Looking To Buy Land On Kohphangan Any Information ?

[katie_1]

Hi i have been looking to buy land for some time now on kohphangan and think i maybe found something but was told by lawyer was safer setting up a company to buy the land so have been looking through lots of posts on here past couple of days . I was originally told a few months back to have a company set 49/51% but from what i can see on the threads here its not a good idea.

My lawyers are now telling me 35/65% is acceptable and would be fine . I have searched on here and come up with this from another thread ..Can anyone shed some light on the article below and say if it would be acceptable or it just another way round things ..Any help would be great thanks!!

I am an English lawyer working for a Thai lawfirm primarily dealing with farangs wanting to purchase property in Thailand. I have worked in Samui and currently in Pattaya for the same firm for just over a year.

The current situation as regards land transfers is as confusing to me as to anybody as the situation is still evolving in relation to the directives issued by the Ministry of Interior. and what seems acceptable to the land office and Department of Business Development (Company's Registry) one week can change the next.

When I first arrived here the "acceptable" way for foreigners to transfer land was with a 49% shareholding in a Thai majority shareholder company with the foreigner's shares being preferential shares with a voting power of 10 votes per share and the Thai's shares being ordinary shares with a voting power of 1 per share. The Thai shareholders were members of staff and consequently nominees.

Possibly because of the Prime Minister's involvement with the Shin Corp Company and the use of nominee shareholders, it seems that the government are intent on stamping out the use of nominee shareholders, hence the first directive that was sent to the land offices in May.

The first reaction to that directive was to transfer the land to a pure Thai company, again using Thai staff as nominees, and as soon as the land was transferred, re-structure thecompany to bring in the foreign director/shareholder.

This was acceptable for a while until the August directive to the DBD made it clear that any company with a proposed foreign director/shareholder would be required to provide evidence of the Thai shareholders income and personal investment into the company.

The current "acceptable" method, according to the DBD, and this has only been related to me by Thai staff who deal with company registrations, is to form a 100% Thai company as before, transfer the land, and then re-structure the company but with the foreigner only having 35% of the shares.

The foreigner still retains control of the company by virtue of voting power. (350 votes against 65) although in practice there would never be 'real' meeting of the company.

[astral]

When my company was first set up I had a 35% share, on the lawyer's advice.

After the house was purchased that was adjusted to 49%.

This was 8 years ago.

With the recent announcements I would tread very carefully.

If you, as lawyer, cannot understand it, what chance do ordinary mortals have??

[sbk]

katie 1, the crackdown is because it is illegal to form a company just to buy land. If you have an active company doing business, then it would be legal, is my understanding of this issue.

[katie_1]

I am going to have a serious think about it all ..i dont think its any safer doing a 35/65% than a 49/51% ?.. Lawyer said it wont be looked at the same but who knows anymore i think the situation is really unstable at present and dont want to loose out on anything ..What is the land office like on the island? It very strict or are they pretty much the same throughout thailand ??

[katie_1]

Nobody know then if 35/65 % is safer with preference shares in place than having 49/61% i assume with preference shares also ?

[Dragonman]

Nobody know then if 35/65 % is safer with preference shares in place than having 49/61% i assume with preference shares also ?

I am not an expert on Company set ups, perhaps Sunbelt can confirm. My understanding however is that it doesn't matter what the percentages are, if you are a Director, which you will need to be, the Company is checked.

[sbk]

The grapevine amongst the locals is that Koh Phangan is the next one to be hit with a land office crackdown. Once they finish with Samui, that is. Don't know if that is true or not but that is the prevailing opinion amongst local Thais.

[Scottbiker1976]

Get a lease for that property you want and change it to a Co.ltd when the law is less strict then now in samui and checking everything out here for the moment, you can always change.

And by the way, Koh Phagnan, better invest somewhere else, it's not worth it if you buy to intend to sale again, and it will never be a 2nd samui.

Good luck

[Dragonman]

Get a lease for that property you want and change it to a Co.ltd when the law is less strict then now in samui and checking everything out here for the moment, you can always change.

And by the way, Koh Phagnan, better invest somewhere else, it's not worth it if you buy to intend to sale again, and it will never be a 2nd samui.

Good luck

This is not as easy as it sounds. There is no guarantee that once you have taken out a lease the lessor will allow you to change to Company purchase. This is Contract Law which is outside leasehold arrangements.

