Probe finds 5 suspected local-nominee business services for foreigners

[webfact 79,126]

Probe finds 5 suspected local-nominee business services for foreigners

By The Nation

 

 

A probe by the Department of Business Development has turned up five juristic entities suspected of using local nominees to illegally help foreigners invest in Thailand this year.

 

Director-general Thosapone Dansuputra said the probe covered tourism, property and hotel businesses in Thailand's key tourism provinces of Phuket, Chiang Mai, Krabi, Surat Thani, Petchaburi, Prachuab Kirikan, Bangkok and Chonburi.

 

Thai nominees are often used by foreigners to do business or hold stakes in companies in Thailand, thereby breaching the Foreign Business Act, BE2542 (1999).

 

Of the five suspected cases, two are in the tourism sector and three in property businesses. Four are in Chonburi and one is in Prachuap Khiri Khan.

 

The department has forwarded its findings for further investigation by the Department of Special Investigation (DSI).

 

Breaches of the Foreign Business Act are punished with up to three years in jail and/or a fine of Bt100,000 to Bt1 million.

 

Source: https://www.nationthailand.com/business/30398237

 

-- © Copyright The Nation Thailand 2020-11-23

 

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[quake 1,194]

cue the next witch hunt, blame game 

 

[Mr Meeseeks 4,183]

We just had to submit ownership documents for one of my companies (non-BOI) to the DSI and I had to attend an interview. We are completely legal. 

 

During the interview they asked at length about foreign ownership and whether our Thai shareholders were proxies. They are not as they are active members of the board and two of them work for the company. 

[RichardColeman 26,530]

4 hours ago, webfact said:

Thai nominees are often used by foreigners to do business or hold stakes in companies in Thailand, thereby breaching the Foreign Business Act, BE2542 (1999).

One day Thailand will enter the 21st century - or even the 20th  !

[PatOngo 44,777]

9 minutes ago, RichardColeman said:

One day Thailand will enter the 21st century - or even the 20th  !

Optimist!

[ChrisY1 11,880]

And let me guess....none in little India or arabia land in Sukhumvit....?

Pay the fare, and there'll be no issues is what this is all about!

[ChipButty 15,637]

It's like opening a can of worms in Phuket

[fangless 3,611]

Only 5!

55555

[ThailandRyan 16,854]

Nationalities and names of the supposed companies would be nice.  Names of the new Hotels being built or that have been purchased, which Tour Package operations, which Zero Dollar Tour Bus companies?  The news report leaves so many unanswered questions that could have been answered instead of just saying 5 Juristic entities.  If they are Juristic entities, who are the Thai's that set these companies in motion, how much was the bribe paid, are the Thai individuals connected, and better yet will there be more reporting on this or will it just fade away due to connections and money paid to make it go away.

[Colabamumbai 3,653]

4 hours ago, quake said:

cue the next witch hunt, blame game 

 

Dinosaurs don't want money invested here. 

[Colabamumbai 3,653]

Start with the sinking of the boat full of Chinese tourists. Chinese tour company. Chinese married Thai lady, she was the nominee. 

[madmitch 11,459]

1 hour ago, ChrisY1 said:

And let me guess....none in little India or arabia land in Sukhumvit....?

Pay the fare, and there'll be no issues is what this is all about!

Probably no Chinese either.

[ChipButty 15,637]

13 minutes ago, Colabamumbai said:

Start with the sinking of the boat full of Chinese tourists. Chinese tour company. Chinese married Thai lady, she was the nominee. 

He did a runner I think..........?

[nobodysfriend 4,231]

5 hours ago, webfact said:

Thai nominees are often used by foreigners to do business or hold stakes in companies in Thailand, thereby breaching the Foreign Business Act, BE2542 (1999).

 

5 hours ago, webfact said:

three in property businesses

To set up a thai company with the sole intention of buying land in Thailand , is nothing more than a tolerated loophole .

Not really legal , they planned a crackdown on this a long time ago already , but never did ...

Edited November 23, 2020 by nobodysfriend

[Bluedan 382]

Lets face it most Ex pat owned small businesses in Thailand use nominees. It's relatively easy (even if expensive and time consuming) to comply with all other administrative and legal requirements, but not this one. Where does one find 51% genuine Thai shareholders who will genuinely invest in a new business? To meet the letter of the law they must invest a commensurate amount of capital or at least intellectual property of other valued assets. Every few years a crackdown is threatened. It would be really easy to do an audit of all of these businesses (simply check who are the 51% and ask for evidence of their contribution) and close them down which would be just great for all of the Thai staff they employ. Its a case of deliberately  setting the bar too high and then putting ones hand out for tea money to turn a blind eye.