webfact Posted March 24, 2015 Share Posted March 24, 2015 FOREIGN BUSINESS ACTSeven firms suspected of using local nomineesPetchanet PratruangkraiBANGKOK: -- Seven companies in Pattaya are suspected of breaching the Foreign Business Act (FBA) by having Thai nominees hold majority stakes, the Commerce Ministry's Business Development Department claims.Those firms will soon face an in-depth probe by the Department of Special Investigation (DSI).Pongpun Gearaviriyapun, director-general of the department, said two of the seven companies were in tourism-related businesses.She said that in cooperation with the DSI and Tourism and Sports Ministry, her agency investigated 43 suspect firms in Chon Buri province, and the probe determined that seven in Pattaya were highly likely to have breached the FBA.As part of the investigation, the Business Development Department has asked the suspect companies' shareholders to speak to the agency's legal officers. The department will also question the companies' directors and examine their documentation. If any have committed offences, their cases will be forwarded for prosecution.If found to be breaching the FBA, foreigners and Thai nominees can be subject to fines of Bt100,000 to Bt1 million and/or three years in prison.In cooperation with the Tourism Department and the DSI, the Business Development Department this year is closely scrutinising the travel industry, and other businesses listed in Annex III of the FBA. That annex protects certain businesses in which Thais are deemed not ready to compete directly with foreigners.The investigation has already found one travel agency in Bangkok in likely breach of the FBA. The probe is also targeting Samui, Hua Hin, Phuket and Chiang Mai.Pongpun said that although it is stringently examining companies' share structures, the department would relax some regulations, unlocking some businesses such as banking and insurance from Annex III.She said most firms conducted their business in accordance with the law. To create better understanding about the FBA, the department has sent legal teams to educate enterprises on how to do business transparently.Under the Foreign Business Act of 1999, Thailand does not allow foreign interests to hold more than 50 per cent of some types of businesses, such as telecommunications, rice milling, property development, media and tourism services. However, some foreigners have retained de facto control of such businesses by using Thai nationals as nominees. Source: http://www.nationmultimedia.com/business/Seven-firms-suspected-of-using-local-nominees-30256675.html -- The Nation 2015-03-25 Link to comment Share on other sites More sharing options...
ColdSingha Posted March 24, 2015 Share Posted March 24, 2015 foreign owned property development companies.. a foreigner would never do that LOL 2 Link to comment Share on other sites More sharing options...
Popular Post jaidam Posted March 24, 2015 Popular Post Share Posted March 24, 2015 The use of nominees in Thailand gained popularity a decade ago when the sitting PM normalized them as his way of skirting dastardly legal rules. To clarify rules concerning the use of nominees, judging by this article, if you are a small player, you are in deep trouble. If you are a billionaire - carry on as usual. 7 Link to comment Share on other sites More sharing options...
Popular Post NongKhaiKid Posted March 24, 2015 Popular Post Share Posted March 24, 2015 Months back Thai investors were advised the time was right for them to get into European companies that needed money urgently. Days ago the PM told Thai companies to start selling overseas by reducing prices and undercut local firms. Thai business practice, " we will do what we like wherever but foreigners here will be strictly controlled. " Hypocrisy or Thainess.? Same, same. 12 Link to comment Share on other sites More sharing options...
Popular Post BSJ Posted March 24, 2015 Popular Post Share Posted March 24, 2015 I guess their not seeing the big picture. Zenophobia must cause blindness to reason as well as fear of foreigners. 5 Link to comment Share on other sites More sharing options...
Popular Post ezzra Posted March 25, 2015 Popular Post Share Posted March 25, 2015 If the investigators will put for a minute, their bawl of noodle soup aside, and really look deeper they will find 7,000 such companies and not 7, however in must be said that the Thai government doesn't make it any easy for forefingers to work here and earn an honest living without the needs to circumvent the silly FBA.... 3 Link to comment Share on other sites More sharing options...
Popular Post Soutpeel Posted March 25, 2015 Popular Post Share Posted March 25, 2015 I am shocked at this news...only 7 companies... 3 Link to comment Share on other sites More sharing options...
pinkpanther99 Posted March 25, 2015 Share Posted March 25, 2015 I wonder if these seven companies are isolated cases or herald the start of the large scale crackdown which has been promised by various govts for years? There must be thousands of these 'companies' operating all over Thailand. Has their day finally come? Link to comment Share on other sites More sharing options...
