2 firms face action under foreign ownership act

[thailiketoo]

Thailand is full of <deleted> when it says it has trade agrrements with countries like Australia. They say they have no import duties, bullshite. If I want to put vegemite on my toast it is cheaper for me to fly to Australia get it spread and fly back. Almost 15 AUD for a small jar of vegemite in Thailand and you can buy the same thing in Aust for 3 AUD

Pharmaceuticals

Thailand phased current tariffs of 10% or 20% to zero in 2009. On products of specific interest, previous tariffs of 10% were halved immediately and were eliminated in 2007.

Agriculture Meat

Thailand phased the current 32% tariff for sheep meat to zero in 2010.

Thailand immediately reduced the tariff on beef to 40%, down from 51%, and for beef offal to 30%, down from 33%, and will phase these rates to zero in 2020.

Thailand will phase the current 33% tariff for pork to zero in 2020.

Dairy

Thailand immediately eliminated the previous tariffs on infant formula (5%), lactose (up to 20%), casein and milk albumin (10%), and phased the tariffs on butter fat, milkfood, yoghurt, dairy spreads and ice cream to zero in 2010.

It provided an immediate additional quota for Australia of 2,200 tonnes for skim milk powder and 120 tonnes for liquid milk and cream, expanding by 17% at five-yearly intervals until 2025, when all tariffs and quotas will be eliminated.

It will phase the tariffs for butter and cheese, other milk powders and concentrates to zero in 2020.

Fruit and vegetables

Thailand phased tariffs on most fresh fruit and vegetables (current rates mostly 33% or 42%) to zero in 2010. Tariffs on mandarins (42%) and grapes (33%) were immediately reduced to 30%, and will be phased to zero in 2015.

Thailand immediately eliminated its tariffs on most tropical fruit.

Thailand provided immediate additional quota for fresh potatoes, expanding yearly until 2020, when all tariffs and quotas will be eliminated. The current 30% tariffs for processed potatoes will be phased to zero in 2015.

Thailand immediately reduced to 24% the previous tariffs of 30% on fruit juices and canned fruit, and phased the tariff to zero in 2010. The previous 30% tariffs on canned mixed fruit and canned pineapple were eliminated immediately.

[ripper15]

Tip of the hat to zink,aaacorp,Frostie and thailiketoo. Thanks,I will check it out the info.

[Soutpeel]

Many countries welcome foreign investment, usually actively encouraging it. Not in Thailand, sadly. It would be a massive boost to investment if foreigners could own say up to one rai of land for residential our small business purposes, and own own 100% shares if employing say, a couple of Thais. While Thailand may have a genuine concern about big foreign companies buying up vast tracts of land this doesn't apply to individual or small business owner.

When the Thai government talks about foreign investment they're thinking of companies like Toyota who have 7 billion baht of registered capital in Thailand. I know it's hard to get your head round but buying a rai in the boonies and employing your mother-in-law isn't 'foreign investment'.

7,000 farang investing one million baht is equal to that Toyota registered capital. Now we have a lot more than 7k farang and investing say 3-4mill in a house, a workshop or a restaurant and you can see the amount is far larger than Toyota so think again

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Yes but how many local jobs are the 7000 farangs creating for thai nationals ?.....registered capital is only a small part of the investment in a country and your not considering the local business' set up to support the Toyota operations

7000 farangs "investing" THB 1 million doesn't even come close Toyota's total investment in Thailand

So one suspects you need to think again

[NCFC]

Many countries welcome foreign investment, usually actively encouraging it. Not in Thailand, sadly. It would be a massive boost to investment if foreigners could own say up to one rai of land for residential our small business purposes, and own own 100% shares if employing say, a couple of Thais. While Thailand may have a genuine concern about big foreign companies buying up vast tracts of land this doesn't apply to individual or small business owner.

When the Thai government talks about foreign investment they're thinking of companies like Toyota who have 7 billion baht of registered capital in Thailand. I know it's hard to get your head round but buying a rai in the boonies and employing your mother-in-law isn't 'foreign investment'.

