Integrity Legal

The administration of this blog recently noticed an article from the Reuters news agency in which the Chief Executive Officer of General Electric was commenting upon the economic situation in China and how this impacts the relationship between the United States of America and Peoples’ Republic of China in both the economic and political spheres. To quote directly from the Reuters News Service:

(Reuters) – For Jeff Immelt, the CEO of General Electric (GE.N), the 130 year-old American industrial behemoth, the financial crisis marked the end of the age of America’s economic dominance.

This blogger has noticed that there seems to be a level of pessimism regarding the American economy. Although it is currently going through economic turbulence, and has been for a while, the US economy, in this blogger’s opinion; remains one of best countries in the world for trade and economic activity. Those doing business in the USA may enjoy the benefits that come from the American financial, economic, and physical infrastructure. Hopefully, the optimism for which America has, in the past, been noted for will return once the economy returns to an “even keel”. Reuters continues:

But Mr. Immelt said the future will be different. For the next 25 years, he said, the American consumer “is not going to be the engine of global growth. It is going to be the billion people joining the middle class in Asia, it is going to be what the resource-rich countries do with their newfound wealth of high oil prices. That’s the game.”

A lot of that game will be played in China. At a moment when it is compulsory on the American right to pay homage to the exceptionalism of the United States, Mr. Immelt, a lifelong Republican, is matter-of-fact about China’s inevitable rise.

The interesting piece of information that this blogger noted in the aforementioned article was the fact that the G.E. CEO took notice of the fact that the middle class is growing rapidly in Asia. The thought of an Asian middle class numbering 1 billion or more is truly staggering when one takes into account the economic impact of such growth. As Asians in general become more affluent the side effects will likely be increased trade and economic activity as these newly minted members of the middle class use their new found wealth to make purchases of property, goods, and services (in Asia, the EU, UK, and the United States). The most poignant line of this Reuters article, in this blogger’s opinion was:

“It is going to be the biggest economy in the world,” Mr. Immelt said of China. “The only question is when.”

There is little doubt that China has an incredible capacity for growth and those looking international investment or business opportunities are well advised to research the Chinese market. That said, China does not represent the only country in Asia which has economic opportunities that are becoming more readily available to investors and entrepreneurs due to globalization. The Kingdom of Thailand, a member of the Association of Southeast Asian Nations (ASEAN), has investment opportunities in the form of Thai Property, Thai Real Estate, and Thai businesses. Furthermore, for Americans conducting business in Thailand can prove profitable especially since the US-Thai Treaty of Amity allows Americans to own virtually 100% of a Thai Company with Amity Treaty certification (sometimes referred to as an Amity Company).

Meanwhile, the landlocked country of Laos recently opened a Lao Securities Exchange in an effort to raise capital through equity investment. The Kingdom of Cambodia recently announced that a Cambodian Stock Exchange is to be unveiled in mid-2011 while recent reports have noted that Burmese officials hope to be in the process of creating a Myanmar Stock Exchange as well. Such developments remain to be fully realized, but such examples clearly indicate that Mainland China is not the only “game in town” when it comes to investment opportunities and economic growth in Asia.

For related information please see: US Company Registration.

Tags: American Amity Treaty, American Amity Treaty Thailand, Amity Company, Amity Treaty Company, Burma Stock Exchange, Cambodia Business, Cambodia Securities Exchange, Cambodia Stock Exchange, China Business, China Economic Growth, G.E. CEO, General Electric, Jeff Immelt, Lao Securities Exchange, Lao Stock Exchange, Laos Business, Myanmar Securities Exchange, Myanmar Stock Exchange, Thai Company, Thailand Business, Thailand company, US Amity Treaty Thailand, US-Thai Treaty of Amity
Posted in Amity Treaty, Cambodia Business, China Business, Laos Business, Myanmar (Burma) Business, News, Opinion, Thailand Business, Thailand company, Thailand Property, Thailand Real Estate, US Business, US Company Registration | 1 Comment »

It recently came to this blogger’s attention, via the print media in Bangkok, Thailand; that the Association of Southeast Asian Nations (ASEAN), along with other organizations and individuals, are calling for an end to the economic sanctions being imposed against the Union of Myanmar (sometimes interchangeably referred to as Burma). While researching this issue online this blogger came upon the following quotation from Rttnews.com:

An informal meeting of the Foreign Ministers of the Association of Southeast Asian Nations (ASEAN) has called for the lifting of economic sanctions against the military regime of Myanmar.

