Thais warned not to act as nominees of alien businessmen

[Mot Dang]

western countries should reciprocate Thailand rules on Thais doing business , see how they like being Alienated.

Maybe the reciprocation should also be extended to land ownership, ninety day reporting, access to passports etc etc

Maybe the reciprocation should also be extended to land ownership

​You have hit the nail on the head. It really makes me cringe when falang are given such a hard time about buying real-estate in Thailand, but Thai politicians and the elite and able to buy expensive real-estate in other countries with no problem at all.

[Autonuaq]

if the look at the real estate marked where foreigner are involved in then most of those companies not comply.

foreigners will loose a lot of invested money and there properties.

Welcome to Thailand the land withthe smile. ....

ahh.... you invest in to our contrary we guarantee your profit on your investment

we have good projects and can secure the investment too.

now they look into the setup companies and nominees

........

smart way of the Thai to get money and property.

[khun custard]

Most "local" wrong-doers, literally all politicians and most oligarch business empires are ethnic Chinese from the (today's) Red North. The ethnic Thai buffalo-plows the Northeast on his debt-ridden land almost unable to service the loan sharks de facto highway robbery business practices and gets furthermore screwed by all those dodgy middlemen - the real problem here is not the "alien" load but rather their latest avalanche of migrants some +/- 60 years ago.

An interesting comment.

It would be a very interesting to have a better understanding of the country's evolution from of "old school, Thai to the influences "post, Great March" Chinese immigrants (considering the powerful Thai Chinese business and culture here)

Coming from Australia, it is clear to me that the 2nd generation of immigrants, the way they assimilate into the society and culture while retaining their heritage, can be a real game changer in a relatively short space of time.

More interesting will be the effect in 15-20 years when the 50/50's - European" Thai kids (with Thai citizenship) with a better education, worldliness and varying levels of exposure to the feeling of resentment foreigners get when living here; albeit, they are married to a Thai and have invested their life and savings here.

Teach you children well!

Edited February 23, 2016 by khun custard

[useronthenet]

The writing has been on the wall for decades, and still foreigners come to invest, do business, and buy property. Clearly they must accept the risks associated with Thailand, and must accept when it all goes pear-shaped.

[DeeMak9]

I am a little confused. When i started a company I HAD to have at least two thai people as nominees. They, on paper owned 51% of the business. So now, my understanding of this article is. I cannot open a business in a tourist area. This is where I had my restuarant. So confusing these people.

Technically, you are not allowed to own a restaurant in Thailand. Yes, sad, but true.

[Taffyfromflint]

western countries should reciprocate Thailand rules on Thais doing business , see how they like being Alienated.

Maybe the reciprocation should also be extended to land ownership, ninety day reporting, access to passports etc etc

Should be 100% reciprocal. Thai restaurants should require a national of the country owning 51%. No property can be bought by a Thai. Just the same as we have in Thailand. If it is good for us then it must be good for Thai's in our countries.

In Oz the government(s) are selling the country off to the highest bidder, which at the moment is the Chinese. Do not upset Khun Chin while he holds a bucket of gold in front of you. And don't talk about the war when the then enemy rewarded Thailand with expanded boundaries. Reciprocation will never happen at least not by a western government (can't speak for the US tho').

[Taffyfromflint]

I just can't believe these people, foreigners bringing in buckets of cash, paying taxes and employing Thai. They must really hate us, or is it envy?

It's Jenvy

[LannaGuy]

xenophobic people Thais

rich thais buy up football clubs, property and businesses abroad and Thais can get citizenship on marriage yet they protect their feudal kingdom with grasping fingers in the name of 'protecting Thais' what hypocrisy

[Bernard Flint]

Chinese are buying big time in Chiang Mai!

So they have to be careful, and carry a copy of passport/visa/ work permit with them at all times

[klauskunkel]

Thais warned not to act as nominees of alien businessmen in setting up businesses, or they may face heavy fines and imprisonment.

However, Ms Pongphan, director-general of Business Development Department, said that it is traditional and in line with government policy for high ranking Police and Army personnel to own and run shady businesses. These practices will continue to enjoy the full support of the department. Thank you three times.

[jmccarty]

Who owns the Sheraton, Le Meridien, JW Marriott, Four Seasons etc? I don't see these tourism juggernauts operating under Thai nominee companies or Thai majority share holdings. Maybe I am wrong?

