Despite ‘one person, one company’ law draft, foreigners still can’t own businesses

[Basil B]

Must be because farangs aren't regarded as persons.

Yes, we are aliens...

[GAZZPA]

Given a choice between 100 foreigners griping about not being allowed to start their own business, and 99 foreigners griping about losing their retirement savings because they didn't quite get the intricacies of Thai business practices, I think they've made the humane choice. For everyone.

And if you add to that that sole proprieters will possibly be deemed legal albeit denying non Thai is a semi radical move for Thailand. Even so it invites the western situation where an individual registers a company, then pay themselves an exorbitant salary until such time as the company is declared bankrupt and then fades away to languish on the losses of others. Eliminating the complication of non Thai individuals who can run for home seems rational.

Citing foreign ownership in other countries ignores the fact that such ownership is regulated by stringent conditions.

Do you think Thai business owners don't milk their own registered companies with exorbitant salaries and bonuses and company cars and condos etc, etc,,? Think again fella.

[brling]

What I still will never understand is why foreigners whinge and whinge about not starting a business and not owning land. For Christs sake, enough already. This is not your country, these are their laws. their rules, don't like it...tough crappola. You are not in Kansas anymore. And that's not such a bad thing.

Stop whinging and get a life. Why are you Thai apologists never happy on this forum ?

Don't make me laugh. I am not a Thai apologist, that is such an ignorant response. I am just sick of reading over and over about foreigners who feel slighted, cheated,

So try to thicken your skin, or if a thread is too negative for your thin skin avoid it.

[GAZZPA]

A lot of people criticizing the stance on "investment in Thailand" when the word "investment" really has a very broad spectrum of application from being an ordinary shareholder, to being chairman of the board.

I agree with the draft proposal in that it is still inline with the government's definition of "foreign investment" which is not to be confused with "foreign ownership".

For all of you supposed entrepreneurs on this board, how many of you have actually tried to raise capital? When you did so were you willing to give up more than 51% of your company or did you just want someone who would help you with a boost of cashflow in return for dividends?

The topic is quoting that foreigners cannot own businesses, we all know foreign investment could mean the purchasing of company shares and a host of other things but thats not what this topic is about.

The issue is that a foreigner cannot be sole shareholder of a company in Thailand, simple.

As for raising capital well what if you don't need to? What if you have the money to start but simply don't want to give away 51% and lose control of your own company? So, your foreign cash never enters the country.

If you do need to raise capital and you can find Thai investors that you trust enough to own a majority share then great, but again, that's not what this topic is about. It's about the fact that you cannot invest your money here and be the majority or sole shareholder in the company.

[GAZZPA]

Thailand prides itself on never bring colonized. Why the hell would you think they would change? You will never own BUSINESS nor LAND! Remember that and stop pipe dreaming...

What I still will never understand is why foreigners whinge and whinge about not starting a business and not owning land. For Christs sake, enough already. This is not your country, these are their laws. their rules, don't like it...tough crappola. You are not in Kansas anymore. And that's not such a bad thing.

It's a debate about Thailand not allowing foreign business ownership, a lot of foreigners do have a view about this,, if you don't give a "crappola" then don't contribute to the post.

[GAZZPA]

Look after No1, i.e your own people first!

This is where the Western Word has/is going wrong.

At one time that might have been a reasonable thing to consider but far too late for that now.. Either get involved in Global trade and play the game or die,,, economically of course.

[GAZZPA]

it's not unique just to LOS.

I do recall it is no different in Malaysia, where no ferenghi cannot be in a business, unless it is owned by 51% or more by a Malay

In Fiji, the indigenous ran the (big-business-man) Indians out of town (many becoming refugees to Australia) , and gave it all to the locals

SudAfrika had countless property owners lose all their property, and often their lives, to the majority locals

Financial racism is a world-over problem

Please do not mention countries you have no knowledge of South Africa does allow one man businesses and yes also if you are not a South African, the rest is propaganda.

Foreigners can own businesses in Malaysia too and Hong Kong and Vietnam and even China.

[Dumbastheycome]

Given a choice between 100 foreigners griping about not being allowed to start their own business, and 99 foreigners griping about losing their retirement savings because they didn't quite get the intricacies of Thai business practices, I think they've made the humane choice. For everyone.

And if you add to that that sole proprieters will possibly be deemed legal albeit denying non Thai is a semi radical move for Thailand. Even so it invites the western situation where an individual registers a company, then pay themselves an exorbitant salary until such time as the company is declared bankrupt and then fades away to languish on the losses of others. Eliminating the complication of non Thai individuals who can run for home seems rational.

Citing foreign ownership in other countries ignores the fact that such ownership is regulated by stringent conditions.