The meeting, held on the Indonesian island of Lombok, made the call citing “significant” political progress made in the south-east Asian country.

Indonesian Foreign Minister Marty Natalegawa, whose country holds the rotating chair of the ten-nation organization, told reporters: “We believe that the recent development needs to be responded by the international community, especially in order to ensure that the economic development in Myanmar can take place.”

He says ASEAN Ministers feel that the recent long-awaited Myanmar elections, which he described as “conducive and transparent, and the release of Opposition leader Aung San Suu Kyi warranted a positive international response.

The lifting of the sanctions against Myanmar still remains to be seen, but in the wake of the announcement from ASEAN the Straits Times official website is reporting that authorities in Myanmar are taking steps toward creating a stock exchange in Myanmar. To quote directly from the Straits Times website StraitsTimes.com:

BANGKOK – MYANMAR is in talks with South Korea’s bourse operator about opening a stock market, the latest in a series of steps by its military rulers aimed at drawing much-needed foreign capital to the country.

Korea Exchange is already involved in running the newly opened Laos Securities Exchange and is setting up a long-delayed stock market in Cambodia, which is due to open in July. Both are joint ventures with the respective governments.

In previous postings on this blog, the administration has discussed the unveiling of a Stock Exchange in Laos and the announcement that a Cambodian Securities Exchange is set to be opened in mid-2011. In the case of Myanmar, it would appear as though any plans for the eventual creation of a Myanmar securities exchange are still tentative as can be gathered from a further quote in the Straits Times posting:

A spokesman for Korea Exchange in Seoul said representatives had visited Myanmar twice. ‘But nothing has been decided,’ the official said.

Although the opening of a Myanmar Securities Exchange is not a foregone conclusion, there are many who can cite the myriad economic benefits that would accrue as a result of such a step. Furthermore, there are those who would argue that creation of economic opportunities in Myanmar would be beneficial for all Citizens of Myanmar based upon a sort of “rising tide raises all ships” logic. To quote further from the Straits Times:

Myanmar is rich in natural resources but its development has been held back by five decades of economic mismanagement under military dictators and by Western sanctions.

But reforms are under way. The authorities have privatised hundreds of state assets in the past year and are seeking to expand the banking, telecommunications, shipping and agricultural sectors. — REUTERS

Myanmar is truly a cornucopia of natural resources and economic opportunity, but at the time of this writing many nations, including the United States of America, have sanctions against this Southeast Asian nation which prohibit certain forms of commercial activity. There are some who argue that such sanctions actually exacerbate the plight of impoverished Myanmar Citizens. Such an argument generally postulates that easing of foreign trade restrictions, and the economic benefits which would likely arise from such a state of affairs, would accrue to the benefit of many of the market actors in Myanmar, many of whom live in poverty. Under such a theory, economic benefits would not necessarily exclusively accrue to the upper echelon of Myanmar as the less affluent would likely benefit, albeit indirectly, from the infusion of foreign capital, trade goods, intellectual property, and the further economic activity arising therefrom.

Even though a securities exchange in Myanmar may be merely in the discussion phase and is a long way from being created, those interested in doing business in Myanmar, or any other country in Southeast Asia, should take note of the information above as there are many who would argue that Myanmar will likely play a critical role in regional and global economics as well as trade.

For related information please see: US Company Registration, US Visa Myanmar, or Laos Securities Exchange.

