Thai Nominee Shareholding Crackdown in Pattaya announced by DSI

[Thai at Heart]

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.

Well then NO ONE should ever have been telling any foreigner he could own land in Thailand.

If they follow this through, they will entrap thousands of foreigners and there will be a huge percentage of them who did not know what they were doing was illegal at the time.

I am not in one of those types of partnerships but there are literallt millions of companies in Thailand set up with silent Thai partners who do nothing more than sign papers.

The consequences of a real crack down like this can be massive. Crack on Thailand , shoot your own foot rather than reform the law.

[Showbags]

Thaivisas run and owned by a foreigner innit ?

[BestBitterPhuket]

If the intention is to scare away expats, long-term tourists and current and future business owners, they will probably be successful. Will it have a negative impact on the Thai economy, yes, if it is large scale. I don't understand why anyone invests in this country. I have a business in a neighboring country, where full ownership is 100% legal and foreigners are ENCOURAGED to set up businesses and invest and they have provided a good climate and legal infrastructure.

This crackdown is only good if it is followed up by a sensible reform on foreign business ownership and protection of foreign investments. it is needed, because Thailand, just like most other countries, can't develop fully without full outside participation.

[KittenKong]

Well then NO ONE should ever have been telling any foreigner he could own land in Thailand.

I wont argue with that. Unfortunately lies and deception seem to be par for the course in many Thai business transactions, especially if farangs are involved.

[bertty]

I think this is a long slippery slope. What's next, house in your wife's name but she doesn't have a job? No proof of her ability to purchase the house, hmmmm. You paid for it farang. Close many of the bars, turn Pattaya etc. into an area for baptist family church camp, yea certainly seems in the works and screw you do-gooders that think that's great, crawl back in your troglodyte hole. For many of those cheering on these "reforms" be careful what you wish for, it can and will come back to bite you in the ass. How did that go, something like first they came for.......

You know exactly what's next. Why be coy? They CONFISCATE THE MONEY IN YOUR BANK ACCOUNTS!!! And after that, there's only the mopping up: Gestapo raids of whereUstay--apt/hotel room/wife's house--and searching the closets, ceiling panels, under the mattresses. Few have safety boxes, but of course those will be looted.

RUN. NOW. (And then post in some other forum. )

If against all common sense and brilliant expert forum advice, you foolishly remain in Thailand (why? CAMBODIA!) where you're unwanted (sniff! , always remember the the TV forum poster Primal Laws Of Survival In Thailand:

1. Never invest in anything you aren't ready to lose;

2. Never own more than you can carry with you;

3. Keep your suitcase packed at all times.

Sorted! Next.

P.S. Troll bait of the month, this topic. Great laughs.

80 Baht sent daily from England for 2 chicken rice meals with free water. I'm 100% in agreement with you. Other than I have no suitcase to pack.

Who needs more than 2 pair of under crackers ? the dirty pair work well as a hat also.

[Rorri]

ldnguy, on 22 Aug 2014 - 11:43, said:

chooka, on 22 Aug 2014 - 07:43, said:

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.

Wrong. You invest 49%, you own 49%. No-one is forcing you to invest 100%. If you don't like the rules, then invest elsewhere.

What planet are you on..... your comment is stupid to say the least. You seem to miss that in many cases you invest 100% but own 49%.

[bertty]

Well then NO ONE should ever have been telling any foreigner he could own land in Thailand.

I wont argue with that. Unfortunately lies and deception seem to be par for the course in many Thai business transactions, especially if farangs are involved.

Yes terrible isn't it ?

That sort of thing would never happen in the real world. Could you imagine the president of the most powerful nation on earth ever getting voted in, in a way that wasn't 100% legit ?

Somebody told me the other day the Grand Palace was shut, I had a lovely tour of the shops and bought loads of stuff. Only to find out I had been lied too.

None of it my fault of course.

Why would I read the legal pack if someone had already told me the truth.

[Thai at Heart]

Well then NO ONE should ever have been telling any foreigner he could own land in Thailand.

