We suspect that these firms may be allowing foreigners wanting to open a business to use their company address to represent the physical building of the foreigners’ business. We are also investigating whether or not the legal and accounting firms are offering their staffers’ names as nominee shareholders,” DBD Director Wutthichai Wipusanawit said in a meeting at Provincial Hall yesterday.

However, DBD Phuket office chief Nimitra Mangkajit explained to the Phuket Gazette that at this point the DBD is unable to establish any wrongdoing on the part of the companies under investigation.

“Right now, we are just conducting a thorough examination of the companies,” he said.

In addition to companies being targeted in Phuket, the special investigation team will be targeting companies in four other provinces across Thailand: Chon Buri, Prachuap Khiri Khan, Surat Thani and Krabi, Director Wutthichai said.

Source: http://www.phuketgaz...ally-20286.html

-- Phuket Gazette 2013-02-19

[LivinginKata]

This is nothing new. Been going on for the last decade and more.

[manarak]

I think their big problem is to apply the same Law to everybody.

How to eject the Farangs without jeopardizing the Japanese and Chinese billions...

[Gulfsailor]

I think their big problem is to apply the same Law to everybody.

How to eject the Farangs without jeopardizing the Japanese and Chinese billions...

I don't think the Chinese and Japanese billions are tied to companies setup by somchai at the local 'law'firm, with somchai's brother being their nominee shareholder... Under BOI rules foreigners can own 100%, but then the company should actually add something to the country, that Thais generally can't do themselves.

[JetsetBkk]

"...links to Thai legal and accounting firms on the island that may be helping companies set themselves up illegally"

I am deeply shocked.

[Beetlejuice]

I think their big problem is to apply the same Law to everybody.

How to eject the Farangs without jeopardizing the Japanese and Chinese billions...

I don't think the Chinese and Japanese billions are tied to companies setup by somchai at the local 'law'firm, with somchai's brother being their nominee shareholder... Under BOI rules foreigners can own 100%, but then the company should actually add something to the country, that Thais generally can't do themselves.

Spot on.

The backroom boys company owners that use Thais to front their businesses are those that are unable to establish a company in Thailand under the requirements of the BOI or the foreigner company ownership and employment laws. In other words, they are not welcome or wanted in Thailand, yet they continue to sneak in and trade behind Thai names and associates.

These illegal practices are common nationwide, from the smallest up some of the larger companies where these outfits are financed by foreigners and doing quite well from they’re ill gotten gains. Many are using Thai managers and are not even in the country, others are working behind the scenes in order to be able to support their stay in Thailand.

As one poster has already mentioned, this is nothing recent, the illegally owned company traders have been in operation for many years and is on the increase as more and more plonk themselves here abusing the system and breaking the laws. Some are quite open about it, believing no one cares or will notice.

[webfact]

Probe into Phuket's 'foreign' firms begins

Tanyaluk Sakoot

PHUKET: -- Dozens of government officials will be involved in tracking down illegally formed or run companies with foreign shareholders, following a meeting yesterday (February 18) at Phuket Provincial Hall.

Gov Maitree: ‘A good way to address local people’s complaints about their business rights being damaged.’

The meeting was chaired by Phuket Governor Maitree Intusut, and included Vice Governor Somkiat Sangkhaosutthirak, Provincial Employment Office chief Yaowapa Pibulpol, Business Development Office chief Nimit Mungkajit and many others.

The meeting heard that orders have been received from the Ministry of Commerce’s Department of Business Development to check all businesses with foreign shareholders in tourism provinces, including Chonburi, Prachuap Khiri Khan, Surat Thani, Krabi and Phuket, to see whether Thai shareholders are illegal nominees.

Mr Nimit said, “We have already discovered cases involving a total of 82 companies, where multiple businesses were registered at the same addresses – the addresses of a number of law companies.

“Between today (February 18) and Wednesday the team will check basic information on these businesses, such as accounts, company history and location.”

There are about 3,000 tourism- and property-related businesses in Phuket, he said, and officials will initially concentrate on these. “If the officers find that a company is formed illegally, legal action will be taken. But first a thorough check of all information must be carried out.”