[motyduke]

And very soon it Will be about houses and real estate bought in thaï names . Wife or not , it is illegal here . Land department want to crack down on foreigner who give money to buy houses

[animatic]

More jingoism from people who don't understand their jobs.

Note to:

Pongphan Jianviriyaphan, director-general of Business Development Department

Business development does not happen without an influx of capital,

and no one invests much capital without reasonable controls on how it is invested.

If Thailand had the cash to develop completely on it's own you wouldn't have a job,

but you are making it harder to do it....

Yes, let the rest of the world treat Thais like

they treat their foreigners as investors and residents,

and see how they like it.

[NickJ]

Big companies get special deals. Many go through the BOI or use the American Treaty.........this bell gets a ring every year. Panic of people who own companies that own there house freak out. Then you get all the I would never posts. Then nothing untill the next bell ringer starts his or her new job.

[LukKrueng]

I am a little confused. When i started a company I HAD to have at least two thai people as nominees. They, on paper owned 51% of the business. So now, my understanding of this article is. I cannot open a business in a tourist area. This is where I had my restuarant. So confusing these people.

The 2 Thai people were supposed to be partners, not nominees.

[ALLSEEINGEYE]

western countries should reciprocate Thailand rules on Thais doing business , see how they like being Alienated.

Maybe the reciprocation should also be extended to land ownership, ninety day reporting, access to passports etc etc

Add residency and citizenship as well

[hugh2121]

western countries should reciprocate Thailand rules on Thais doing business , see how they like being Alienated.

Maybe the reciprocation should also be extended to land ownership, ninety day reporting, access to passports etc etc

And don't forget import taxes.

[motyduke]

It is not only à ring Bell as every year . I am sure all these laws never applied Will be enforced

[ALLSEEINGEYE]

Who owns the Sheraton, Le Meridien, JW Marriott, Four Seasons etc? I don't see these tourism juggernauts operating under Thai nominee companies or Thai majority share holdings. Maybe I am wrong?

A couple of those you names are owner by the Indians that have been here for a very long time and were given Sukhumvit back when it was worth nothing.

But you are correct in some of the others such as some of the Marriotts and Fourseasons etc some of those are owned by Minor group (owned by an American).

Many other hotels have complete foreign investment such as the Sofitel 15 which is owned by a Bahrainy.

These company ownership/land ownership issues seem only to apply to the small business man that cannot pay his way through the system.

[Christie Paul]

The Business Development Ministers of Cambodia, Laos, Myanmar, Philippines, Indonesia and Malaysia would like to express their heartfelt thanks to Thailand for the way in which they have sabotaged their own economy and diverted investment, jobs and activity towards their neighbours.

A spokesman of the group said that Thailand should be congratulated for their immigration laws, bureaucratic entanglements for foreign investors, amongst other disincentives, at which point they all cheered and raised their glasses and gave a toast in honour of their benefactor.

[F4UCorsair]

So Thais call them aLiens

In Japan they're called aRiens.

[oldsailor35]

Its those nasty horrible foreigners again!

Wait a minute ! Only two were guilty.

[seancbk]

I am a little confused. When i started a company I HAD to have at least two thai people as nominees. They, on paper owned 51% of the business. So now, my understanding of this article is. I cannot open a business in a tourist area. This is where I had my restuarant. So confusing these people.

The article is talking about 'The Tourism Business' and 'Real Estate Businesses'. It has nothing to do with restaurants, bars or any other business type.

Thailand does not allow non Thais to sell tours to tourists, or provide tours to tourists. That job/business is strictly limited to Thai people only.

They believe that only a Thai person should be able to explain about Thai temples, history, etc

There are already at least two laws in Thailand that restrict foreign ownership of and participation in businesses providing tourism services: (1) the relatively well known Foreign Business Act; and (2) the lesser known, but more restrictive, Tourism and Guide Business Act.

1.2 Restricted Business Activities under the Foreign Business Act of 1999

List 1 – Businesses that foreigners are not permitted to engage in for special reasons:

– Newspaper business, radio-broadcasting station or radio/television business.

– Farming, cultivation or horticulture.

– Animal husbandry.

– Forestry and timber conversion from natural forests.