7,000 farang investing one million baht is equal to that Toyota registered capital. Now we have a lot more than 7k farang and investing say 3-4mill in a house, a workshop or a restaurant and you can see the amount is far larger than Toyota so think again

Sent from my iPhone using Thaivisa Connect Thailand

Yes but how many local jobs are the 7000 farangs creating for thai nationals ?.....registered capital is only a small part of the investment in a country and your not considering the local business' set up to support the Toyota operations

7000 farangs "investing" THB 1 million doesn't even come close Toyota's total investment in Thailand

So one suspects you need to think again

You are not thinking clearly at all.

There are obviously a lot more than 7000 farang in Thailand and I suggest the amount that all these people are bringing in, and more importantly, could potentially bring in if the rules were more friendly, would be a sum larger than Toyota invests in Thailand.

As to the question of employment of Thais, I don't know how many Toyota employ in Thailand but if there were only 10,000 foreigners employing a minimum of four Thais, that would be 40k extra jobs, a not insignificant amount.

It is not just jobs and investment. If Thailand was foreigner friendly towards small businesses it could attract a lot of highly-skilled technicians, consultants and freelance workers and Thailand would benefit from skills transfer, too. I often think about the high number of skilled early retired foreigners who could work , perhaps part-time or even on a voluntary basis who would bring years of much needed experience and skill to the Thai economy, but sadly the governments do not seem to be interested.

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[sustento]

Thailand is full of <deleted> when it says it has trade agrrements with countries like Australia. They say they have no import duties, bullshite. If I want to put vegemite on my toast it is cheaper for me to fly to Australia get it spread and fly back. Almost 15 AUD for a small jar of vegemite in Thailand and you can buy the same thing in Aust for 3 AUD

Can you fly to Oz and back for less than 15 AUD then?

[bob6130]

The reason for this LAW is, Initutive, Competition, New Ideas and Professionalism that the Thais lack and they are scared of losing something they can never get.

[DrTuner]

Thailand is full of <deleted> when it says it has trade agrrements with countries like Australia. They say they have no import duties, bullshite. If I want to put vegemite on my toast it is cheaper for me to fly to Australia get it spread and fly back. Almost 15 AUD for a small jar of vegemite in Thailand and you can buy the same thing in Aust for 3 AUD

That horrid substance should have an extremely high tax just to preserve the taste buds of those who still have them. Better yet, classify as a toxin.

[bigbamboo]

Thailand is full of <deleted> when it says it has trade agrrements with countries like Australia. They say they have no import duties, bullshite. If I want to put vegemite on my toast it is cheaper for me to fly to Australia get it spread and fly back. Almost 15 AUD for a small jar of vegemite in Thailand and you can buy the same thing in Aust for 3 AUD

That horrid substance should have an extremely high tax just to preserve the taste buds of those who still have them. Better yet, classify as a toxin.

That's a bit unfair, it's just that Aussies just have a different perception to the rest of us of what tastes good. To them Vegemite is a culinary treat they've been force fed on since they were kids in those endless suburbs whereas anybody else might use it to stain their furniture or protect it against woodworm.

I mean, have you ever drunk their 'beer'?

[Sydebolle]

Well, why worry?
a) the Lord knows everything and our hosts know even a little more

it is proven that Thais are most qualified to do anything hence do not need Alien nuisances

c) the economy and tourism is exploding (30% occupancy in Bangkok's hotels) despite the de facto civil war without weapons, sky-rocketing taxation on imported booze and wine (well, local firewater Lao Kaow sells at a staggering B 52/bottle while the tax on a 0.7litre bottle of wine jumped only B 126)
d) the rice deal brought so much wealth all over the Northeast and the Central plains of the country

I, for one, suggest, that all Aliens are kicked-out on 24 hours notice (including me) and likewise make sure, NOTHING is imported on foreign goods while nothing is exported to the Aliens of this planet.

No trains, cars, planes, no food technology, no mobile phones, TV, internet anything - welcome to the Suriyothai days with slavery, harems and ransacking the uneducated poor (majority). The frightening thing is, that Thais treat whenever possible everything non-Thai slave-like (Cambodians, Burmese etc.), the karaoke and turkish bath shops are in full swing and the ransacking (see above on rice scheme) is taking place while we speak.