Do you think Thai business owners don't milk their own registered companies with exorbitant salaries and bonuses and company cars and condos etc, etc,,? Think again fella.

I am well aware that they do. But with multiples of "ownership" liability for debt defaults creates issues of culpability. Sole ownership nullifies that issue to a theoretical point if and when adopted. Thus the applaud for this new "liberalized" sword maybe also applied to cut both ways. I avoid tort with thought.

[GAZZPA]

Must be because farangs aren't regarded as persons.

I'm sick and tired of these stupid comments. This is Thailand and The Thai gov't will do whatever they want to protect the business interests of their people.

We all know that. But some people have an opinion on it and some think it is short sighted of the country. If you're sick and tired of it then the simple solution is don't get involved in the debate.

[GAZZPA]

The real question should not be the nationality but the benefit to the (Thai)society. If a one (wo)man has a specific skills which can eventually help hundreds of Thais get a job or improve the life of Thai people then that should be more important than his nationality, because then he is not taking away jobs from Thais but CREATING jobs.

Completely agree, bring in the talent that can help the country and if that means foreign ownership then so be it. It's one of the simple restrictions they can build in. But now it's just a closed door so they stay away and go to a neighbouring country instead.

I think this is the most crucial part of why they are short sighted with this policy, thanks for bringing it up.

[GAZZPA]

Western Governments need to grow a set and reciprocate these rules to Thais .Then maybe things will change.

I'd prefer the reverse.

From my experience people who move to Australia and start a business work hard, contribute to the community, provide employment and generally abide by the law. Not saying they are perfect, but I definitely like to see opportunities being made available to legitimate business people. Business generally does more for the community than the average government.

I'd be happy if there were some restrictions on the type of business if deemed to be unfair competition, although it's hard to draw that line. Clearly allowing foreigners to sell somtum on the street is a no-no. Although I do think there are a number of other smaller businesses that could only benefit Thailand, e.g. small technology firms that provide employment and traineeships type opportunities. At present these things are really hard for the smaller operator and can't be 100% owned, like mine.... I want to provide a service, provide employment for Thais, provide training opportunities for Thai's, but the hoops I have to jump through are a nightmare!

Vietnam would love you,,,

[Shaunduhpostman]

Really, in most cases, they are helping foreigners by not allowing them to invest here.

[GAZZPA]

Thailand prides itself on never bring colonized. Why the hell would you think they would change? You will never own BUSINESS nor LAND! Remember that and stop pipe dreaming...

Never colonised because the Brits and the French agreed to leave it as a buffer between Burma and Vietnam. Large chunks of Thailand were ceded to the French to kep them at bay, but Thais conveniently forget that, or aren't aware of is as many Thais are simple people, or brainwashed into believing untruths.

Lets not forget the Japanese during WW2, they walked right in and stayed, the only reason it cannot be called colonised is because the Thais did a deal with the Japanese which was they can stay with no resistance as long as the Thais can maintain their own Government (presto not colonised). And of course the Japanese are still very much prevalent here today with businesses everywhere, including the big motor companies, Toyota has been here for nearly 60 years I believe.

[GAZZPA]

Brits get furious about Muslims wanting to change UK laws to sharia, so why do farangs insist on wanting the Thais to change their laws to accommodate farangs.

Pretty simple really, if you want a pretty hassle free existence in Thailand obey the laws. If you can't live with the laws then either don't come here, or leave if you are already here.

For the record, I have retired and don't want to work or own a business, so I'm here on a "retirement visa" (and yes I know it is not called that legally before some pedant points it out).

I obey the laws and pay what the policeman at the traffic stop asks for. It is hardly onerous and certainly much, much cheaper than in the UK. I am happy that farangs cannot own land because all the land will be bought by large Arabic or US corporations and it will drive the farmers off the land turning Bangkok into Kolkata or Mexico City, a cities surrounded by miles of slums.

I have no sympathy for visa overstayers or people working without a work permit. Throw the bums out say I.

I think the Bangkok land prices are rising at phenomenal rates without the help of the foreigners.

Have you seen the slums around Bangkok? There are literally hundreds of thousands of people living in tin shacks all squashed into whatever space they can occupy.

So, fail to see how the current policies are protecting the locals. I think it is far more likely that the local "wealthy" This people want to keep all the opportunities for themselves then any real desire to protect the people.

[GAZZPA]

It will be interesting to watch Myanmar, Cambodia, Vietnam, Lao, and Malaysia do regarding attracting entrepreneurs, capital and expertise to their countries. The bottom line is that as the economy continues to falter Thai SME's are failing and the government really does not have a clue how to stem that slide.

