Thai Nominee Shareholding Crackdown in Pattaya announced by DSI

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Thai Nominee Shareholding Crackdown in Pattaya announced by DSI



PATTAYA: -- On Friday at Nong Nooch Gardens in Jomtien, a meeting led by the Department of Special Investigations (DSI) was held to discuss plans to begin a crackdown on foreign business people who use Thai Nominee Shareholders to effectively control Thai companies.

At the meeting were over 100 delegates from the DSI, The Ministry of Commerce, Tourism Authority of Thailand and representatives from the public and private sector. They gathered to discuss how some Foreign business operators have exploited the Thai Nominee Shareholding loophole for many years, despite it being illegal under the Foreign Business Act of 1999.

The DSI would now like to see this loophole closed and investigations started on companies which use Thai Shareholders but are effectively controlled by Foreign Nationals.

Full story: http://www.pattayaone.net/pattaya-news/140902/thai-nominee-shareholding-crackdown-in-pattaya-announced-by-dsi/


-- Pattaya One 2014-08-22

[Gsxrnz]

How dare these nasty foreigners dare to contribute to the Thai economy!!!

[Suriya4]

Like Thaksin, all assets of nominees must be confiscated for the state and thai people.

[shirtless]

Let see western governments do the same to Thai nationals with investments abroad, make these rules reciprocal.

[chooka]

They want foreign investment but don't want foreigners owning more than 49% after they contribute and invest 100%. Whilst they are going after foreigners in Thailand they are openly encouraging Thais to invest abroad where they can own 100% which includes the land their business will sit on.

[ukrules]

This won't encourage foreigners to invest in Thailand, far from it people will be deterred.

I will never invest anything more than a trivial amount in Thailand due to these regulations.

This is not my loss.

[Tatsujin]

Now those xenophobic true colors are shining through . . . let's protect Thailand from the nasty corrupt foreigners even more, cos heaven forbid we can't have a level playing field here . . .

[carstenp]

I feel sorry for the foreigner using Thai Nominee Shareholding to keep control of the land, and house for millions of bt to protect there investment, but they know it was illegal in the beginning

In the end, is all about money and keep them safe in Thailand

Edited August 22, 2014 by carstenp

[smedly]

Is this really going to go as far as confiscating property bought using this method, if so it has huge implications for many

[mrtoad]

Better fit they the DSI went after known foreign criminals operating scams in Thailand. Bogus lawyers, property scams etc

[LennyW]

Be a few ringpieces twitching now!!

[ATF]

This has been going on for a while and any company found to be at fault is given 180 days to put the matter straight.

[Naam]

Is this really going to go as far as confiscating property bought using this method, if so it has huge implications for many

what part of

Foreign business operators

is it you don't understand?

[smedly]

Be a few ringpieces twitching now!!

well the current administration has been coming down hard on the locals for land encroachment etc so it follows that if foreigners have been bending the rules then it's not a huge surprise that they will also be dealt with

I have mixed feelings about how Thailand protects their property and land ownership and business practices - but considering the meltdown of western banks through less than stellar management and dare I say it corruption and the aftermath of required bailouts in the trillions perhaps it's just as well

[carstenp]

Is this really going to go as far as confiscating property bought using this method, if so it has huge implications for many

what part of

Foreign business operators

is it you don't understand?

First at all. I don't think they are going to confiscating property . But many do this to keep control of land and property

Create a thai company with shareholders by the foreigner and split it out to share holdes from 3 to 7 thai persons payed a sum of money to accept a signature

The company is just a empty foreign business, with no income and expenses

Company buy the land

Company buy/build a house, buy cars and so on

Keep the assert in the company, and the foreign has full control. Many do this down here to protect there investment.

So as you say it's a company by a Foreign business operators

[leesgems]

Be a foreigner and marry a Thai then do the paperwork in your foreign country and the Thai will be free to work any job with no work permit and can become a citizen quite easily and own as much land as they want, however, the foreigner married to the Thai, living and supporting the family in Thailand, cannot work without extraordinary paperwork and financial investment, has a very slim chance of becoming a citizen and cannot own land.

[janpharma]

The Government should think about what it will cost to Thailand if all those investing foreigners and contributers to the well being of many Thai families will leave Thailand...

[konying]

I would only be guessing but I believe the targets are go go bar owners .

The latest incident with esteemed owner of windmill may have been the spark for it.

[ezzra]

If Thailand will stop being xenophobic and treat the foreigners like a pariahs wanting to steal Thailand's

riches and carry it aboard, and accept them for what they are and what they have contributed and can

contribute further, maybe we all can stop hiding and using clandestine method just to live in

this country...

[Tatsujin]

This is the first step to reclaiming Pattaya for the Thai's . . .