How nice would this paradise called Thailand be without those selected idiots which give the majority of nice people such a bad name and leave a stale taste behind - to say the least!

[dighambara]

If the farangs are investing 100% of the money and taking all the financial risks why can't they run the company. Having to take all the risks and handing over the majority of the profits to Thais is simply wrong. Why would you invest and set up a business employing thais when you will never own it.

When '3rd world' countries allow foreigners unlimited ownership, the country experiences rapid growth, often elevating from low level developing country to 'developed' and modern. This process can complete within 2 decades.

Thailand's policies are purposely developed to keep the poor people down and keep the country in a feudal environment, divided between Lords and serfs.

[Beetlejuice]

Allegedly having Thais act as nominees so foreigners can hold majority control.

Shock, horror, I can’t believe it, surely this can’t be true?

They will be further investigated by the Department for Special Investigation. Ha, ha, ha, I could take them around and show them exactly where they all are in one afternoon. A blind man couldn’t miss them.

If the authorities were to investigate all the restaurants, cafes, massage parlours, spas, bars, karaoke clubs, travel agents and tour companies in the main city of Chiang Mai and some in the outer areas suspected of being illegally owned and operated by farangs, I am sure at least 90% of these businesses would be shut down.

Allegedly? My foot, definitely is the case. This practice of Westerner backed owner businesses in Chiang Mai has been going on since as far back as I can remember, so what’s taken the DSI so long to investigate?

[Chao Lao Beach]

How is this act going to square with membership of the AEC ?

It shouldn't change it. Thai companies still need to be Thai majority owned, BUT foreign (ASEAN) companies will be able to operate in Thailand (possibly just particular sectors though).

Can you please share more information please.

[laurentbkk]

some Thai companies bought businesses in my country and got 100% of shares , what the government has to say about that ?....... Should be the same here ....

We have Thai friends (husband/wife) who own a Thai restaurant in Melbourne Aust and they own 100% they didn't have to give 51% of their business to an Aussie. The even own the building and the "LAND" it sits on.

I know some very wealthy Thais who bought a vineyard and castle in France , they have 100% of ownership ..... maybe time for our governments to impose this 51/49% , after all tourists pay higher than thais to go and see some tourist attraction ...

[andid]

How is this act going to square with membership of the AEC ?

It shouldn't change it. Thai companies still need to be Thai majority owned, BUT foreign (ASEAN) companies will be able to operate in Thailand (possibly just particular sectors though).

Wrong, at 2015 when ASEAN will be in full power, it will start with 70% ownership.

Kamala Rider, and Chao Lao Beach,

The AEC deal actually states that each of the ASEAN countries will allow up to 70% (they can go higher as is the case in SG already for example) ownership by ASEAN citizens and ASEAN companies for SERVICES companies.

The scheduled date for this to commence was in 2008, with a progressive roll out to various service type companies between then and 2015. There was supposed to be a 51% step and then 70% step.

Kamala Rider - Currently the Thai government has not yet implemented any changes to the FBA and therefore we think that Thailand will therefore not be ready to allow the 70% ownership option by then (despite them signing an agreement to do this back in 2007). Actually Jan 1st 2015 was when all changes were planned to be completed, so many things should have been in "full force" well before today. Unfortunately many things have not been completed, and a number of countries have now said they will complete things by Dec 31st 2015 .... but we fear this may mean "sort of completed, or getting started - trust us".

Chao Lao Beach - there is another problem, which is that there is currently no agreed way for an ASEAN Citizen or Company to fill out a form or make an application to establish or purchase such a company which has a box that says "I want to claim my right as an ASEAN" (or anything similar). The government workers who need to administer these things just have not been told what to do yet.

The AEC does not provide any opportunity for anyone other than ASEAN Citizens or ASEAN registered companies.

Some others here have been saying that nominee structures work or preference shares etc.