Popular Post Squeegee Posted March 25, 2015 Popular Post Share Posted March 25, 2015 Let them chase off more foreigners every which way they can, and the last foreigner who hasn't already gone to Vietnam or Cambodia, please turn off the lights. 5 Link to comment Share on other sites More sharing options...
tio boomsinger Posted March 25, 2015 Share Posted March 25, 2015 scrutiny of tesco lotus share holding wouldnt be done in the light of day. Link to comment Share on other sites More sharing options...
SABloke Posted March 25, 2015 Share Posted March 25, 2015 I've never understood the issue with nominees: So some Thai person owns a majority stake in a company, but has no say in how the company's run. The company is stilll legally Thai owned though isn't it? It's like when childten inherit their parents' companies. Yes, they own the company, but 9/10 times they have very little to do with running the company. If I'm missing something regarding what a nominee is, please feel free to enlighten me. Link to comment Share on other sites More sharing options...
bangkoklawyer24 Posted March 25, 2015 Share Posted March 25, 2015 (edited) Just a re-publishing from http://www.nationmultimedia.com/business/Travel-agency-suspected-of-breaching-FBA-with-nomi-30254223.html? Same article, same author, same wording. Different day. Edited March 25, 2015 by bangkoklawyer24 1 Link to comment Share on other sites More sharing options...
BudRight Posted March 25, 2015 Share Posted March 25, 2015 I'm only surprised by the lack of amazement among Thais that they can own their own companies and land in Western countries. 1 Link to comment Share on other sites More sharing options...
Popular Post konying Posted March 25, 2015 Popular Post Share Posted March 25, 2015 What a better way to eliminate competition in tough times ? May be government should concentrate on all the thousands of thai owned business that do not pay any taxes , do not have any permits or licences , do not honour any warranties , do not pay social or even a minimum wage. 3 Link to comment Share on other sites More sharing options...
jpeg Posted March 25, 2015 Share Posted March 25, 2015 Just a re-publishing from http://www.nationmultimedia.com/business/Travel-agency-suspected-of-breaching-FBA-with-nomi-30254223.html? Same article, same author, same wording. Different day. Great click bait though Link to comment Share on other sites More sharing options...
craigt3365 Posted March 25, 2015 Share Posted March 25, 2015 The use of nominees in Thailand gained popularity a decade ago when the sitting PM normalized them as his way of skirting dastardly legal rules. To clarify rules concerning the use of nominees, judging by this article, if you are a small player, you are in deep trouble. If you are a billionaire - carry on as usual. I'll try to find the article, but some time back the current government stated they were going after these nominee companies because Thais were using them for "dastardly" reasons, as you stated. So it's not just foreigners who are doing this. I'm sure plenty of locals use this structure to hide illegally gotten gains????? Link to comment Share on other sites More sharing options...
trogers Posted March 25, 2015 Share Posted March 25, 2015 (edited) The use of nominees in Thailand gained popularity a decade ago when the sitting PM normalized them as his way of skirting dastardly legal rules. To clarify rules concerning the use of nominees, judging by this article, if you are a small player, you are in deep trouble. If you are a billionaire - carry on as usual. I'll try to find the article, but some time back the current government stated they were going after these nominee companies because Thais were using them for "dastardly" reasons, as you stated. So it's not just foreigners who are doing this. I'm sure plenty of locals use this structure to hide illegally gotten gains????? What article is needed? Have the world forgotten about those super rich drivers, maids and gardeners? Nor the phrase - It is just an honest mistake? Edited March 25, 2015 by trogers 1 Link to comment Share on other sites More sharing options...
madmitch Posted March 25, 2015 Share Posted March 25, 2015 I've never understood the issue with nominees: So some Thai person owns a majority stake in a company, but has no say in how the company's run. The company is stilll legally Thai owned though isn't it? It's like when childten inherit their parents' companies. Yes, they own the company, but 9/10 times they have very little to do with running the company. If I'm missing something regarding what a nominee is, please feel free to enlighten me. The issue is they don't invest any money. I set up a company 10 years ago using the nominee system. It was done through a prominent legal company in Bangkok and a major sponsor of this website. I had no idea it was wrong at the time. I never met the nominees; they literally are just names. I closed the company some time ago but had I run into trouble with the authorities over this I would have seriously considered a lawsuit against the firm that set up the illegal company. 2 Link to comment Share on other sites More sharing options...
