Illegal companies for buy land

[darth31]

Anyone think that the new regime will start look into land and houses bought by empty companies? Recent crackdown on many illegal buisnisses and so on made me think that this would be possible in the future! There is many houses that is built on land, owned by thai shareholders and one farang! this is not done quite legal when it comes to the law in Thailand. I think if the right people look into this matter it can cause serious headacke to the owners of these houses! They broke the law with help from lawyers, but there is no excuse, and it can be a painful and expensive experiense. Or will it be such a big problem for Thaialnd to do something about this? Such as inverstors flee Thailand and international condamination? Just a thought!

[darth31]

http://www.sunbeltlegaladvisors.com/property/buying-land-in-thailand/

[Tmymaimee]

Why is it illegal for a foreigner to own 49% of a Thai company, that company then purchases a plot of land and leases it out for a monthly income? Definitely a working business model used worldwide.

[darth31]

Foreigners are not legally allowed to own land although with a few exceptions they can own one rai of non-inheritable land.That said, many foreigners started majority Thai owned limited companies with the sole reason of buying land and this loophole is now being closed as more land offices are cracking down on non-active companies that purchase land. The Thai government has issued guidelines for local Land Offices to follow in regards to partially foreign owned companies buying and holding land. The use of nominee shareholders is being eliminated and this is not a wise way to obtain land.

Current regulations require that the company be an actively trading business with money flowing through the books, shareholders meetings must be held, minutes taken and yearly audits filed. Additionally the company must have a legitimate business purpose that is registered with the Business Registration Department.

The Land Office will investigate all Thai shareholders of a company wishing to purchase land and ensure that they are legitimate investors with enough financial resources to actually invest the required amount of capital in the company.

[Soutpeel]

Why is it illegal for a foreigner to own 49% of a Thai company, that company then purchases a plot of land and leases it out for a monthly income? Definitely a working business model used worldwide.

Because per thai law, forming a shelf company for the express purposes of the circumnavigation of the land ownership laws is illegal that's why

[craigt3365]

This has been discussed to death and we don't need a new topic on this in the General forum.

Topic Closed.