[akaika]

Let see western governments do the same to Thai nationals with investments abroad, make these rules reciprocal.

These rules are already reciprocal. Foreign owned companies in the USA is harder than you might imagine. Recently had a friend that had already started to set up a company. Left USA to obtain the business visa and received the temporary business visa but upon returning, she was detained for investigation of the business by the immigration agents in the airport in Hawaii. After they reviewed the website, it was determined this business would allow revenue to leave the US so she was refused entry. After more than 48 hours in detention in the airport, with a toddler, she had to immediately return to Thailand.

[Deli]

The Government should think about what it will cost to Thailand if all those investing foreigners and contributers to the well being of many Thai families will leave Thailand...

Yes, but they won't, as this would need logic.

[atsiii]

My wife is a Thai national; I am a USA national. We live in each country roughly six months per year. But the difference in the way we are treated by each other's native country is night and day. My wife travels in and out of the USA on her Thai passport never needing a Visa. She can work, own property, own businesses, go to school, whatever. She is protected against overt discrimination and welcomed as a tax-paying, contributing part of society. But no matter how long we are married, nor how long we are in Thailand, I can never do any of those things. We are both college educated experienced professionals; but she is welcomed and wanted in my country, and I never will be in hers. Xenophobic or not, it's just plain dumb.

[KittenKong]

I feel sorry for the foreigner using Thai Nominee Shareholding .....

I dont. It's illegal. It's always been illegal. There has never been any suggestion that it is anything other than completely illegal.

Anyone who does this chooses to do so in full knowledge of the fact that it is totally illegal, and so they only have themselves to blame if it goes pear-shaped.

That said, from the report it appears that they are targeting active businesses rather than just house-owning nominee company structures. Though I would not be at all surprised if the latter were not targeted also at some point in the near future.

[primapagina]

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I feel sorry for the foreigner using Thai Nominee Shareholding to keep control of the land, and house for millions of bt to protect there investment, but they know it was illegal in the beginning

In the end, is all about money and keep them safe in Thailand

As someone pointed out, there should reciprocity. If Thailand was a poor, undeveloped country, I would have understood the principle - protection from the foreign rich countries 'shopping' here. But Thailand is not, and actually the most opulent and famous mall in my city - Milan, Italy - has been bought by a rich Thai.

Not to mention the fact that for business interests, US citizens do not have to comply with the law (another demonstration that the principle is forgotten when money or political interests are on the table)...

[BudRight]

Let see western governments do the same to Thai nationals with investments abroad, make these rules reciprocal.

These rules are already reciprocal. Foreign owned companies in the USA is harder than you might imagine. Recently had a friend that had already started to set up a company. Left USA to obtain the business visa and received the temporary business visa but upon returning, she was detained for investigation of the business by the immigration agents in the airport in Hawaii. After they reviewed the website, it was determined this business would allow revenue to leave the US so she was refused entry. After more than 48 hours in detention in the airport, with a toddler, she had to immediately return to Thailand.

I do not believe this story as written.

[stevehaigh]

is this the beginning of the end of farangs 'owning' land though nominee companies?

[carstenp]

I feel sorry for the foreigner using Thai Nominee Shareholding .....

I dont. It's illegal. It's always been illegal. There has never been any suggestion that it is anything other than completely illegal.

Anyone who does this chooses to do so in full knowledge of the fact that it is totally illegal, and so they only have themselves to blame if it goes pear-shaped.

That said, from the report it appears that they are targeting active businesses rather than just house-owning nominee company structures. Though I would not be at all surprised if the latter were not targeted also at some point in the near future.

Agree with you. But I know a few people, where the lawyer don't tell them about it. It seems like the lawyer just accept the way to do it.

[KittenKong]

Agree with you. But I know a few people, where the lawyer don't tell them about it. It seems like the lawyer just accept the way to do it.

Absolutely. Many lawyers and estate agents/developers here seem to promote this a perfectly normal way of doing things.

But I dare say that the people who ran the opium dens a few decades ago also found that to be completely normal.

[ATF]

My wife is a Thai national; I am a USA national. We live in each country roughly six months per year. But the difference in the way we are treated by each other's native country is night and day. My wife travels in and out of the USA on her Thai passport never needing a Visa. She can work, own property, own businesses, go to school, whatever. She is protected against overt discrimination and welcomed as a tax-paying, contributing part of society. But no matter how long we are married, nor how long we are in Thailand, I can never do any of those things. We are both college educated experienced professionals; but she is welcomed and wanted in my country, and I never will be in hers. Xenophobic or not, it's just plain dumb.

Well go somewhere else where you feel Americans are appreciated more.

BTW every guy's wife or GF on this forum is college educated with multiple doctorates.