Tags: ASEAN, Asia Business News, ASsociation of Southeast ASian Nations, Burma Business, Burma Business News, Burma News, Burma Securities Exchange, Burma Stock Exchange, Burmese Securities Exchange, Burmese Stock Exchange, Cambodia Business, Korea Exchange, Laos Business, Laos Securities Exchange, Laos Stock Exchange, Myanmar Business, Myanmar Business News, Myanmar News, Myanmar Securities Exchange, Myanmar Stock Exchange, Southeast Asia Business News, Thailand Business
Posted in Myanmar (Burma) Business | No Comments »

It recently came to the attention of the administration of this blog that a new trade complex is to be erected in Bangkok for the purpose of facilitating the trade of Chinese goods in Thailand and Greater South East Asia. To quote directly from the Voice of America News website:

Chinese state media say work will begin this month on a massive trading complex in Bangkok where Chinese manufacturers will be able to re-export their goods.

The China Daily newspaper said Thursday that the China City Complex will cost $1.5 billion and sprawl over almost three-quarters of a square kilometer. Chinese manufacturers will be able to import goods to Thailand, taking advantage of a new free trade deal, and then ship to the United States and Europe under more advantageous quotas and tariffs.

It is interesting to note that China officially became the second largest economy in the world in 2010. This plan will likely result in an increasingly prosperous trade relationship between the Peoples’ Republic of China and the Kingdom of Thailand. The Voice of America News website went on:

China has been using trade and commercial projects to improve its diplomatic and strategic standing in Southeast Asia. Thailand’s deputy minister of commerce, Alongkorn Ponlaboot, is quoted by China Daily saying the China City Complex corroborates “a strategic business-partner relationship” between China and Thailand.

China’s free-trade agreement with the 10-member Association of Southeast Asian Nations was concluded last year.

Putting aside diplomatic and strategic matters, the ambitious project could result in economic benefits for many ASEAN countries (Association of South East Asian Nations) especially Thailand. The creation of a new commercial project such as the one proposed will likely come with the added benefit of new jobs for Thais near Bangkok, new business opportunities for Thai entrepreneurs, new trade opportunities for Thai, Chinese, and other foreign investors; and an overall increase in the flow of goods, capital, labor, and resources to the Kingdom of Thailand and the Greater ASEAN region.

Each year, foreign companies and individuals opt to pursue business ventures in the Kingdom of Thailand. In some cases, entrepreneurs incorporate a Thai Company in order to maintain limited liability while conducting business. Sometimes individuals opt to do business under a Thai sole proprietorship. Partnerships often prefer the added layer of limited liability that can be conferred upon certain members of a Limited Liability Partnership in Thailand. Large ventures conducting business in Thailand occasionally opt to take their enterprise public through the registration of a Thai public company. In any case, those wishing to conduct trade or business in the Kingdom of Thailand are well advised to contact a Law Firm in Thailand as advice and counsel regarding the unique aspects of Thai law can be highly advantageous for businesses making their first appearance in the Thai market. Foreign nationals employed or working in Thailand should note that all foreigners working within the jurisdiction of the Kingdom of Thailand are required to have a Thai work permit in order to lawfully take up virtually any type of employment.

Matters pertaining to the acquisition of Thai property or Thai Real Estate within the context of multi-jurisdictional business transactions can be complex and multifaceted. For this reason it is highly advisable that foreign nationals or foreign companies conducting business in the Kingdom of Thailand retain the services of a firm to assist with Thai property matters prior to making an irrevocable decisions regarding the acquisition of Thai real estate or property.

For related information please see: US Company Registration or Legal.

Tags: Asian Business, ASsociation of Southeast ASian Nations, Business in ASEAN, Chinese Business in Thailand, SouthEast Asia Business, Thai Business, Thai Property, Thai Real Estate, Thailand Business, Thailand Property, Thailand Real Estate
Posted in Ecommerce, News, Thailand Business, Thailand company, Thailand Property, Thailand Real Estate, Thailand Visa, Thailand Work Permit | 1 Comment »

Those who track this blog may have noticed that there has been an increase in political activities which have disrupted the otherwise calm political and economic environment in the Kingdom of Thailand. There are many who feel that these disruptions are only temporary and will not prove detrimental over the long term. In the short term, individuals and businesses in Thailand are analyzing some new risks which have manifested themselves over the past 9-12 months. To quote directly from Westlawbusiness.com:

Several companies have recently disclosed risks arising from the political turmoil in Thailand. For example, Priceline.com, an online hotel auctioneer, recently disclosed that “civil unrest in Thailand, a key market for our Agoda business and the Asian business of Booking.com. This may result in “significant year-over-year declines in booking volumes in this market….Thailand has experienced disruptive civil unrest in prior years as well and continued or future civil or political unrest could further disrupt Agoda’s Thailand-based business and operations.”