The FBA has a clear intent - Foreigners (of all types currently) are not permitted to own or control Thai companies unless they either have BOI approval or fall into some exemption category (eg Treaty of Amity for US citizens, and TAFTA for Aussies - although this is not actually the case as others have pointed out). Whenever a case has gone in front of a judge in Thailand, all preference shares deals or pre-signed sale of share certificates or other similar "controls" have been presented to a judge - they have been thrown out as they do not comply with the intent of the law. This is what is known as Foreign Dominance and there are many in the Thai government and business who would love to open this can of worms. So far the JFCCT has been able to keep it closed.

I am not saying this is right or wrong - just the facts about the AEC and about company ownership here.

Again - please ask your chamber of commerce these questions and if you want a change, please ask them to lobby on your behalf, with the best approach being to channel this through the various JFCCT committees. If you are not a member of a chamber, I recommend you to join, but make sure you join one that is part of the JFCCT (some are not currently). There are many volunteer business operators working on your behalf here trying to get some changes implemented to allow our investments, relationships and contribution to Thailand recognised. Every time someone tries to set something up that gets around the rules, it is easy for the Thai authorities to use this as ammunition against foreign investors and makes it harder for everyone in the long term.

[marcusd]

6,942 registered companies - is that it? fewer than 7,000 companies in the whole country?! lmfao

No wonder the oligarchs keep control.

Still can't believe there are so few but can't find an exact figure. Maybe 7,000 just in Chiang Mai.

I thought of setting up a company when I first moved here... then thought again.

Yes, wait for the AEC to kick in and let's see how Thais are going to stop companies from ASEAN countries operating in Thailand. Then pick the best other ASEAN country and set up a company there.

That's why companies set up in Philippines

[marcusd]

some Thai companies bought businesses in my country and got 100% of shares , what the government has to say about that ?....... Should be the same here ....

We have Thai friends (husband/wife) who own a Thai restaurant in Melbourne Aust and they own 100% they didn't have to give 51% of their business to an Aussie. The even own the building and the "LAND" it sits on.

As another poster here said there is the TAFTA agreement and Aussies can do the same in Thailand - but would you want to? Here is the link scroll through SERVICES

https://www.dfat.gov.au/fta/tafta/key-outcomes.html#outcomes-services

[Old Man River]

some Thai companies bought businesses in my country and got 100% of shares , what the government has to say about that ?....... Should be the same here ....

We have Thai friends (husband/wife) who own a Thai restaurant in Melbourne Aust and they own 100% they didn't have to give 51% of their business to an Aussie. The even own the building and the "LAND" it sits on.

Same in the US. Same most places, but all foreigners know the rules here.

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[northernjohn]

If the farangs are investing 100% of the money and taking all the financial risks why can't they run the company. Having to take all the risks and handing over the majority of the profits to Thais is simply wrong. Why would you invest and set up a business employing thais when you will never own it.

Good point why do they?

Are they wanted criminals in their own country?

They knew the law when they set up the scam a little late to whine about it now.

[thailiketoo]

6,942 registered companies - is that it? fewer than 7,000 companies in the whole country?! lmfao

No wonder the oligarchs keep control.

Still can't believe there are so few but can't find an exact figure. Maybe 7,000 just in Chiang Mai.

I thought of setting up a company when I first moved here... then thought again.

Yes, wait for the AEC to kick in and let's see how Thais are going to stop companies from ASEAN countries operating in Thailand. Then pick the best other ASEAN country and set up a company there.

That's why companies set up in Philippines

Thai GDP per capita (PPP), $14,636 Phillipines $6,133

http://en.wikipedia.org/wiki/List_of_ASEAN_countries_by_GDP_%28nominal%29

[Thai at Heart]

6,942 registered companies - is that it? fewer than 7,000 companies in the whole country?! lmfao

No wonder the oligarchs keep control.

Still can't believe there are so few but can't find an exact figure. Maybe 7,000 just in Chiang Mai.

I thought of setting up a company when I first moved here... then thought again.

Yes, wait for the AEC to kick in and let's see how Thais are going to stop companies from ASEAN countries operating in Thailand. Then pick the best other ASEAN country and set up a company there.

