Thais warned not to act as nominees of alien businessmen

[elgordo38]

Thais being nominees for other Thais in dodgy businesses is a huge problem. Much more so than those fronting for foreigners.

Isn't this most prevalent in land sales. The rich buy up huge swaths of land under other names?

[elgordo38]

Chinese are buying big time in Chiang Mai!

Yes they own most of the condo's that have no lights on at night. My landlord is Chinese.

[cyberfarang]

But isn't there a way for Thais and foreigners to do something like this where they're not actually breaking the law. It's a loophole?

Doesn't really matter anyway. Laws are just made up and changed as they go along.

There are ways that Farlangs qualify to run businesses that most can`t afford to do. There are no loopholes. Idle threats have been made before and now it seems they mean what they say and say what they mean. Next it will be land, homes and businesses in Thai wives names and one BIG reason I refuse to invest in anything here I can`t own.

[FredNL]

The only alien business man I ever saw..

[torpedo1970]

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.

You hit it on the head i think.

Money number one.

They have already announced that they will confiscate any property that is linked to a company set up only for a "alien" to own a house.....

LOS the land of scams

[lkv]

You hit it on the head i think.

Money number one.

They have already announced that they will confiscate any property that is linked to a company set up only for a "alien" to own a house.....

LOS the land of scams

Actually, on that logic, once they are done with the Farangs, they will take the Chinese on a ride.

They probably assume most are naïve when it comes to how business is conducted in Thailand. And they are probably right. It's like the new golden goose.

[Baerboxer]

They really know how to kill things off. Just look at Pattaya so many businesses set up and operated by Farang, just sold off to Thais, Mostly because the Thai Landlord put rents up to an untradeable level, No head whatsoever for economics.

They are just not aware that the money that was around 7-8 years ago is just not there anymore, so instead of generating business, they just sit and twiddle their thumbs until it's time to pack up and go.

Who are these people at the top, running the country? Do they honestly believe that an Issan can serve and operate a business for Westerners better than a farang and that, that is better for Thailand.

The Old man that robed the country so much and inflicted atrocities really knew how to progress business and develop tourism. Now it is just sick

The foresight extends to about one inch further than their noses and is confined to tunnel vision slightly narrower than their eyes.

But, they ain't gonna change and blaming someone else is always the way out. Especially convenient when it's a foreigner with no rights.

[Asheron]

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

No, much easier way to make sure the third world country Thailand gets back in line... raise the import tax on any products made in Thailand by 10000% and refuse to give any thai any visas to any country.

[lkv]

Because of these recent developments ( coming from the Development department), that also affect Thai nominees income as well, I can regretfully confirm a Thai nominee has already strangled his girlfriend's cat because of stress. For more information consult the main Thaivisa Thailand News page.

[vukovar77]

This is the reason that the Tourism and Real estate business is on a down hill run.

These falangs are the cause of all the problems in Thailand.

Reasons to real estate business is "on a down hill run" are at first cos. condos and houses are overpriced and very low quality!Besides many "brokers and agency" are very greedy as well and pump prices up.Most real-estate brokers from my experience are not well educated too and many very lazy and not motivated!And of course lie to much with promises of good profit!!!I hope prices will plunge more 30-40% down on it fair value!

[seancbk]

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.................................

The word Alien is the correct word.

In law, an alien is a person who resides within the borders of a country and is not a national of that country.

[Jim walker]

Businesses susceptible to alien control these little green people from outer space are everywhere they must be destroyed or we will be taken-over by them and the earth as we know it destroyed forever. with there lack of safety knowledge we will all be dead soon from accidents if aliens ever take over.

[cyberfarang]

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.

Quote: smart way of the Thai to get money and property. - Exactly the opposite. Dumb way for Farlang to lose money and property. Everyone know`s the score, Farlangs are not going into this blind and forced to be financial backers on what they can`t own.

[billd766]

"...operating in tourism and real estate businesses ......"

If this includes a company owning house/land for a farang, it could have a widespread effect.

But but but it is perfectly safe.

The guy on the next barstool told me that when he sold me a 5 bedroom house on 10 rai of land and he swore it would be in my name so my girlfriend couldn't steal it from me.

[khunpa]

The hole just becomes bigger and deeper... doesn't it?

The Economy is in bad shape, foreign investment is way down and then a statement like this... Thai-logic at its best!

Edited February 23, 2016 by khunpa

[khunpa]

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?

Its pure frustration of the inability to do it themselves. Some things like making a successful business require taking risks, an education and thinking "out of the box".

When you can't do it yourself and also want to avoid self-criticism and facing reality, then its better to just go after the "bad-people"...

[aRobotnamedWAR]

she means you cant compete with the mafia branch which pretends to be the government.

explain to me how the Food and bev. company ... ran by one family... holds a monopoly?