I wont argue with that. Unfortunately lies and deception seem to be par for the course in many Thai business transactions, especially if farangs are involved.

So all those lawyers who facilitated the set up of all these foreign companies with silent partners were facilitating breaking the law.

Aside from the fact it would not be very good for their life expectancy I would suggest that any foreigner caught up in this with a house involved, should sue the lawyer and developer who encouraged this practice.

Any lawyer should have to prove that they clearly explained the law to the foreigner. I feel very sorry for anyone caught up in this in Thailand with a property.

If the govt really go through with it I hope that it sparks a drop in property prices so large it causes a 97 default. I don't wish ill on anyone often but this law is so xenophobic I hate it.

[JSixpack]

First farangs are being blamed of working illegally and trying to avoid paying taxes then you go to a lawyer and ask how to set up a proper business and you are told that you need to have 4 nominees and pay every month for their social security. No matter if they show up or not, since you have no need of those 4 people for a one man business you do as told, as the lawyer says in Thailand this is "illegal legality" .

Now this is also not possible thus back to the illegal working and not being allowed to pay taxes here or go to the neighboring country. No other choice.

Yep, that's ALL there is. No other choices. Only illegals can stay here now.

Amazing Thailand!

[bertty]

Well then NO ONE should ever have been telling any foreigner he could own land in Thailand.

I wont argue with that. Unfortunately lies and deception seem to be par for the course in many Thai business transactions, especially if farangs are involved.

So all those lawyers who facilitated the set up of all these foreign companies with silent partners were facilitating breaking the law.

Aside from the fact it would not be very good for their life expectancy I would suggest that any foreigner caught up in this with a house involved, should sue the lawyer and developer who encouraged this practice.

Any lawyer should have to prove that they clearly explained the law to the foreigner. I feel very sorry for anyone caught up in this in Thailand with a property.

If the govt really go through with it I hope that it sparks a drop in property prices so large it causes a 97 default. I don't wish ill on anyone often but this law is so xenophobic I hate it.

I once bought a house in India, well when I say bought I mean I paid out lots of money and then read after I would never be able to own the house.

I pulled out of the deal having lost 10 thousand pounds and still have 9 thousand in an Indian back account I cant access. Tho I might go there next year to see if I can get at it.

Who do I blame ?The smarmy lawyer who lied to me,, the smarmy salesman who sold me the house... Or the idiot who sent loads of money to India having done little or no homework...I.e. me...Yup I blame me...

As the man says don't spend what you cant afford and don't blame others for your own <deleted> ups.

[loppylugs1]

I am going to pray,pray for all those that encouraged property ownership here ,especially Thailand. You have sinned.

Dear Father ,please help these unfortunates in their hour(s) of need

Thy Kingdom come,

Thy will be done

In Patts and elsewhere

(well close enough) how you say JSiX r?

[loppylugs1]

Well then NO ONE should ever have been telling any foreigner he could own land in Thailand.

I wont argue with that. Unfortunately lies and deception seem to be par for the course in many Thai business transactions, especially if farangs are involved.

So all those lawyers who facilitated the set up of all these foreign companies with silent partners were facilitating breaking the law.

Aside from the fact it would not be very good for their life expectancy I would suggest that any foreigner caught up in this with a house involved, should sue the lawyer and developer who encouraged this practice.

Any lawyer should have to prove that they clearly explained the law to the foreigner. I feel very sorry for anyone caught up in this in Thailand with a property.

If the govt really go through with it I hope that it sparks a drop in property prices so large it causes a 97 default. I don't wish ill on anyone often but this law is so xenophobic I hate it.

I once bought a house in India, well when I say bought I mean I paid out lots of money and then read after I would never be able to own the house.

I pulled out of the deal having lost 10 thousand pounds and still have 9 thousand in an Indian back account I cant access. Tho I might go there next year to see if I can get at it.