Gov Maitree said, “Checking individual businesses is a good way to address local people’s complaints about their business rights being damaged. All relevant officers must work to solve this problem.

“Each of the three districts [Muang, Kathu and Thalang] will have a team that will include the district officer, a vice governor, Tourism Association representatives, and officials from the Tour Guides Association and the Excise Department,” he said.

Source: http://www.thephuket...egins-37215.php

-- The Phuket News 2013-02-20

[lemoncake]

Well doh, of course law and accounting firms use their staff as nominees, and of course law and accounting firms help.

It's the only way, but surprise surprise they can not find any evidence.

Here is a thought , visit 1 office and see how many shares in how many company's staff own

[lemoncake]

And the crack down begins.

They have no problem with illegal Thai operated business, Thai run scams and extortion.

So I guess all the problems in Phuket are a result of foreigners.

After all it is the dead foreigner fault for being killed, because if he/she not come, he/she would not be killed

[taninthai]

If they were actually serious about this I would be pretty worried if I had a house on a company name.

[belg]

aren't they called law firms ? loooooooooool

[Renbe]

Obviously, as in any other country, when too many people are abusing the system, eventually the system will fight back. All too many foreigners flock to Thailand, often with illegally obtained money, and think that anything goes in Thailand. The fact that some Thai are willing and able to "help" these foreigners, does not make the actions of those foreigners any better.

Edited February 20, 2013 by Renbe

[Tanaka]

If they were actually serious about this I would be pretty worried if I had a house on a company name.

But, but, but the european estate broker assured that this was the normal way for foreigner to buy house and land in Thailand! He said it was not illegal as he has been doing this for many years. So then it must be ok. Right? We bought our house and land in an estate in Hua Hin 3 years ago and although we have not yet received the chanot on the land, the broker assures that it takes time at the land office.

[KarenBravo]

Just another manifestation of Thai xenophobia and anti-competition attitudes.

[taninthai]

^

lol.............,,I wouldn't worry about the chanote as you don't actually own the house or land the chanote will not have your name on it anyway.

[stevenl]

If they were actually serious about this I would be pretty worried if I had a house on a company name.

I would only be worries if you were Russian and had a house on a company name.

[LivinginKata]

But, but, but the european estate broker assured that this was the normal way for foreigner to buy house and land in Thailand! He said it was not illegal as he has been doing this for many years. So then it must be ok. Right? We bought our house and land in an estate in Hua Hin 3 years ago and although we have not yet received the chanot on the land, the broker assures that it takes time at the land office.

If it was an 'above board' transaction the updated Chanote would be issued while you wait at the land office. 3 years later - Houston, we have a problem.

[NanLaew]

Quick question: is being a boilerman permitted in Thailand or is that on the list of 'protected' occupations?

[cambtek]

I am shocked at the blatant disregard that sneaky foreigners have for Thai laws.Of course the Thai have the right to protect their businesses from competition, its called a closed shop I think.

Of course the Thai can go to other countries and set up whatever business they want,seems very fair.However isnt 2015 the year that ASEAN opens up to free and fair business practices?

I cant wait to see the Cambodian tuk tuk mafia arrive in Phuket, these guys are hard nuts and make the Thai look like pussies.

[robert888d]

Most THAI people want foreigners to come to Thailand spend a load of money and then b....r off .

[KarenBravo]

I am shocked at the blatant disregard that sneaky foreigners have for Thai laws.Of course the Thai have the right to protect their businesses from competition, its called a closed shop I think.

Of course the Thai can go to other countries and set up whatever business they want,seems very fair.However isnt 2015 the year that ASEAN opens up to free and fair business practices?

I cant wait to see the Cambodian tuk tuk mafia arrive in Phuket, these guys are hard nuts and make the Thai look like pussies.

Seems to be a lot of ignorance about how ASEAN 2015 will impact Thailand.

The only professions that will be open to other ASEAN nationals in Thailand will be:-

Medicine.

Dentistry.

Nursing.

Engineering.

Architecture.

Natural resources.

Geographical exploration.

Accounting.

[lemoncake]

I am shocked at the blatant disregard that sneaky foreigners have for Thai laws.Of course the Thai have the right to protect their businesses from competition, its called a closed shop I think.