WHo gets all that money form toll way? WHY IS this lady supporting MONOPOLIES??

[dcnx]

I've always felt the laws in Thailand should be reciprocated when Thais go abroad.

If I can't own land here, Thais should not be permitted to own land in my country. But dont stop there. They must also have constant check-in with immigration (or border runs), and ever changing visa rules, and so on.

If this were the case, you can bet the laws here would change real quick.

[Jessi]

Back in 06/07 I think.

Many expats had bought land in a Thai company using the 2 Thais as 51% holders of the company usually

they would just get some Thai give him a few Baht to be a share holder and to sign a release form

at the same time so the Falang could sell it when he wanted to.

Then one day out of the blue the Thai Gov said said any land sold or transferred the Falang must produce

the Thai share holders in person and the Thais had to prove where they got the funds to buy the land.

Many Falangs got caught out on this one. It was not a new law but one that had always been there and The Thais

decided to use it.

Why buy land in a country where you have no rights as a foreigner? They can move the goal post at any time.

[tomacht8]

Back in 06/07 I think.

Many expats had bought land in a Thai company using the 2 Thais as 51% holders of the company usually

they would just get some Thai give him a few Baht to be a share holder and to sign a release form

at the same time so the Falang could sell it when he wanted to.

Then one day out of the blue the Thai Gov said said any land sold or transferred the Falang must produce

the Thai share holders in person and the Thais had to prove where they got the funds to buy the land.

Many Falangs got caught out on this one. It was not a new law but one that had always been there and The Thais

decided to use it.

Why buy land in a country where you have no rights as a foreigner? They can move the goal post at any time.

Right.

Foreigners should stay away from such company structures, and from lawyers and land developers who like to sell these constructions.

Anyone who try to open a business, or buy land and houses will suffer sooner or later with this straw man solution.

Until here no legal certainty exists, one should not invest in Thailand.

[gandalf12]

It always makes me laugh when you read the properties advertised on TV. You would have to be out of your mind to even think of buying them

[GeorgesAbitbol]

funny to read some posters spitting on the overstaying and visa problems, stating they are bunch of illegals who should be deported while praising the nominees system and feigning to not understand why...

[Rorri]

It's interesting to point out, that in fact, there is NO law forbidding nominees, therefore, NO laws are broken.. So I fail to understand just what you would be charged with. Perhaps someone, in the media, could ask Ms Pongphan Jianviriyaphan, and enlighten us.

Edited February 23, 2016 by Rorri

[wabothai]

I live on Phuket and must say its a wonderful place. The only thing what goes on my bullocks is that its full of Thai people. This is really annoying.

Lived in quite a few places in the world. f.i. lived in the US for a long time, beautiful country, only there shouldn't be any Americans (Bushes, Trump, and the likes) living there. Lived in France; very beautiful country, only there shouldn't live any frenchmen.

Finally i figured out that there is something wrong with my assessment.

[NCC1701A]

as most people know, best not to invest here. too risky.

[aRobotnamedWAR]

she means you cant compete with the mafia branch which pretends to be the government.

explain to me how the Food and bev. company ... ran by one family... holds a monopoly?

WHo gets all that money form toll way? WHY IS this lady supporting MONOPOLIES??

[wabothai]

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.

Hotel Operation excluding management !?!?

My first trip to thailand was with a tour operator.

The foreign tourleader was a very knowledgable guy and very pleasant to be around.

To abide by the law there had to be a Thai guy present all the time.

The guy was really a nobody and didn't bother himself with nothing, just enjoying the free ride.

To go by George Carlin: Bullshit !!

[Jonmarleesco]

Well, send the businessmen back whence they came - Mars, presumably.

[tomacht8]

She warned Thais not to act as alien businessmen’s nominees in setting up businesses in Thailand or they may face heavy fines and imprisonment.

So what's with all the Thai lawyers who create these business structures, respectively sale them and also provide these Nominees in most cases?

The message is clear.
Foreigners should not do business in Thailand, not hire Thais and not buy land from/with dubious companies.
This says the director-general of Business Development Department from Thailand.

A clear statement to all foreigners not to invest in Thailand.
We have stopped all our planned investments in Thailand.

Edited February 23, 2016 by tomacht8

[Jonmarleesco]

I've always felt the laws in Thailand should be reciprocated when Thais go abroad.

If I can't own land here, Thais should not be permitted to own land in my country. But dont stop there. They must also have constant check-in with immigration (or border runs), and ever changing visa rules, and so on.

If this were the case, you can bet the laws here would change real quick.

Of course they would, especially if such reciprocation impacted those in charge, and those with too much money and influence, preventing them from buying overseas properties - not to mention a few football clubs.