Phuket office identifies 82 'foreign-owned' businesses suspected of using Thai nominees

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Phuket office identifies 82 'foreign-owned' businesses suspected of using Thai nominees
Phuket Gazette

Mr Nimit is ready to take action against businesses illegally using Thai nominees in Phuket. Photo: Kritsada Mueanhawong

PHUKET: -- The Phuket Business Development Office (BDO) has identified 82 businesses suspected of breaching the Foreign Business Act (FBA) by using Thais as nominees so that foreigners can hold majority control.

The businesses were identified ahead of raids by the Department of Special Investigation (DSI) set for this week, targeting illegal foreign businesses in Phuket (story here).

“After checking our records, we identified 75 suspects running the 82 businesses we believe are using Thai nominees,” Phuket BDO Chief Nimit Kangkajit said.

“Of the 82 businesses, 64 of them are using the office of their accountant or lawyer as their business address. The others could not be contacted.”

All businesses in Thailand must have a physical address to legally operate.

“I would like to see the DSI make some progress in enforcing the law concerning Thai nominees,” Phuket Tourist Association Vice President Bhuritt Maswongsa said.

“Foreign tourism entrepreneurs see the benefit of these crackdowns, as it supports those who operate legitimately,” he said.

The number of businesses registered in Phuket from January 1, 2013 to July 9, 2013 has shown a four per cent increase over the same period last year, said Phuket BDO Chief Mr Nimit.

“Of the 950 businesses registered during this period, 171 companies are operated by Russians, and most of these are property related. And 171 companies are Korean-operated, most of which are tourism oriented,” explained Mr Nimit.

About 18,000 businesses are registered with the Phuket BDO, but only about 15,000 of them are open and operating, he said.

“This means 3,000 businesses have closed without following their legal obligations to notify the Business Development Office,” Mr Nimit said.

Source: http://www.phuketgazette.net/phuket_news/2013/Phuket-office-identifies-82-foreign-owned-businesses-suspected-of-using-Thai-nominees-21719.html


-- Phuket Gazette 2013-07-23

[Songhua]

It wasn't known before, yet it could be easily determined from records which had sat right there in the office all along.

(pssst ... DSI is coming)

[Alwyn]

Why is Phuket being singled out for this? It's the same anywhere in Thailand with foreigners who want/need a Thai company.

[ezzra]

I think they got the heading of the article wrong, it should read : "Phuket office

identifies 82 'foreign-owned' businesses suspected of NOT using Thai nominees"

[Tatsujin]

I wonder . . . if this is such a bad thing for Thailand, will they crack down on the Lawyers/Accountants that facilitate this, and also the Govt. officials that ease the way also?

What am I talking about, of course they won't lol

[Bluedan]

Does anyone know a business run by foreigners not using nominees?

The only other choice is to open a business, find genuine Thai investors who will actually invest 51% of the capital and own 51% of the company and have effective control.

Using nominees is illegal, but everyone does it. It greases the wheels, and is the bread and butter for Thai accounting firms who actually provide the nominees, not to mention the endless kickbacks which end up in the pockets of the same people who every now and the beat their chests and threaten a crackdown.

Option 2 is legal and likely to end in ruin.

Then again it's illegal to drive on the wrong side of the road also

[eezergood]

Phuket will soon be a hub...........

Edited July 23, 2013 by eezergood

[rafish]

Interesting that this "Witch Hunt," is only on Phuket Island. Why not Bangkok, Chiang Mai or Pattaya? I suppose its predominance is in Phuket? I think the start of this investigation should begin with all the Major Hotel Groups in Phuket since most are held with Thai nominees in absentia.

[Colabamumbai]

"Foreign tourism entrepreneurs" will benefit from the crackdown. Could be misread quickly to understand that foreigners who had businesses, as opposed to people who dealt with foreign tourism.

So am I to understand that it is Thai owned and operated businesses that would benefit from the crackdown, or both foreign and Thai owned? I was not that good at math.

Don't these things usually sort themselves out with arson or murder here in Tland?

[Sydebolle]

Nimit Kangkajit walks a very tight rope once the "farangs" are identified as "Russians". Not only are they smarter, but also more used to deal illegally and push their business through without much asking.

Maybe it is time that Thailand looks towards 21st century; this might help to understand, why Bali, Cambodia, the Philippines and even Malaysia has considerably higher tourism revenue.
Somsak skinning tourists alive upon arrival at Phuket, Don Mouieauiong or Swampi will have to look for a new job/victims anyhow. I, for one, work here but would not spend my hard-earned vacation here (anymore).

I do not subscribe to illegal activities but Thais need to realize that they are not the centre of the universe. If "illegal" travel agents illeglally are in thriving (legal) business then there is a loud message in red ink on the wall of Thailand!

[pmarlin]

Does anyone know a business run by foreigners not using nominees?

Yes, owned by Americans which they can by treaty.

[Thai at Heart]

This will end in a lot of nonsense court cases.

Proving these people are nominees is virtually impossible.

[madmitch]

Interesting that this "Witch Hunt," is only on Phuket Island. Why not Bangkok, Chiang Mai or Pattaya? I suppose its predominance is in Phuket? I think the start of this investigation should begin with all the Major Hotel Groups in Phuket since most are held with Thai nominees in absentia.

It's targeting Phuket because of the complaints about Russian businesses by highly influential local businesses (also known as tuttuk drivers!).

[Chazchallenger]

Just a point, but when they say new businesses are they also referring to people who have registered a buisiness just to buy a house, if they are referring to this then 50% of farangs that own homes here are going to eventually loose them.

[auserb]

Why is Phuket being singled out for this? It's the same anywhere in Thailand with foreigners who want/need a Thai company.