That's why companies set up in Philippines

Thai GDP per capita (PPP), $14,636 Phillipines $6,133

http://en.wikipedia.org/wiki/List_of_ASEAN_countries_by_GDP_%28nominal%29

Huh?

https://www.cia.gov/library/publications/the-world-factbook/fields/2004.html

Thailand

$9,900 (2013 est.)

$9,600 (2012 est.)

$9,100 (2011 est.

Yes. Thailand is richer than the Philippines but that is way too high for the Thai numbers. Just imagine how good it would have been if all these stupid protests hadn't been going on.

[thailiketoo]

6,942 registered companies - is that it? fewer than 7,000 companies in the whole country?! lmfao

No wonder the oligarchs keep control.

Still can't believe there are so few but can't find an exact figure. Maybe 7,000 just in Chiang Mai.

I thought of setting up a company when I first moved here... then thought again.

Yes, wait for the AEC to kick in and let's see how Thais are going to stop companies from ASEAN countries operating in Thailand. Then pick the best other ASEAN country and set up a company there.

That's why companies set up in Philippines

Thai GDP per capita (PPP), $14,636 Phillipines $6,133

http://en.wikipedia.org/wiki/List_of_ASEAN_countries_by_GDP_%28nominal%29

Huh?

https://www.cia.gov/library/publications/the-world-factbook/fields/2004.html

Thailand

$9,900 (2013 est.)

$9,600 (2012 est.)

$9,100 (2011 est.

Yes. Thailand is richer than the Philippines but that is way too high for the Thai numbers. Just imagine how good it would have been if all these stupid protests hadn't been going on.

Nuts. I posted a link. If you are too lazy to look what PPP means don't blame the numbers blame your laziness.

[whybother]

Thai GDP per capita (PPP), $14,636 Phillipines $6,133

http://en.wikipedia.org/wiki/List_of_ASEAN_countries_by_GDP_%28nominal%29

Huh?

https://www.cia.gov/library/publications/the-world-factbook/fields/2004.html

Thailand

$9,900 (2013 est.)

$9,600 (2012 est.)

$9,100 (2011 est.

Yes. Thailand is richer than the Philippines but that is way too high for the Thai numbers. Just imagine how good it would have been if all these stupid protests hadn't been going on.

Nuts. I posted a link. If you are too lazy to look what PPP means don't blame the numbers blame your laziness.

Maybe you should read your link more closely.

"List of ASEAN countries GDP, International Monetary Fund 2018 estimates."

[thailiketoo]

Thai GDP per capita (PPP), $14,636 Phillipines $6,133

http://en.wikipedia.org/wiki/List_of_ASEAN_countries_by_GDP_%28nominal%29

Huh?

https://www.cia.gov/library/publications/the-world-factbook/fields/2004.html

Thailand

$9,900 (2013 est.)

$9,600 (2012 est.)

$9,100 (2011 est.

Yes. Thailand is richer than the Philippines but that is way too high for the Thai numbers. Just imagine how good it would have been if all these stupid protests hadn't been going on.

Nuts. I posted a link. If you are too lazy to look what PPP means don't blame the numbers blame your laziness.

Maybe you should read your link more closely.

"List of ASEAN countries GDP, International Monetary Fund 2018 estimates."

Lack of initiative far too prevalent in Thailand.

[Arkady]

If the farangs are investing 100% of the money and taking all the financial risks why can't they run the company. Having to take all the risks and handing over the majority of the profits to Thais is simply wrong. Why would you invest and set up a business employing thais when you will never own it.

Why? Because people are greedy and think they can get away with it. I'm glad that Thailand is Nationalistic and slows down foreign ownership.

Are you saying that a farang who is married to a thai and have children are being greedy for wanting more than 49% from their 100% investment. I think it is Thailand acting like a parasite and sucking all they can out of the farang. It is not the foreigner who is being greedy, he is just trying to run a business to take care of his thai family.