[bcross2001]

Get a lease for that property you want and change it to a Co.ltd when the law is less strict then now in samui and checking everything out here for the moment, you can always change.

And by the way, Koh Phagnan, better invest somewhere else, it's not worth it if you buy to intend to sale again, and it will never be a 2nd samui.

Good luck

This is not as easy as it sounds. There is no guarantee that once you have taken out a lease the lessor will allow you to change to Company purchase. This is Contract Law which is outside leasehold arrangements.

I seem to do everything backwards - so here goes.

What if - You work this the opposite way - your the company and want to lease to yourself? Can't you have virtually have the best of both worlds?

[Worried_sick]

Katie i would be very careful..I am no legal expert but have had some good advice from here regarding my husband (seperated) wanting to buy here but cant get him to listen and i can see a loss coming his way ...He was due to come home on saturday there but put off coming home untill today so dont know if hes went ahead and paid the deposit or had been having troubles with it all but oldest son reckons he has paid...He has been taken in by the whole place and heads in clouds...I had an email from him at the weekend saying he was coming back today and that the party is over and he doesnt want to come home but has to ..dont know what thats all about...Will let you know more when he comes back if he tells me that is !!...Be careful !!

[sbk]

it will never be a 2nd samui.

scottbiker, lets all hope so

[Worried_sick]

Katie_1 just a quick update ..My husband is not back till tomorrow now ..Seemingly went to the airport last night but they told him his flight is not till tonight ..He will be on his way home now ..I will let you know how he got on once hes back though !! I am hoping in a way something has stopped him buying or he has been put off but according to my son he thinks hes bought so we shall see and i will let you know ..i just think there is far too much uncertainty with what hes doing and gonna be in for a fall but he wont listen so have to leave him too it now ...I would certainly have a serious think though !!

[Sunbelt Asia]

Hi i have been looking to buy land for some time now on kohphangan and think i maybe found something but was told by lawyer was safer setting up a company to buy the land so have been looking through lots of posts on here past couple of days . I was originally told a few months back to have a company set 49/51% but from what i can see on the threads here its not a good idea.

My lawyers are now telling me 35/65% is acceptable and would be fine . I have searched on here and come up with this from another thread ..Can anyone shed some light on the article below and say if it would be acceptable or it just another way round things ..Any help would be great thanks!!

I am an English lawyer working for a Thai lawfirm primarily dealing with farangs wanting to purchase property in Thailand. I have worked in Samui and currently in Pattaya for the same firm for just over a year.

The current situation as regards land transfers is as confusing to me as to anybody as the situation is still evolving in relation to the directives issued by the Ministry of Interior. and what seems acceptable to the land office and Department of Business Development (Company's Registry) one week can change the next.

When I first arrived here the "acceptable" way for foreigners to transfer land was with a 49% shareholding in a Thai majority shareholder company with the foreigner's shares being preferential shares with a voting power of 10 votes per share and the Thai's shares being ordinary shares with a voting power of 1 per share. The Thai shareholders were members of staff and consequently nominees.

Possibly because of the Prime Minister's involvement with the Shin Corp Company and the use of nominee shareholders, it seems that the government are intent on stamping out the use of nominee shareholders, hence the first directive that was sent to the land offices in May.

The first reaction to that directive was to transfer the land to a pure Thai company, again using Thai staff as nominees, and as soon as the land was transferred, re-structure thecompany to bring in the foreign director/shareholder.

This was acceptable for a while until the August directive to the DBD made it clear that any company with a proposed foreign director/shareholder would be required to provide evidence of the Thai shareholders income and personal investment into the company.

The current "acceptable" method, according to the DBD, and this has only been related to me by Thai staff who deal with company registrations, is to form a 100% Thai company as before, transfer the land, and then re-structure the company but with the foreigner only having 35% of the shares.

The foreigner still retains control of the company by virtue of voting power. (350 votes against 65) although in practice there would never be 'real' meeting of the company.

You better have all your ducks in a roll when you are buying land with a company. So many things can go wrong. Is it possible for it to be done legal? Yes but IF you do it legal and are a true business.

Having 35% or 49% is no difference.

www.sunbeltasiagroup.com

[sbk]

ducks in a roll, sunbelt? For what? quicker eating?

[Dragonman]

ducks in a roll, sunbelt? For what? quicker eating?

No, quacker eating.