Popular Post Suffinator Posted March 25, 2015 Popular Post Share Posted March 25, 2015 The use of Thai nominees can be found in both business and property ownership ... how many developers, lawyers and accountants are responsible for fraud? After all they knew what they were doing was illegal. During my years in the cesspit of Asia I was asked numerous times to buy property or go into business, my questions were always the same ... why would any sane individual engage in an illegal activity in a country where its authorities are nationalistic and protectionists? Why would any rational person hand over 51% of their assets to people known to be corrupt and dishonest? Why would any person with half a brain engage in any activity where the laws are set up to effectively fleece the foreigner? So is this the start of the national witch-hunt for foreigners who were stupid enough to go into business or buy property using a Thai nominee? If so then bring on the parade for I have no sympathy for the stupid but what amazes me is that these idiots think the Thais are dumb ... go figure because I doubt you'll see a Thai hand over 51% of their assets to a complete stranger and knowingly break the law at the same time. A fool and his money is soon parted. This move is almost certain to do more damage to foreign investment but the Thais know all to well there are a lot of very stupid foreigners getting off the plane who are ripe for the taking. 4 Link to comment Share on other sites More sharing options...
Strangebrew Posted March 25, 2015 Share Posted March 25, 2015 So this has do with Thai 's not being able to compete with others who go by the rules and regulations pay fair wages and benefits use the correct standards and practices as all others? 1 Link to comment Share on other sites More sharing options...
jcisco Posted March 25, 2015 Share Posted March 25, 2015 I think the real issue here is that Nominee holdings are entirely in the shadows due to their illegality. Other environments expect nominees to be listed as such and the identity of the shareholder to be filed or on file. I don't wanna get started, this topic erks me. Link to comment Share on other sites More sharing options...
mike324 Posted March 25, 2015 Share Posted March 25, 2015 Wasn't Telecommunication allowed back in the early 2000s, hence that is why Thaksin was able to sell his shares legally. Companies like DTAC already had more than 50% foreign ownership even before Thaksin sold his shares that caused an uproar. Link to comment Share on other sites More sharing options...
catweazle Posted March 25, 2015 Share Posted March 25, 2015 Thais who want to perform business in any other country than Thailand should be treated equally, not being allowed to own and have full control over their investments. This might teach them something... Thais only take, never give - this has to end and it will eventually as soon as ASEAN starts. There will be no foreign investors left willing to put money in a black hole they have no control over while Thailand will be flooded with better educated staff who actually have full control over written and spoken English and are willing to work harder for less than the Thais. It will be total mayhem and the Thais will not realize what came over them until they all are out of jobs and out of money. What goes around comes around and Thailand deserves a kick in the butt and a reality check badly. Reg. the nominees, the Thais know that only by turning a blind eye on the nominee thing they are able to "lure" (a word that is so hot right now in Thailand) more and more foreign investors into Thailand. This also is the reason why they only talk about 7 instead of 7.000 firms... Thailand - hub of BS 2 Link to comment Share on other sites More sharing options...
ronaldo0 Posted March 25, 2015 Share Posted March 25, 2015 Sounds like a great way to steal successful businesses back from farangs who have pumped loads of money into places !!! 1 Link to comment Share on other sites More sharing options...
Srikcir Posted March 25, 2015 Share Posted March 25, 2015 "the Foreign Business Act of 1999" A barrier to normal business relations in a global free enterprise environment. Let's see if the other ASEAN countries will adopt Thailand's xenophobia or retaliate by blocking Thai ownership of businesses in their countries. The FBA needs serious reform if Thailand is going to host any global businesses. Link to comment Share on other sites More sharing options...