Whether you can have a Thai spouse own a majority stake in a business that is 100% funded by you is an interesting legal point. Under the Civil and Commercial Code any new assets acquired by either partner in a marriage are regarded as common conjugal property. Therefore, if you receive a remittance from overseas it is already joint property of your wife and vice versa, if you send the remittance to her. Therefore tests to ascertain whether this remittance later used to subscribe to shares in a new company in the name of your wife was legitimately earned by your wife or came from her Thai family would make no sense under the CCC. Even the Land Dept's band aid declaration form for Thai-foreign couples buying land seems at loggerheads with the CCC and would probably not stand a challenge in the Supreme Court.

I am fairly confident that, if a Thai-foreign couple running a family business with a structure as above were charged under the FBA it would be thrown out by the courts: either the court of first instance, the appeal court or the supreme court, if they defended themselves all the way. A family business is a standard business structure in Thailand and denying the right of Thais married to foreigners to operate such as structure would arguably be unconstitutional as well as against the CCC. Unfortunately the average Thai plod is ignorant of the finer points of the law and only well versed in extortion.

I believe they had one of their "Clampdowns" on farangs supporting Thai partners in starting a business. It is an illegal practice, a farang can not give money to his g/f or wife to start a business the money must be hers

I am unaware of the clampdown to which you refer. If you have any references to it, please cite them. As I mentioned, any money coming into the household after registration of marriage would be deemed common property under the CCC. So it would impossible to say it was the foreign partner's asset. Whether the BDD would accept this argument to allow registration of a company on this basis, I can't say since I set mine up long before the checks on Thai shareholders' sourced of funds started. However, I am fairly certain that a case like that would not make it all the way through the judicial system and think it unlikely that a crackdown on Thai-Farang family businesses would ever get under way. The Land dept when faced with this issue ducked it by coming up with the standard declaration form and I am sure the Commerce Ministry would take this into account. None of them wish to spend years being sued in the Administrative Court for denying a Thai woman her fundamental right to extract money from a foreign husband and invest it in a Thai business.

Sent from my iPhone using Thaivisa Connect Thailand

[Thai at Heart]

6,942 registered companies - is that it? fewer than 7,000 companies in the whole country?! lmfao

No wonder the oligarchs keep control.

Still can't believe there are so few but can't find an exact figure. Maybe 7,000 just in Chiang Mai.

I thought of setting up a company when I first moved here... then thought again.

Yes, wait for the AEC to kick in and let's see how Thais are going to stop companies from ASEAN countries operating in Thailand. Then pick the best other ASEAN country and set up a company there.

That's why companies set up in Philippines

Thai GDP per capita (PPP), $14,636 Phillipines $6,133

http://en.wikipedia.org/wiki/List_of_ASEAN_countries_by_GDP_%28nominal%29

Huh?

https://www.cia.gov/library/publications/the-world-factbook/fields/2004.html

Thailand

$9,900 (2013 est.)

$9,600 (2012 est.)

$9,100 (2011 est.

Yes. Thailand is richer than the Philippines but that is way too high for the Thai numbers. Just imagine how good it would have been if all these stupid protests hadn't been going on.

Nuts. I posted a link. If you are too lazy to look what PPP means don't blame the numbers blame your laziness.

These are PPP numbers. Your figure in PPP show Thailand at 10.1k

I know very well what PPP and nominal means thanks. I the link I cannot see where you arrive at 14k. I found it.

The headline of the table says 2018 ESTIMATE

You should read the economist more. Then Yu would know that 14k is way too high for the current level of thai gdp, nominal or PPP.

Edited March 20, 2014 by Thai at Heart

[thailiketoo]

Dear Thai at Heart,

I posted an estimate of the GDPs by the World Bank for Thailand and the Philippines for 2018. I posted a link to those numbers.

http://en.wikipedia....y_GDP_(nominal)

That is what I intended to post to refute a silly statement like, "That's why companies set up in Philippines."

Foreign investment is higher in Thailand than the Philippines and by the estimates of the World bank will continue to be so.

The poster above was too lazy to click on the link I posted and decided to attack some numbers he thought I should post instead of numbers I posted.

I posted an estimate by the World bank. That is what I intended to post and that is the number I linked. Next time read the link so you will understand what I am posting.

And please learn how to use the quote function or stop posting.

Edited March 20, 2014 by thailiketoo