Communication cable manufacturer General Cable is also reporting that it is subject to business risk arising from unrest in Thailand. The copper, aluminum, and fiber optic wire and cable products provider recently disclosed that its “business is subject to the economic, political and other risks of maintaining facilities and selling products in foreign countries. . . Thailand recently experienced significant political and militant unrest in certain provinces. The country’s elected government was overthrown in September 2006, with an elected government only recently restored.” [emphasis in original]

Political turmoil can have substantial unforeseen consequences for some businesses and business models operating throughout Asia. This is why retaining the assistance of local legal counsel can be advantageous for multinational corporations as professionals with on-the-ground knowledge of local business customs and practices can guide clients away from unforeseen legal, and in some cases; business, risks.

There are many, this author included, who feel that the current political turbulence in Thailand is simply a “bump in the road” eventually leading to overall tranquility and economic prosperity in the Kingdom of Thailand as well as the South East Asia region. Bearing that in mind, those wishing to establish a business or corporate presence in Thailand are well advised to conduct research and due diligence before making irrevocable business decisions as  maintaining a corporate presence in Bangkok, or the emerging markets in Cambodia, Laos, Burma (Myanmar), Malaysia, and Vietnam can be fraught with unforeseen legal and business issues which may not arise in jurisdictions such as the United States, the European Union, the United Kingdom, Australia, or Canada.

Many wishing to do business in Thailand opt to do so under a Thai Limited Company as this type of juristic person provides a measure of limited liability. Limited Liability is often one of the first methods employed by those wishing to hedge against unforeseen future business risks. American businesses may also enjoy many benefits pursuant to the language of the US-Thai Treaty of Amity. Regardless of the type of corporate structure, any foreigner wishing to work in the Kingdom of Thailand must obtain a Thai work permit prior to taking up employment pursuant to Thai labor law.

For related information please see: Bangkok Lawyer or Amity Treaty Company.

Tags: Amity Treaty Company, Asian Business, Bangkok Business, Bangkok Lawyer, Bangkok Riots, Cambodia Business, Malaysia Business, Myanmar Business, Southeast Asian Business, Thai Business, Thai Company Incorporation, Thai Company Setup, Thai Limited Company, Thailand Business, Thailand Business Risks, Thailand Company Formation, Thailand company registration, Thailand Political Turbulence, Upheaval in Thailand, US-Thai Treaty of Amity, Vietnam Business
Posted in Amity Treaty, Ecommerce, Thailand Business, Thailand company, Thailand Work Permit, US Business | No Comments »

In a recent posting on the website ThaiVisa.com the following was announced:

CHON BURI:– Immigration police here have arrested a Belgian man for having allegedly extorted money from his fellow Belgians by deceiving them that he is a police officer and advisor to the Belgian ambassador. Pol Col Athiswis Kamolrat, commander of the Chon Buri Immigration Police, held a press conference Thursday to announce the arrest of Jacobs Marc R.

Athiswis said the immigration police were asked by the Belgian Embassy in Bangkok to help make the arrest after several Belgian tourists filed complaints with the embassy that they were extorted out of money by Marc. Athiwis said Marc was arrested at his rented room in Bang Lamung district.

It is interesting to note the “tough” stance being taken by Thai Immigration authorities with regard to foreign criminals. It would appear as though Thai authorities are increasingly concerned with eradication of the foreign criminal element in the Kingdom. In a recent blog posting this author noted that the Royal Thai Immigration Police are taking measures to integrate their systems with those of the US and the international law enforcement community. It remains to be seen how effective this initiative will be in ascertaining the criminal history of foreign nationals in Thailand, but one can easily assume that Thai authorities will be placed on better notice of foreign criminals in the Kingdom.

In another story on the Pattaya One News website the following was reported:

Political unrest hit the tourism industry hard in May, causing arrivals and hotel occupancy to plummet in the central and northern provinces, says the Bank of Thailand.