Hallo Alwyn, just want to tell you that I am one of the and that is true....so are they gona target Pattaya as well, and what will happen to us?

[madmitch]

This will end in a lot of nonsense court cases.

Proving these people are nominees is virtually impossible.

It's not rocket science to spot the same names being used as shareholders in a number of different companies. A quick check of Somchai's bank account to find he earns 9000 baht a month and there is your typical nominee.

My old Thai company (now properly closed) was set up in this way by a sponsor of TV and I am pretty sure that there are many, many more than 82 such companies on Phuket, a lot of which will have been formed just to buy land/property. And there is a seamless lead into last year's company crackdown.

Edited July 23, 2013 by madmitch

[kurnell]

Get rid of these foreign businesses, tourists, the lot. Then Phuket can go back to the paradise it once was.

[DiNiro]

Accountants, lawyers and government officials set up these companies and now they are going after the foreigner.

Of course.

[dudu]

I thought the law was, 49/51, so if the 51 nominees are Thai partners on paper,the law has not been broken, it has always been a lawyer's job, to advise and get around the law, legally!...I ,may be wrong?....

[pb1936]

Well when a Government imposes all manner of restraints and restrictions on foreign residents, denying them ownership of property and businesses, this is what happens.

I would like to see the same inflicted on Thai nationals ( or any others from counties with similar laws ) visiting or resident in the UK, where currently any foreigner is free to buy or invest in whatever they wish.

[Steiner]

What is this total paranoia Thai's exude from every pore.

Most bigoted people on the planet, foreigners can't own land because presumably they will buy up the whole country or push up prices for land (not if Thai's don't ask inflated prices in that equation).

Foreign owned businesses pay tax and vat (unlike most small Thai businesses).

Don't Thai's get it that any business legally paying taxes and salaries to anyone Thai or farang is a good thing for Thailand as that money goes straight back into the economy in not only tax but in restaurants, taxis, shopping, housing etc...

In most developed countries foreign investment is encouraged because the government's are aware of the potential increased inome that may be created.

Not Thailand.

The attitude of 'they' will steal our land and jobs amazes me.

One Thai girl, with a university degree and a straight face, once told me that 'America just wants to steal our rice and England stole our cats.'

<deleted>...

[nosatisfaction]

Does anyone know a business run by foreigners not using nominees?

Yes, owned by Americans which they can by treaty.

Correct, one more benefit of the Vietnam war

[nosatisfaction]

Get rid of these foreign businesses, tourists, the lot. Then Phuket can go back to the paradise it once was.

Call Leonardo!!!!!!!!!!!!!!!!!!!!

555555555555555, can't get anough of it

[nosatisfaction]

Why is Phuket being singled out for this? It's the same anywhere in Thailand with foreigners who want/need a Thai company.

Hallo Alwyn, just want to tell you that I am one of the and that is true....so are they gona target Pattaya as well, and what will happen to us?

Become a beggar, not much more we can do.

[Doc46]

I thought the law was, 49/51, so if the 51 nominees are Thai partners on paper,the law has not been broken, it has always been a lawyer's job, to advise and get around the law, legally!...I ,may be wrong?....

I think that you are right,So why are they after the Farang and why don't they go after all the lawyer's (They are the crooks) and lock them away for life

[KarenBravo]

I thought the law was, 49/51, so if the 51 nominees are Thai partners on paper,the law has not been broken, it has always been a lawyer's job, to advise and get around the law, legally!...I ,may be wrong?....

I think that you are right,So why are they after the Farang and why don't they go after all the lawyer's (They are the crooks) and lock them away for life

Because they are Thai and can do no wrong. They were "tricked" into it by evil, unscrupulous foreigners.......

[bushwacker]

He looks so happy that his smile is going to crack his face. He must be thinking .... look mum, i got my pic taken, i did something that was almost impossible to figure out, is my boss watching .... now watch me stir the pot.

[pistachios]

Does this guy really expect foreigners to start a business by giving the majority of its shares and control to some Thais? How clueless one can be...

[nakhonandy]

What is this total paranoia Thai's exude from every pore.

Most bigoted people on the planet, foreigners can't own land because presumably they will buy up the whole country or push up prices for land (not if Thai's don't ask inflated prices in that equation).

Foreign owned businesses pay tax and vat (unlike most small Thai businesses).

Don't Thai's get it that any business legally paying taxes and salaries to anyone Thai or farang is a good thing for Thailand as that money goes straight back into the economy in not only tax but in restaurants, taxis, shopping, housing etc...

In most developed countries foreign investment is encouraged because the government's are aware of the potential increased inome that may be created.

Not Thailand.

The attitude of 'they' will steal our land and jobs amazes me.

One Thai girl, with a university degree and a straight face, once told me that 'America just wants to steal our rice and England stole our cats.'

<deleted>...

Everyone I know does this, it is the only way.

As for the Thai with the university degree, bought from here by the sound of it.

They are targetting Phuket first but it will spread.

[tomross46]

Does anyone know a business run by foreigners not using nominees?

The only other choice is to open a business, find genuine Thai investors who will actually invest 51% of the capital and own 51% of the company and have effective control.

Using nominees is illegal, but everyone does it. It greases the wheels, and is the bread and butter for Thai accounting firms who actually provide the nominees, not to mention the endless kickbacks which end up in the pockets of the same people who every now and the beat their chests and threaten a crackdown.

Option 2 is legal and likely to end in ruin.

Then again it's illegal to drive on the wrong side of the road also

Yes there are many, most of these are certified by the Board of Investment. These companies include American, Japanese, Chinese, German, French and British. Toyota manufacturing is 100% owned by Japanese.