– Fisheries, especially fishing in Thai territorial waters and in specific economic areas of Thailand.

– Extracting Thai herbs.

– Trade and auction sale of Thai antiques or objects of historical value.

– Making or casting Buddha images and alms bowls.

– Trading in land. This covers Real Estate Businesses.

List 3 – Businesses in which Thais are not ready to compete in undertakings with foreigners: And therefore because Thais are not ready to compete, Foreigners are NOT allowed to operate businesses in these areas

– Rice milling and flour production from rice and plants.

– Fisheries, specifically breeding of aquatic creatures.

– Forestry from re-planting.

– Production of plywood, veneer, chipboard or hardboard.

– Production of lime.

– Accountancy.

– Legal services.

– Architecture.

– Engineering.

– Construction, except:

· Construction of infrastructure in public utilities or communications requiring tools, technology or special expertise in such construction, except where the minimum foreign capital is 500 million baht or more.

· Other construction, as prescribed in regulations.

– Agency or brokerage, except:

· Brokerage or agency of securities or service related to future agricultural commodities futures or financial instruments or securities.

· Brokerage or agency for the purchase/sale or procurement of goods or services necessary to production or providing services to affiliated enterprises.

· Brokerage or agency for the purchase or sale, distribution or procurement of markets, both domestic and overseas for the distribution of products made in Thailand, or imported from overseas in the category of international business, with minimum foreign capital of not less than 100 million baht or more.

· Other brokerage or agency activities, as stipulated in ministerial regulations.

– Auctioneering, except:

· Auctioneering in the manner of international bidding, not being auctions of antiques, ancient objects or artifacts that are Thai works of art, Thai handicrafts or antique objects, or with Thai historical value.

· Other types of auctioneering, as stipulated in ministerial regulations.

– Domestic trade in local agricultural products not prohibited by law.

– Retailing all categories of goods having of less than 100 million baht capital in total or having the minimum capital of each shop of less than 20 million baht.

– Wholesaling, all categories of goods having minimum capital of each shop less than 100 million baht.

– Advertising.

– Hotel operation, excluding hotel management.

– Tourism.

– Sale of food and beverages.

– Planting and culture of plants.

– Other services, except those prescribed in the ministerial regulations.

[trogers]

Who owns the Sheraton, Le Meridien, JW Marriott, Four Seasons etc? I don't see these tourism juggernauts operating under Thai nominee companies or Thai majority share holdings. Maybe I am wrong?

All these names are the operators of the hotels owned by Thais...

Aliens can run the operation of the hotels, but not own them.

[chainarong]

Alien Businessmen , interesting, not Expat or foreign businessmen, such backwardness in pronunciation tends to indicate to a certain degree that Thailand is a backward thinking country in more ways than what one would assume, aliens , should some knowledge of ET would be in order when doing business in Thailand, perhaps Matt Damon from Mars could assist in the lorry load of useless paperwork.................................

[MoversandShakers]

What else can we come up with to bring the ship down?

[seancbk]

I am a little confused. When i started a company I HAD to have at least two thai people as nominees. They, on paper owned 51% of the business. So now, my understanding of this article is. I cannot open a business in a tourist area. This is where I had my restuarant. So confusing these people.

The article is talking about 'The Tourism Business' and 'Real Estate Businesses'. It has nothing to do with restaurants, bars or any other business type.

Thailand does not allow non Thais to sell tours to tourists, or provide tours to tourists. That job/business is strictly limited to Thai people only.

They believe that only a Thai person should be able to explain about Thai temples, history, etc

There are already at least two laws in Thailand that restrict foreign ownership of and participation in businesses providing tourism services: (1) the relatively well known Foreign Business Act; and (2) the lesser known, but more restrictive, Tourism and Guide Business Act.

1.2 Restricted Business Activities under the Foreign Business Act of 1999

List 1 – Businesses that foreigners are not permitted to engage in for special reasons:

– Newspaper business, radio-broadcasting station or radio/television business.

– Farming, cultivation or horticulture.

– Animal husbandry.

– Forestry and timber conversion from natural forests.

– Fisheries, especially fishing in Thai territorial waters and in specific economic areas of Thailand.

– Extracting Thai herbs.

– Trade and auction sale of Thai antiques or objects of historical value.

