Nine tour companies in Phuket checked on suspicion of being proxies of foreign firms

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Nine tour companies in Phuket checked on suspicion of being proxies of foreign firms
The Nation

PHUKET: -- Tourist police and officials from four agencies jointly inspected nine tour companies on the Phuket island after the firms were suspected of being proxies of foreign investors.

Santi Pawai, chief tourism and sports office of Phuket, led tourist police, and officials from other agencies to check the nine firms in Phuket's Muang district.

The firms included Five Stars Sea Cruises Co Ltd, Amazing Bike Tour Co Ltd, and Dive Marine Co Ltd.

Following the inspections, Santi said all the firms failed to provide documents to identify the owners. They were given five days to provide proper documents or they would face a fine of Bt4,000.

Source: http://www.nationmultimedia.com/breakingnews/Nine-tour-companies-in-Phuket-checked-on-suspicion-30264594.html


-- The Nation 2015-07-16

[johng]

They were given five days to provide proper documents or they would face a fine of Bt4,000.

At first it looked like these firms where in serious trouble

[CiaranO]

Yea 4000 that's it ? No other repercussions ? Clowns

[stevenl]

They're on the radar, I think that's the scary part for them.

[Sviss Geez]

They were given five days to provide proper documents or they would face a fine of Bt4,000.

At first it looked like these firms where in serious trouble

Yea 4000 that's it ? No other repercussions ? Clowns

Clowns indeed.

The 4000 baht fine is just for not producing that required documentation, then they have to start worrying about the offence of being illegal nominees.

[sammygood]

guess the little thai cry babies went to report they stole their business

as competition is not a word in their dico

[lust]

You guys think the 4,000baht is a one time payment? Lol... This a good earner for somebody to come pick up their monthly take.

[FangFerang]

4000 baht?

Four thousand baht?

Four thousand baht ?????!!!!

[wabothai]

4000 baht?

Four thousand baht?

Four thousand baht ?????!!!!

per week !!

[wabothai]

Welcome foreign investors. You got 5 days.

[steelepulse]

I don't do business here, but what exactly is a proxy company for a foreign firm and how does this differ from a regular expat joe that comes and opens up a company ltd with 49% ownership and the other Thai shareholders holding 51%?

[stevenl]

I don't do business here, but what exactly is a proxy company for a foreign firm and how does this differ from a regular expat joe that comes and opens up a company ltd with 49% ownership and the other Thai shareholders holding 51%?

I know 3 of the visited companies, and would be very surprised if their paperwork is in order. And buy that I mean doing business from an address different from the registered address, not having the required 4 Thai staff for 1 workpermit (they would only pay 3 months social security prior to workpermit renewal to meet the check, not the legal requirement), etc.

All these 3 companies are also foreign owned, but I don't know their exact company setup.

[steelepulse]

As I asked before, "but what exactly is a proxy company for a foreign firm and how does this differ from a regular expat joe that comes and opens up a company ltd with 49% ownership and the other Thai shareholders holding 51%?"

I'm sure on paper the co ltd shows a foreign entity owning 49% and Thais owning 51%, so how does the gov't differentiate these under scrutiny from the thousands of others set up the exact same way?

[DrDave]

As I asked before, "but what exactly is a proxy company for a foreign firm and how does this differ from a regular expat joe that comes and opens up a company ltd with 49% ownership and the other Thai shareholders holding 51%?"

I'm sure on paper the co ltd shows a foreign entity owning 49% and Thais owning 51%, so how does the gov't differentiate these under scrutiny from the thousands of others set up the exact same way?

This is just a guess, but maybe in the same way they announced a few years ago, they would look for proxy Thai shareholders in companies setup for the purpose of buying land. That is, demand proof of how the 51% shareholders funded their share of the company's paid-in capital.

Years ago when setting up those dummy land-holding companies, university students without a baht to their name were often used as proxy shareholders.

[stevenl]

As I asked before, "but what exactly is a proxy company for a foreign firm and how does this differ from a regular expat joe that comes and opens up a company ltd with 49% ownership and the other Thai shareholders holding 51%?"

I'm sure on paper the co ltd shows a foreign entity owning 49% and Thais owning 51%, so how does the gov't differentiate these under scrutiny from the thousands of others set up the exact same way?

This is just a guess, but maybe in the same way they announced a few years ago, they would look for proxy Thai shareholders in companies setup for the purpose of buying land. That is, demand proof of how the 51% shareholders funded their share of the company's paid-in capital.

Years ago when setting up those dummy land-holding companies, university students without a baht to their name were often used as proxy shareholders.

Sounds good to me. They could also look for money transfers from abroad by the foreign shareholder(s).

But I don't think they'll get into that for these companies, too much trouble for not enough money. They'll probably get fined for some small infringements, like failing to change business address.