Who do I blame ?The smarmy lawyer who lied to me,, the smarmy salesman who sold me the house... Or the idiot who sent loads of money to India having done little or no homework...I.e. me...Yup I blame me...

As the man says don't spend what you cant afford and don't blame others for your own <deleted> ups.

Me too.

but I sold right on the moment the knife came down.

gees was I lucky

[NoBrainer]

I wonder if this has anything to do with all of those monstrous condominium buildings going up all over Pattaya by the foreign controlled development companies?

I wonder if the first companies that they go after will be these ones that have been buying up large swaths of land to develop? There seems to have been some

publicity in the last week over a rather large condominium being built on Pattaya beach, by the Tulip Group, who has a number of other large projects as well.

Maybe this large scale building / development controversy is what has triggered this scrutiny of foreign held companies.

[Alwyn]

I've never understood why having nominee shareholders in Thailand is illegal? It's common practice in most countries, it's sometimes a reward for services rendered or a gift or simply because the owner of the company doesn't want his name down as a shareholder. I understand the thinking behind it when it comes to forming a company to own land & house but it's already illegal for a foreigner to do that in Thailand. Seems like a sledge hammer to crack a nut. If form a company for whatever purposes (except land & house of course) why can't I give shares to who I want? Maybe I want to make a gift of shares because of a performance based incentive? I see no obvious reasons for this. I can get people to invest money in my company and award shares for that but id people invest experince or their contact network which will make the company more successful I cannot reward them with shares?

[bertty]

Condos going up all over Pattaya ... You should take a walk along Sukhumvit road in Bangkok. Its makes Pattayas construction industry look like a lego set.

Edited August 22, 2014 by bertty

[VINCENT2012]

crackdown on foreign business people who use Thai Nominee Shareholders to effectively control Thai companies.

that must be a silly joke......ask any thai share holders abroad to put their own money in a foreign business and country ...to build a business and tell them after not to be the owner and the controller....

nobody does that! it is nonsense!

thats why nobody invest in thailand, it is not worth it.... or only when they have family here and they want to stay here , so they do it trough their relatives...but of course they want to controll their business it is their money..... what a stupidity!

[IAMSOBAD]

Anyone with knowledge please tell us a good country to put our investment dollars!

[MobileContent]

Shoot themselves in the foot because of silly childish laws.

I hope TOYOTA and HONDA and PIZZA COMPANY and every foreign company slam the door and move on.

SAVE FACE LOSE MONEY new Thai slogan.

Toyota and Honda are BOI promoted which means they can own 100% of the shares and do not need nominees.

As for the Pizza Company aka Minor Corp they are Thai.

[bertty]

Anyone with knowledge please tell us a good country to put our investment dollars!

Why not America, it always seems to be the benchmark used on here as to how Thailand should do business.

[Jim walker]

And now Thai people go abroad and invest your money in foreign countries like property purchase would be a good idea.

[Kudel]

crackdown on foreign business people who use Thai Nominee Shareholders to effectively control Thai companies.

that must be a silly joke......ask any thai share holders abroad to put their own money in a foreign business and country ...to build a business and tell them after not to be the owner and the controller....

nobody does that! it is nonsense!

thats why nobody invest in thailand, it is not worth it.... or only when they have family here and they want to stay here , so they do it trough their relatives...but of course they want to controll their business it is their money..... what a stupidity!

Foreign criminals have been using this setup to launder their ill gotten gains in property and such .

There is a britisch investigative journalist based in Bangkok exposing a few of these "upstanding" citizins look up his website can't provide links as per tv rules

[Living in a cartoon]

I would be in favor of this, but the action needs to be reciprocal.

For my country, that would mean that no Thal national can own land, work without paid in capital of an appropriate amount and the hiring of four US citizens for every work permit, and duties of 100% to 300% of any Thai products imported.

Is it a deal?

[LennyW]

I cannot stand this any longer,the heartache ,the suicides,the utter horror of losing everything.

i am past caring I just want out of Thailand

Pull yourself together man!!!