– Making or casting Buddha images and alms bowls.

– Trading in land. This covers Real Estate Businesses.

List 3 – Businesses in which Thais are not ready to compete in undertakings with foreigners: And therefore because Thais are not ready to compete, Foreigners are NOT allowed to operate businesses in these areas

– Rice milling and flour production from rice and plants.

– Fisheries, specifically breeding of aquatic creatures.

– Forestry from re-planting.

– Production of plywood, veneer, chipboard or hardboard.

– Production of lime.

– Accountancy.

– Legal services.

– Architecture.

– Engineering.

– Construction, except:

· Construction of infrastructure in public utilities or communications requiring tools, technology or special expertise in such construction, except where the minimum foreign capital is 500 million baht or more.

· Other construction, as prescribed in regulations.

– Agency or brokerage, except:

· Brokerage or agency of securities or service related to future agricultural commodities futures or financial instruments or securities.

· Brokerage or agency for the purchase/sale or procurement of goods or services necessary to production or providing services to affiliated enterprises.

· Brokerage or agency for the purchase or sale, distribution or procurement of markets, both domestic and overseas for the distribution of products made in Thailand, or imported from overseas in the category of international business, with minimum foreign capital of not less than 100 million baht or more.

· Other brokerage or agency activities, as stipulated in ministerial regulations.

– Auctioneering, except:

· Auctioneering in the manner of international bidding, not being auctions of antiques, ancient objects or artifacts that are Thai works of art, Thai handicrafts or antique objects, or with Thai historical value.

· Other types of auctioneering, as stipulated in ministerial regulations.

– Domestic trade in local agricultural products not prohibited by law.

– Retailing all categories of goods having of less than 100 million baht capital in total or having the minimum capital of each shop of less than 20 million baht.

– Wholesaling, all categories of goods having minimum capital of each shop less than 100 million baht.

– Advertising.

– Hotel operation, excluding hotel management.

– Tourism.

– Sale of food and beverages.

– Planting and culture of plants.

– Other services, except those prescribed in the ministerial regulations.

But, with the present administration do you know what 'may' happen next....?

No, nor did I claim to. I simply provided some clarification to a forum member who exhibited confusion over the content of a news item.

Personally, I'm not bothered as I don't think there will be any changes to large scale, legitimate businesses here and by that I mean businesses hiring lots of people, with significant revenues.

[MockingJay]

When will all we non-Thais be required to wear a yellow star stitched onto our clothing, with hefty fines and crackdowns implemented on those who refuse? Wouldn't it be fun to have nominees of part foreign owned Thai businesses parade in public wearing shirts or better signs reading "traitor", so that the common Thai can spit on and openly ridicule them? Wouldn't it be heaven if those bloody Farangs would simply wire all their money here without ever appearing in Thailand? Wouldn't you Thai people just love all that? I am sickened more and more by the day and wonder if I am alone...

[weegee]

Shouldnt it have read..."Alien warned not to act as Nominee to Thai Businessmen" ?

[lkv]

When will all we non-Thais be required to wear a yellow star stitched onto our clothing, with hefty fines and crackdowns implemented on those who refuse? Wouldn't it be fun to have nominees of part foreign owned Thai businesses parade in public wearing shirts or better signs reading "traitor", so that the common Thai can spit on and openly ridicule them? Wouldn't it be heaven if those bloody Farangs would simply wire all their money here without ever appearing in Thailand? Wouldn't you Thai people just love all that? I am sickened more and more by the day and wonder if I am alone...

For sickened Aliens, Thailand generously provides pharmacies and hospitals. At a cost.

You're not alone, many agree, except for some of the Thais here on the forum that play the same record: "If you don't like it, leave".

For those, I would just like to inform them the trend has already started a while back.

Some time ago they were complaining that Chinese are rude, to the extent that their government had to publish a "how to behave abroad" book.

The Russians weren't good either, cause they were Mafia. Or were they? Oh well irrelevant while the rouble is down.

But hey ya, alienate yourselves from Aliens, you can do very well without them I guess (not).

We should listen to the advice of a regular member here (will not name him) that advised that if we leave and take the money it's not like the baht would drop.

I would like to reiterate that we would not care at all what the value of the baht was once we left.

Edited February 23, 2016 by lkv