Unfortunately, the recent political turmoil caused many setbacks for both businesses in and around Bangkok as well as the Thai tourism industry as a whole. Although the Thai government has been taking steps to assist businesses impacted by the recent unrest many feel that recovery will likely be slow and incremental. The problem is probably exacerbated by the worldwide economic crisis which has been particularly acute in countries such as the United States as well as parts of the European Union.

Thailand remains a strong economic player in Southeast Asia, but the confluence of recent events, both local and global, have caused a great deal of strain on the Thai business community. However, many feel that Thailand’s economy and tourism sectors are resilient and can overcome these recent obstacles.

For related information please see: warrant.

Tags: crime in Thailand, Extortion, News, Thailand Business, Tourism in Thailand, warrant
Posted in News, Thailand Business | No Comments »

Thailand can be a difficult business market for some foreign firms to enter due to the many restrictions placed upon foreigners who operate in the Kingdom.The Foreign Business Act precludes foreigners from engaging in many business activities. However, over the past decade there have been repeated attempts to amend the Foreign Business Act. These attempts have been made for a variety of reasons. Some have hoped to liberalize the Thai market while others have tried to make the regulations more restrictive. In either case, these attempts have been just that because very few have been able to push through legislation to modify the law.

Recently the website Thaivisa.com in conjunction with The Nation Newspaper are reporting that changes may be coming for the Thai Foreign Business Act. To quote from Thaivisa.com:

“The planned liberalisation of certain business sectors currently limited to Thai firms will be accompanied by the imposition of more stringent restrictions on foreign-owned businesses operating in the Kingdom if a series of proposals by the Commerce Ministry are accepted by economic ministers. Under the ministry’s proposed amendments to the Foreign Business Act (FBA), voting rights of foreign shareholders will be more tightly controlled…In an effort to boost foreign investment, the government is considering removing some industries from the FBA’s Annex III, which lists industries that are off-limits to non-Thais. Annex III businesses that might be opened up include tour guide operators; trading in agricultural futures; stock trading; derivatives trading; commercial banking; insurance and assurance; pawnshop operators; warehousing; schools; and credit fonciers [sic]. ‘The amendments should create clear regulations for controlling each type of business. It should make the environment friendlier for foreign investors and streamline business regulations. However, it may affect some Thai businesses that are not competitive with foreign firms,” said a senior Commerce Industry source.’”

Although all of the implications of these proposed changes have not yet been deciphered it is clear that these changes will have a dramatic impact upon the foreign business community in Thailand.

This amendment may also come with new restrictions for some types of companies in Thailand:

“The proposed removal of some businesses from Annex III has prompted a concurrent proposal to impose stringent controls on the voting rights of foreign shareholder, which must not be higher than 50 per cent. The amended regulations would only apply to new foreign-owned companies.”

Some corporate structures in Thailand provide disproportionate voting rights for certain shareholders. If approved, this amendment would likely mean the end of disproportionate corporate voting rights. This section of the proposed amendment will probably not be warmly greeted by the foreign business community in Thailand. As it states above, in its current form, this legislation should not affect the operation of a Thai Company that is currently in existence, but the final draft of this legislation could be very different from what is being debated at this time.

Tags: Foreign Business Act Thailand, Foreign Business Thailand, Foreign Company Thailand, Thai Business, Thai Company, Thailand Business, Thailand Business Law, Thailand company, Thailand Foreign Business Act
Posted in Thailand Business, Thailand company, Upcoming Legislation | No Comments »

The Thai Ministry of Labour seems to be preparing for a major overhaul of the Thai work permit rules. Currently, Thai work permit regulations are relatively straightforward and the process is not particularly cumbersome. However, it would appear that new rules will be put into effect in the beginning of 2010. The following is a brief overview of the proposed rules and requirements.

Currently, there is a list of jobs that foreigners can and cannot engage in, an updated list of the types of employment which foreign nationals will be permitted to engage in will be promulgated on or before February 23, 2010. Pursuant to recent drafts of the updated Ministerial Regulations on the kinds of work that foreign nationals are permitted to engage in, these updated rules and will impact on currently valid work permits as they will be reevaluated upon extension.

