george Posted October 25, 2006 Share Posted October 25, 2006 Nominee crackdown halves new company registrations PHUKET: -- Only 76 new companies were registered in September – compared with 135 and 132 during the same month in 2005 and 2004, respectively – following the August 15 announcement from the Ministry of Commerce that rules regarding foreign partnerships would be strictly enforced. Veerachai Tantiwathanavallop, Chief of the PCRO, told the Gazette that the number of new companies registered is fewer than usual because of the ruling that all members listed as shareholders, specifically Thai investors, must present bank statements covering the six months to the formation of the company to prove that they are genuine investors, rather than merely “nominees”. “If a foreigner invests between 40% and 50% of the capital, or if the foreigner owns less than 40% of the capital but acts as the leader of the company by authorizing company activity or by representing it, then Thai investors in the partnership must show their bank statements,” said Veerachai. “Currently, however,” he added, “if the foreigner owns only 39%, and the Thai [shareholders] can conduct business for the company, then bank statements aren’t required.” “They – those setting up businesses – are scared because the officers are going to be more strict regarding nominees, and may halt the company registration,” he said. --Phuket Gazette 2006-10-25 Link to comment Share on other sites More sharing options...
cclub75 Posted October 25, 2006 Share Posted October 25, 2006 PHUKET: -- Only 76 new companies were registered in September – compared with 135 and 132 during the same month in 2005 and 2004, respectively – following the August 15 announcement from the Ministry of Commerce that rules regarding foreign partnerships would be strictly enforced. Nothing to worry about. It's only a 45 % fall. ... Maybe the coup has cooled off the willing of the courageous farang "entrepreneurs"... I mean, maybe it's not only the fault of the rules... Link to comment Share on other sites More sharing options...
tominchaam Posted October 25, 2006 Share Posted October 25, 2006 (edited) The numbers for September 2006 includes all new registrations of companies. It is likely the majority of those 76 companies registered in September are companies set up for other reasons than real estate. The real estate market might be slow at the moment but there are good reasons to assume it will come back soon again. To lease land is legal and new leasing “set-ups” are likely to be introduced soon by various financial companies including a company associated to TAT. Edited October 25, 2006 by tominchaam Link to comment Share on other sites More sharing options...
cclub75 Posted October 25, 2006 Share Posted October 25, 2006 The numbers for September 2006 includes all new registrations of companies. It is likely the majority of those 76 companies registered in September are companies set up for other reasons than real estate. The real estate market might be slow at the moment but there are good reasons to assume it will come back soon again. To lease land is legal and new leasing “set-ups” are likely to be introduced soon by various financial companies including a company associated to TAT. To say that investors could switch happily from a freehold situation, through full control of a thai company via nominees, to a lease scheme sounds a bit optimistic. Furthermore, which thai entitity would own the land ? Here, we have a trust issue. I would no trust a thai company acting like a "land holder", and granting "long lease", even if it had links with TAT. I mean I can understand that it could be the dream of TAT (an agency under constant LSD shoots to provide pink assessments, it's their job), they could probably convince a few insane western retirees. But again, difficult to imagine that we can boost the market with such solution. Anyway. The land ownership is only one part of the issue (even if in Phuket I agree it could be the main one). The main question is the control of a "thai" company with foreign shareholders. The stake is the Foreign Business Act. We need to have stats of companie registration on a national basis. Link to comment Share on other sites More sharing options...
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