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Today's Bk Post Front Page Story

Featured Replies

The new funding rules as reported on the front page of the Bangkok Post seem to have enormous implications for any foreign entity wanting to do business in Thailand from a small time bar owner to giants like Tesco Lotus.

What do people think are the implications and what do you actually think will happen?

From today's Bangkok Post:

Foreign firms uneasy about new venture funding rules

...

The Business Development Department last month announced that from Aug 15 Thai partners in all new companies with foreign shareholdings over 40% must declare their source of funds. Companies with at least one alien director must also make full disclosure of their funding.

The rule requires each partner or shareholder to identify bank documents or other evidence showing the source of funds.

...

Source: http://www.bangkokpost.com/News/29Aug2006_news03.php

  • Author

Should have thought of that

Thanks George

Enforcement of anti-money laundering rules. Probably no negative impact for investors with clean sources of funds. Just a little more paperwork.

  • Author
Enforcement of anti-money laundering rules. Probably no negative impact for investors with clean sources of funds. Just a little more paperwork.

Am I missing something in the regulation changes here? As I read the new regulations all joint ventures must now have at least 51% Thai capital but I find it hard to believe that Lotus, for example, would have put up that percentage of money to fund Tescos push into Thailand. However if Tescos did put up more than 49% surely they fall foul of the regulations?

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