The new protocols will force foreign nationals, when submitting a request for a work permit to be issued or renewed, to explain both the type of work (apparently, there will be between six and eight employment categories) and the actual job title that the foreign national will apply for.

Information regarding Ministry approved positions will not be available to the public as only officers at the Thai Ministry of Labour will have the list of approved positions. This list will be in an “internal guidebook,” which will only be distributed within the Ministry.

If a foreigner applies for a position that is not listed in the Ministry’s “internal guidebook,” the application will likely be denied. The foreign national may submit a new application but it will be placed under heavy scrutiny by the officers.

The sponsoring company’s business plan will also be required as well evidence showing that the company attempted to employ a Thai national in the position, but was unsuccessful in finding anyone to fill the role.

It should be noted that although these new rules will not have a direct affect upon one’s Thailand visa, failure to obtain a Thai work permit before one’s visa extension application is due could result in an inability to obtain a new visa extension and thereby cause the foreigner to fall out of status. For those staying in Thailand on a business visa, it may be wise to keep an eye upon the work permit rules as these rule changes will likely affect a foreigner’s ability to remain in the Kingdom in their current position. Those who own a company in Thailand should stay abreast of the rules as they could have a major impact upon a company’s human resources department.

Tags: new work permit rules Thailand, Thai Business Visa, Thai Company, Thai Visa, Thai Work Permit, Thailand Business, Thailand Business Law, Thailand Business Visa, Thailand company, Thailand Visa, Thailand Work Permit
Posted in General Legal Information, Legal Opinion, Miscellaneous, Thailand Business, Thailand company, Thailand Visa | No Comments »

In Thailand, any foreign national who wishes to be employed in the Kingdom must first obtain a work permit. Any Thai company that wishes to employ a foreigner must first meet certain requirements before the Thai Ministry of Labour will issue a work permit to a foreign national. Most notable among the requirements: any company employing a foreigner must have at least 2 million baht in registered capital (There may be exceptions for those with Thai Permanent Residence or an O visa based upon marriage to a Thai national). For the most part, employees in Thailand will only have one employer. However, sometimes situations arise where a foreign worker wishes to take up a second job. In this case a second employer will need to be noted in the work permit booklet.

There is a common misconception that a Thai work permit allows a foreigner to work anywhere in any capacity within the Kingdom of Thailand. Unfortunately, this is not the case, the work permit simply allows the foreigner to be engaged in the specifically noted activity stipulated in the work permit. Further, the work permit only allows the foreigner to be employed at the place of employment noted in the work permit booklet. Therefore, the address of the employer could be inferred as the only location where the foreigner is eligible to work.

Should secondary employment be sought by the foreigner, then it may be possible have another employer noted in the foreigner’s work permit. However, the first employer must agree to have a second employer noted therein. Further, the activity specified in the permit must be in conformity with the employment restrictions in the Thai Foreign Business Act. This legislation restricts foreigners from engaging in certain business activities in the Kingdom of Thailand.

The addition of a second employer should not have an impact upon the foreign national’s visa status in the Kingdom provided the original employer continues to meet the Thai Immigration rules regarding requirements for sponsorship of a Thai visa extension. Basically, the foreign national will continue to maintain one visa (sponsored by the original employer), but will have two work authorizations (one for the original employer and another for the secondary employer).

In a case where the original employment is ending, but the foreign national wishes to continue to reside in the Kingdom and work for what had been his second employer, a new Thailand visa extension could be issued if the foreigner quickly petitions for such an extension (it usually must be within 7 days) and the secondary employer meets the requirements for sponsoring a Thai visa extension.

Tags: Thai Visa, Thai Visa Extension, Thai Work Permit, Thailand Business, Thailand company, Thailand Visa, Thailand visa extension, Work Permit, work permit Thailand
Posted in Legal Opinion, Miscellaneous, Thailand Business, Thailand Visa | No Comments »

The Bangkok Post is reporting that the World Bank has released a new report regarding the ease of doing business throughout the world. According to the report, Thailand achieved an overall rank of 12 when compared against other countries.