Of course the Thai can go to other countries and set up whatever business they want,seems very fair.However isnt 2015 the year that ASEAN opens up to free and fair business practices?

I cant wait to see the Cambodian tuk tuk mafia arrive in Phuket, these guys are hard nuts and make the Thai look like pussies.

Seems to be a lot of ignorance about how ASEAN 2015 will impact Thailand.

The only professions that will be open to other ASEAN nationals in Thailand will be:-

Medicine.

Dentistry.

Nursing.

Engineering.

Architecture.

Natural resources.

Geographical exploration.

Accounting.

I believe that has been updated already to include another dozen or so

[khaowong1]

This is nothing new. Been going on for the last decade and more.

or more... I remember when Phuket kind of started up. back in the late 70's and early 80's. I had a lot of Thai friends wanting to help me start some kind of business there..

Now most of those Thai friends are wealthy and have a lot of political influence in the area. I'm talking shady deeds and the whole nine yards..

Edited February 20, 2013 by khaowong1

[JetsetBkk]

I am shocked at the blatant disregard that sneaky foreigners have for Thai laws.Of course the Thai have the right to protect their businesses from competition, its called a closed shop I think.

Of course the Thai can go to other countries and set up whatever business they want,seems very fair.However isnt 2015 the year that ASEAN opens up to free and fair business practices?

I cant wait to see the Cambodian tuk tuk mafia arrive in Phuket, these guys are hard nuts and make the Thai look like pussies.

Seems to be a lot of ignorance about how ASEAN 2015 will impact Thailand.

The only professions that will be open to other ASEAN nationals in Thailand will be:-

Medicine.

Dentistry.

Nursing.

Engineering.

Architecture.

Natural resources.

Geographical exploration.

Accounting.

I believe that has been updated already to include another dozen or so

I'm really looking forward to visiting my new Laotian dentist.

.

[manarak]

I think their big problem is to apply the same Law to everybody.

How to eject the Farangs without jeopardizing the Japanese and Chinese billions...

I don't think the Chinese and Japanese billions are tied to companies setup by somchai at the local 'law'firm, with somchai's brother being their nominee shareholder... Under BOI rules foreigners can own 100%, but then the company should actually add something to the country, that Thais generally can't do themselves.

Spot on.

The backroom boys company owners that use Thais to front their businesses are those that are unable to establish a company in Thailand under the requirements of the BOI or the foreigner company ownership and employment laws. In other words, they are not welcome or wanted in Thailand, yet they continue to sneak in and trade behind Thai names and associates.

These illegal practices are common nationwide, from the smallest up some of the larger companies where these outfits are financed by foreigners and doing quite well from they’re ill gotten gains. Many are using Thai managers and are not even in the country, others are working behind the scenes in order to be able to support their stay in Thailand.

As one poster has already mentioned, this is nothing recent, the illegally owned company traders have been in operation for many years and is on the increase as more and more plonk themselves here abusing the system and breaking the laws. Some are quite open about it, believing no one cares or will notice.

Actually: the BOI does not promote activities that include "making money" in Thailand. I simplified a bit, but after meeting the BOI for one of my technology projects, this is what transpired.

For example, the BOI will promote making software, but only for export.

It does promote manufacturing, but only for export.

Anything produced by a BOI promoted company should not be used to make money inside Thailand.

Yet the big Chinese and Japanese companies sell their products in Thailand.

The Toyota Fortuner was even developed specially for the Thai market.

Does anybody here seriously believe Toyota forfeited 51% of Toyota Motor Thailand to Thai shareholders?

Everybody uses the same nominee/preferred shares mechanism - the difference is in the amount of digits at the bottom of the balance sheet, which in turn determines if the company gets the benediction of the ministry of commerce or not.

All are equal before the Law, but some are more equal than others.

Edited February 21, 2013 by manarak

[IrishIvan]

If they were actually serious about this I would be pretty worried if I had a house on a company name.

I would be more worried if I bought it for a Thai hooker named Noi or something that I met in a Rawaii bar. On another note I would be really interested in finding that list of jobs allowed to be performed by other Asean countries. is it in this forum somewhere? Also do they have more rights owning businesses? Ive got an bird on the side in Jakarta I wouldnt mind setting up here