So far, other than Malaysia, not so hot. Topic: Ease of doing business ranking:

Myanmar: 167th Place

Cambodia: 127th Place

Indonesia: 107th Place

Philippines: 103rd Place

Vietnam: 90th Place

Suddenly, Thailand doesn't look so bad at 49th Place.

Malaysia: 18th Place (Maybe the Muslims know something?)

Singapore: #1 (But who can afford to live in style in Singapore?)

Source: http://www.thaivisa.com/forum/topic/926172-thailand-falls-to-49th-on-world-banks-ease-of-doing-business-ranking

Things change quickly. Vietnam has just lifted so many restrictions. It is only a matter of time before those positions and numbers change, and not a lot of time. Remember China has risen incredibly from the cheap factory of the World to number 1 (consumer) in the World in 15 years.

In 5 years almost any one of those countries could kick the sand in Thailands face as it runs past. The difference is attitude,, that's all. Vietnam is wide open, Philippines is next in my view, at the moment you need $200k USD capital investment to own outright,, not a lot for medium to large companies, just needs infrastructure improvement and away it goes.

Thialand has been at it longer then some of the poorer neighbours but it's stuck in the mud today.. Just my opinion but seems to be shared by many.

[GAZZPA]

This won't stop large companies with large amounts of capital from investing in Thailand. Only will stop the little guy doing a 1-man-shop.

Which are the lifeblood of IT, still one of the fastest growing industries. A nerd in a carage can grow to a billion dollar business and Thailand will get none of it, no incubators, no IT parks, nada. It's a missed opportunity.

There is little interest in innovation in Thailand. It is a moribund civilization and their neighbors rightfully benefit from hubris and xenophobia.

To avoid the disadvantages Thai laws bring, It is much better to service Thai clients and take advantages of Thai resources from a neighboring country. It is a country unfamiliar with its own geography, so they have no idea what goes on just across their own borders.

They will find out soon enough when the Philippines GDP outgrows Thailands,, you can see it is closing and closing very fast.

[louse1953]

Must be because farangs aren't regarded as persons.

More to do with Chinese than farang.

Farangs always think everything revolves around them,when actually they are only bit players in the big picture.

[asean]

I really do feel sorry for the Thai people as it is the only country in the world that actually has it written in law that the Thai People are inferior to foreigners. Imagine how a young Thai student must feel about this. Is it any wonder that they grow up so defensive?

They also have written laws where foreigners are not allowed to own land yet no attempt has been made to enforce this law in regards to the thousands of nominee landholding companies.

Not one attempt to filter search all the 49/51 companies. So where is the supposed protection?

If you took all the Japanese, Chinese industry and foreign investment out of Thailand what would you have left? Its like what they say about the Arabs. If they had no oil what would there be?

It is a very sad situation and the culture here will always evolve slower than others. Believe it or not Thai people are inherently smart but are rarely given the opportunity to challenge themselves and grow.

Edited July 12, 2016 by asean

[Balance]

It will be interesting to watch Myanmar, Cambodia, Vietnam, Lao, and Malaysia do regarding attracting entrepreneurs, capital and expertise to their countries. The bottom line is that as the economy continues to falter Thai SME's are failing and the government really does not have a clue how to stem that slide.

So far, other than Malaysia, not so hot. Topic: Ease of doing business ranking:

Myanmar: 167th Place

Cambodia: 127th Place

Indonesia: 107th Place

Philippines: 103rd Place

Vietnam: 90th Place

Suddenly, Thailand doesn't look so bad at 49th Place.

Malaysia: 18th Place (Maybe the Muslims know something?)

Singapore: #1 (But who can afford to live in style in Singapore?)

Source: http://www.thaivisa.com/forum/topic/926172-thailand-falls-to-49th-on-world-banks-ease-of-doing-business-ranking

Things change quickly. Vietnam has just lifted so many restrictions. It is only a matter of time before those positions and numbers change, and not a lot of time. Remember China has risen incredibly from the cheap factory of the World to number 1 (consumer) in the World in 15 years.

In 5 years almost any one of those countries could kick the sand in Thailands face as it runs past. The difference is attitude,, that's all. Vietnam is wide open, Philippines is next in my view, at the moment you need $200k USD capital investment to own outright,, not a lot for medium to large companies, just needs infrastructure improvement and away it goes.

Thialand has been at it longer then some of the poorer neighbours but it's stuck in the mud today.. Just my opinion but seems to be shared by many.

Thanks for the numbers. I saw the post but failed to save it. I do not have too much faith in the poll due to one thing: the lack of control foreigners have over the company they invest in and the dismal situation regarding the labor pool. Those two things alone would put it near the bottom of the list.