Sviss Geez Posted March 25, 2015 Share Posted March 25, 2015 Months back Thai investors were advised the time was right for them to get into European companies that needed money urgently. Days ago the PM told Thai companies to start selling overseas by reducing prices and undercut local firms. Thai business practice, " we will do what we like wherever but foreigners here will be strictly controlled. " Hypocrisy or Thainess.? Same, same. As usual you (deliberately) fail to understand what is happening. Thailand has it's business laws as do European countries have theirs. Thailand is complying with those countrys' laws so it is only reasonable that foreign investors obey Thailand's business laws. Thai companies are not forced to do business in Europe, neither are foreign companies forced to trade here, it's a free choice. There is no hypocrisy, nor that ridiculous Thaivisa term, "Thainess" 2 Link to comment Share on other sites More sharing options...
JoeLing Posted March 25, 2015 Share Posted March 25, 2015 (edited) Thais who want to perform business in any other country than Thailand should be treated equally, not being allowed to own and have full control over their investments. This might teach them something... Thais only take, never give - this has to end and it will eventually as soon as ASEAN starts. There will be no foreign investors left willing to put money in a black hole they have no control over while Thailand will be flooded with better educated staff who actually have full control over written and spoken English and are willing to work harder for less than the Thais. It will be total mayhem and the Thais will not realize what came over them until they all are out of jobs and out of money. What goes around comes around and Thailand deserves a kick in the butt and a reality check badly. Reg. the nominees, the Thais know that only by turning a blind eye on the nominee thing they are able to "lure" (a word that is so hot right now in Thailand) more and more foreign investors into Thailand. This also is the reason why they only talk about 7 instead of 7.000 firms... Thailand - hub of BS I fully agree with you about Thai's should be treated equally as we are here in Thailand but don't blame Thais for it, petition and blame your own governments for allowing Thai nationals to have more rights in our countries then we have in theirs. Maybe instead of expecting Thais to learn from us, our governments and people should learn from them? It seams there is still a steady flow of foreigners who want to invest in Thailand despite all the restrictions on us, so they might not even be so wrong in protecting their interests. Edited March 25, 2015 by JoeLing Link to comment Share on other sites More sharing options...
Sviss Geez Posted March 25, 2015 Share Posted March 25, 2015 So this has do with Thai 's not being able to compete with others who go by the rules and regulations pay fair wages and benefits use the correct standards and practices as all others? No, it's to do with those who don't go by the rules and regulations and don't use the correct standards and practices as prescribed by law. This is nothing to do with wages or benefits. 1 Link to comment Share on other sites More sharing options...
Sviss Geez Posted March 25, 2015 Share Posted March 25, 2015 (edited) <script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script> If the investigators will put for a minute, their bawl of noodle soup aside, and really look deeper they will find 7,000 such companies and not 7, however in must be said that the Thai government doesn't make it any easy for forefingers to work here and earn an honest living without the needs to circumvent the silly FBA.... I am shocked at this news...only 7 companies... alt=rolleyes.gif> I wonder if these seven companies are isolated cases or herald the start of the large scale crackdown which has been promised by various govts for years? There must be thousands of these 'companies' operating all over Thailand. Has their day finally come? Thais who want to perform business in any other country than Thailand should be treated equally, not being allowed to own and have full control over their investments. This might teach them something... Thais only take, never give - this has to end and it will eventually as soon as ASEAN starts. There will be no foreign investors left willing to put money in a black hole they have no control over while Thailand will be flooded with better educated staff who actually have full control over written and spoken English and are willing to work harder for less than the Thais. It will be total mayhem and the Thais will not realize what came over them until they all are out of jobs and out of money. What goes around comes around and Thailand deserves a kick in the butt and a reality check badly. Reg. the nominees, the Thais know that only by turning a blind eye on the nominee thing they are able to "lure" (a word that is so hot right now in Thailand) more and more foreign investors into Thailand. This also is the reason why they only talk about 7 instead of 7.000 firms... Thailand - hub of BS alt=coffee1.gif width=32 height=24> 7 so far, the OP doesn't say they have stopped looking for others. Edited March 25, 2015 by Sviss Geez Link to comment Share on other sites More sharing options...
moe666 Posted March 25, 2015 Share Posted March 25, 2015 Let them chase off more foreigners every which way they can, and the last foreigner who hasn't already gone to Vietnam or Cambodia, please turn off the lights. hehehe more creative than Nail in the coffin Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now