What is considered a nominee company?

[Robert24]

I've been reading more frequently that Thai law enforcers are trying to pursue 'nominee' companies that are used to purchase land for foreigners. Now I'm unsure whether my company is considered a nominee company and I'm seeking some advise in that respect. My company is a private partnership ltd company. I own 49%, my thai wife owns 49% and her father 1% and her brother 1%. We use this company for all the business we are doing, ie buying, selling large quantities of sugar bags, renting out fork lifts and we also use for our property business. We bought some land a few years back where we have built a student apartment complex. We pay tax on our income from all businesses as required by the tax law. Now do we have a problem because we use this company for property business as well and is this considered a nominee company?

[Sunbelt Asia]

A nominee company is one in which the Thai partners invested no money themselves.

Did the Thai partners pay for the shares? Does the company actually operate any kind of business(es) that generate income, or was it just to own the land on your behalf? If it does (generate income), that would be less suspicious, The Thai shareholders will have to confirm that they did pay for their shares. Are any dividend being distributed to the shareholders? Who are the director(s) of the company? Or is it only you with control of the company?

These are some of the questions and concerns that the officers would bring up to determine if the company is a nominee company

[sunbeltlegal][/sunbeltlegal].