Sunday, March 3, 2024

Update on Company Property Ownership in Thailand by Foreigners to Circumvent Ownership Restriction

Before the land workplace hints issued by means of the Land Department and Ministry of Interior starting in May 2006 it has been not unusual exercise for foreigners to very own belongings through Thai restricted agencies. Currently that is tons much less commonplace. Under the land workplace tips and policies, when a partly overseas owned enterprise is registering property (land or condominium past the foreign ownership quota) the company and the Thai shareholders within the corporation need to be investigated by the land workplace reliable earlier than registration and transfer of the assets to the organisation is authorized. I.E. Is it a real agency or set up to circumvent the law? Are the Thai shareholders in the business enterprise real shareholders or performing as nominees on behalf of a foreigner? If the assets buy via the organization seems to be a circumvention of the law the legitimate will now not permit transfer and ought to file the problem to the Land Department and look ahead to further advise from the Minister.

Existing in part overseas owned Thai businesses (with up to 49% foreign shareholding) owning property are not investigated with the aid of the Thai authorities (unless they do no longer follow the regulation).

The important sensible drawbacks of setting up a employer for belongings possession via a foreigner are:

1. The motive of a organisation won’t be to bypass foreign property ownership regulations in Thailand. This would be an unlawful purpose making the felony installation and assets registration into the corporation’s name void underneath the Civil and Commercial Code and unlawful beneath the Land Code Act.

The organization should have a commercial enterprise purpose and be in operation as a regular agency and document every year stability sheets and accurate accounting (i.E. The organisation can beneath Thai regulation now not be simply a ‘special reason business enterprise’ or dormant ‘land holding enterprise’ for the foreigner).

2. Foreigners aren’t allowed to use Thai nominee shareholders within the corporation. According to the present day recommendations ‘real shareholders’ are roughly defined as Thais with sufficient earnings and plausible financial and employment records. Are they financially possible? They must be able to evidence this at the Land Department (and be present) while registering the assets to the corporation.

Three. Whenever registering felony acts (e.G. Promoting the belongings) at the Land Department and a foreigner’s name appears on the business enterprise documents the land office reliable ought to check out the Thai shareholders, even  Was ist eine Holding? though the foreigner is removed from the up to date shareholder listing but seems at the Memorandum of Association such investigation is required.