I agree entirely that unless there is a deep and widespread epiphany about the definition of Thainess in the next 2-3 years, Thailand will never catch up with the surrounding countries.

Edited July 12, 2016 by Balance

[pizzachang]

Not sure if any benefits accrue from "registering" a company in Thailand. Maybe on paper, when advertising your "company" to other world markets? An example could be the advertisements we often see...."offices in 27 countries."

[JAFO]

What I still will never understand is why foreigners whinge and whinge about not starting a business and not owning land. For Christs sake, enough already. This is not your country, these are their laws. their rules, don't like it...tough crappola. You are not in Kansas anymore. And that's not such a bad thing.

Stop whinging and get a life. Why are you Thai apologists never happy on this forum ?

Don't make me laugh. I am not a Thai apologist, that is such an ignorant response. I am just sick of reading over and over about foreigners who feel slighted, cheated,

So try to thicken your skin, or if a thread is too negative for your thin skin avoid it.

I do not think its a negative thread as headlined, I just do not understand why foreigners that move here. get trapped, need money then try and open their little breakfast/brothel and get mad and complain about the Thai system when they can't.

I would understand the "true" businessman attempting to try and open up a reputable establishment. But from what I have seen that is typically not the case. My point is I am glad they are still holding their stance on it. I think a majority know the reality is if they allow it, foreigners will flood here with their boat loads of dollars and exploit it. It would over run the current system and soon foreigners would be running it all to make it just like their country they left. As I said I love being in Thailand for what it isn't.

I would like to know how many that have responded in this thread complaining about the system and want to open a business and have been truly impacted by it. My hunch is that most are bored retiree's with nothing better to do but complain about everything from their little room.

No issues, their ruling doesn't impact me. Good Luck

[arithai12]

It's difficult to understand why all those loudly complaining about the conditions for foreigners in Thailand .... are still here.

[JAFO]

It's difficult to understand why all those loudly complaining about the conditions for foreigners in Thailand .... are still here.

In addition to that are the ones that do not even live here complaining about Thailand. They are holiday people. They go back to their western country yet still pop on to TVF and just biatch relentlessly. Those are the posters that always make me scratch my head. Their life must be utterly meaningless.

Edited July 13, 2016 by JAFO

[NCC1701A]

Party On!

[adhd]

Thailand prides itself on never bring colonized. Why the hell would you think they would change? You will never own BUSINESS nor LAND! Remember that and stop pipe dreaming...

the only REAL reason for this is that Thailand was a buffer zone (like swiss during the war) between the powers of the British (malay, myanmar, singapore, india) & the French (indochina)

much to be proud off

for the rest: invaded by chinese businessmen that are the elite now after a few generations

and do not allow farang to own anything or take profits from them !

imagine you have farang do-gooders that buy farm land and give it away or let people work it for almost free, instead of what the rich bangkokians are asking now from the farmers

[thaibeachlovers]

Given a choice between 100 foreigners griping about not being allowed to start their own business, and 99 foreigners griping about losing their retirement savings because they didn't quite get the intricacies of Thai business practices, I think they've made the humane choice. For everyone.

Quite right too. They are actually saving stupid farangs from losing all their money by buying businesses. For stupid farangs that insist on losing money, there are plenty of Thai women willing to assist them with that.

As for the farangs that constantly bleat on that it's "so unfair that Thais can own businesses in my country, but I can't in Thailand" boo hoo. Who ever said life was fair? Get over yourselves.

[Puwa]

A lot of people posting so far don't seem to know too many farangs outside their own circle.

Circular indeed.

[thaibeachlovers]

A lot of people posting so far don't seem to know too many farangs outside their own circle.

Most that I know are pretty decent people, with a only a few exceptions

and your point is?

If one lives in a place with few to nil other farangs how do you suggest they get to know other farangs outside their own circle ( there aren't any farangs even in my own circle where I live ).

[brianinbangkok]

it's not unique just to LOS.

I do recall it is no different in Malaysia, where no ferenghi cannot be in a business, unless it is owned by 51% or more by a Malay

In Fiji, the indigenous ran the (big-business-man) Indians out of town (many becoming refugees to Australia) , and gave it all to the locals

SudAfrika had countless property owners lose all their property, and often their lives, to the majority locals

Financial racism is a world-over problem

Yes , and how well these countries did after that.....

Zimbabwe comes to mind.

And it's funny how the politicaly correct in West insist only white people can be racist.

For tax reasons it would be good if Thailand allowed 1 man foreign companies for digital nomads.

Edited July 16, 2016 by brianinbangkok

[impulse]

Thailand 2046. You want massage? Where you go?

Ya think they'll get the accent right when they program the orgasmatron?