The Bangkok Post was quoted as saying:

“Thailand ranked relatively well in terms of property registration, trade, investor protection and ease in dealing with construction permits… Kirida Bhaopichitr, senior country economist for the World Bank in Bangkok, said Thailand benefited from improvements in the time and procedures needed to register a business and reduced bureaucracy in customs clearance.”

One of the major benefits to those doing business in the Kingdom of Thailand is the improved registration process for setting up a Thai company. At one time, the process of registering a Thai company was extremely time consuming and also required the seven shareholders.

Recently, the corporate laws have been changed to allow companies to have a minimum of three shareholders. If correctly executed, the company registration process can now be completed in as little as one day.

One slightly misleading aspect of this article concerns Thai property registration. Although it is true that Thai property can be registered relatively easily, the article does not go on to mention the fact that foreign nationals are virtually barred from owning land in the Kingdom of Thailand. In theory, it is possible for foreign nationals to own land in Thailand, but they must have the transaction signed off by the Minister of the Interior. Obtaining this signature is considered nearly impossible in some cases.

The Bangkok Post article also said, “Penelope Brook, acting vice-president for financial and private sector development at the World Bank, said Thailand could do more to improve areas such as transparency and investor protection.” There is some truth to this criticism as regulation of Thai investments is enforced less strenuously than in other countries. However, the Thai economy is often more transparent than many countries. That being said, one of the main reasons many people consider it non-transparent is due to the fact that the Thai method of doing business is very different from that of the West. Therefore, a result of these differences is that the economy is viewed as less transparent when the real issue is probably one of culture clash.

This article only dealt with the economic sphere and did not really deal with the political front. That being said, business and politics will always have an impact upon each other.

Tags: Thai Company, Thailand Business, Thailand Property Registration
Posted in Thailand Business, Thailand Property, Thailand Real Estate | 2 Comments »

Apparently the Thai government officials in Phuket are actively investigating companies that might be using Thai nominees in order to conduct otherwise restricted activities in Thailand.  To quote the Nation via Thaivisa.com:

“A fact-finding effort is underway in Phuket to compile information about local businesses in which Thai people are hired by foreigners as their nominees – a practice considered suspicious and possibly illegal.”

The major concern seems centered around use of Thai nominees to own Thai property. Thailand has imposed many legal restrictions on foreign ownership of Thai property. Many are under the mistaken idea that foreigners are completely barred from owning land in the Kingdom of Thailand. This is in fact not true as foreigners can own land, but they need Ministry of Interior approval and this approval is virtually impossible to obtain except in limited cases involving inheritance.

The above quoted article doesn’t really mention anything new regarding the attitude of Thai authorities, but instead seems to mark a change in attitude regarding the use of nominee shareholders. Although nominee shareholders are expressly prohibited under Thai law, it is difficult to ascertain exactly what constitutes a “nominee.” Basically, a passive shareholder could be considered a nominee, but the term would be inaccurate because the supposed nominee has a vested interest in the company and is not holding shares for anyone else. The real poison pill comes down to land. Where a company is being used to own Thai real estate the issue of nominee shareholders is a major one that will likely be heavily scrutinized by Thai authorities. That being said, a Thai company that owns property is not illegal as a Thai company is not barred from owning land in Thailand. This being said, the Thai land department is taking a very tough stand regarding the use of nominees:

“The provincial land office said legal action would be taken against any businesses found to have been operated illegally with a majority of foreign ownership, because Thai land laws imposed strict sanctions on foreigners owning land plots in Thailand.”

For those who wish to own property in Thailand, it may be best to obtain a Foreign Freehold Title to a Thai Condo rather than attempting to circumvent land department regulations. At the present time, it would appear that Thai authorities are stringently enforcing the land laws and foreigners in Thailand should be prepared to deal with increased scrutiny. Strict observance of the law may be the best method of ensuring the least amount of difficulty.

Tags: Thailand Business, Thailand Legal News, Thailand Property Law, Thailand Real Estate Law
Posted in General Legal Information, Legal Opinion, Miscellaneous, Thailand Business, Thailand Property, Thailand Real Estate | No Comments »