[tomacht8]

Thaivisas run and owned by a foreigner innit ?

and be careful here. No post legal advice,

maybe you steal the work of a Thai lawyer.

Exactly from the same thai lawyer who has told you five years ago, to own a property with an LTD is a loophole, but it's legal.

Edited August 22, 2014 by tomacht8

[Thai at Heart]

Well then NO ONE should ever have been telling any foreigner he could own land in Thailand.

I wont argue with that. Unfortunately lies and deception seem to be par for the course in many Thai business transactions, especially if farangs are involved.

So all those lawyers who facilitated the set up of all these foreign companies with silent partners were facilitating breaking the law.

Aside from the fact it would not be very good for their life expectancy I would suggest that any foreigner caught up in this with a house involved, should sue the lawyer and developer who encouraged this practice.

Any lawyer should have to prove that they clearly explained the law to the foreigner. I feel very sorry for anyone caught up in this in Thailand with a property.

If the govt really go through with it I hope that it sparks a drop in property prices so large it causes a 97 default. I don't wish ill on anyone often but this law is so xenophobic I hate it.

I once bought a house in India, well when I say bought I mean I paid out lots of money and then read after I would never be able to own the house.

I pulled out of the deal having lost 10 thousand pounds and still have 9 thousand in an Indian back account I cant access. Tho I might go there next year to see if I can get at it.

Who do I blame ?The smarmy lawyer who lied to me,, the smarmy salesman who sold me the house... Or the idiot who sent loads of money to India having done little or no homework...I.e. me...Yup I blame me...

As the man says don't spend what you cant afford and don't blame others for your own <deleted> ups.

Blame yourself if you like. I haven't got caught up in it myslef either.

However, there have been lawyers advertising this company route to ownership for decades and everyone nods sagely and says "no ploblem".

Not everyone gets off a plane with access to reliable lawyers and understands how the system in Thailand is so corrupt.

[Rorri]

loppylugs1, on 22 Aug 2014 - 10:44, said:

Rorri, on 22 Aug 2014 - 10:37, said:

carstenp, on 22 Aug 2014 - 08:24, said:carstenp, on 22 Aug 2014 - 08:24, said:

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

Please, show me where, in Thai law, that it was/is illegal. As far as I can determine ALL conditions were met. If they wanted to make it "illegal" Thailand had ample opportunities to close any legal loop holes. As far as I'm concerned it appears Thailand now believes it has everything it needs, from foreign investment, and now wants it all to itself.

Thailand took a blind eye to this,new govt will not. Never was legal for farang to own land,never mind the house that stood on it. Even the company that owned the land/house was Thai owned,so farang owned nothing

Loopholes were created to shovel more money into the scheme of things,now farang going to get fingers burnt

Um, it is "legal" to own the house...and according to law, through a company to own land. The loophole is there, and allowed by the government.

[chris2004]

This was always illegal. If people took the risk and now get caught out it's their own fault. Their country, their rules and laws.

[Rimmer]

Baiting posts, troll posts, flames and quoted replies removed

[JSixpack]

<CENSORED> (But it was good stuff )

Edited August 22, 2014 by JSixpack

[Living in a cartoon]

Well then NO ONE should ever have been telling any foreigner he could own land in Thailand.

I wont argue with that. Unfortunately lies and deception seem to be par for the course in many Thai business transactions, especially if farangs are involved.

So all those lawyers who facilitated the set up of all these foreign companies with silent partners were facilitating breaking the law.

Aside from the fact it would not be very good for their life expectancy I would suggest that any foreigner caught up in this with a house involved, should sue the lawyer and developer who encouraged this practice.

Any lawyer should have to prove that they clearly explained the law to the foreigner. I feel very sorry for anyone caught up in this in Thailand with a property.

If the govt really go through with it I hope that it sparks a drop in property prices so large it causes a 97 default. I don't wish ill on anyone often but this law is so xenophobic I hate it.

Mai Pen Rai, for the lawyers at least. Professional liability is just another of those ridiculous farang legal concepts over here. Dream on...