Many foreigners decide to move to the Land of Smiles with the objective of registering a company in Thailand.
For foreigners registering a company in Thailand, the most important piece of legislation is the Foreign Business Act.
The biggest obstacle for most foreign companies seeking to register in Thailand is that most, although not all, they require a Thai majority shareholding.
Many foreigners choose to form a Thai majority company, so that the Company is able to operate a business in a category that is restricted to foreigners. The registration of a Thai majority company generally requires less registered capital and less paperwork than the registration of a foreign company. A Thai majority company can also buy land.
However some foreigners opt to take the easy way out and appoint nominee shareholders. A nominee shareholder is a shareholder in name only; in reality nominee shareholders lacks any real financial stake or interest in the company.
There are companies in Thailand who will offer to supply Thai nominees. This is extremely high risk particularly if you have engaged the use of professional nominees whose name appears on multiple company registrations.. The use of “nominee” shareholders is expressly forbidden by the FBA. This is a criminal offense. While enforcement has been lacking in the past, awareness is increasing as can be seen by the recent clamping down in Phuket.
Relevant Video:
Relevant Article:
56 Phuket Firms Believed To Be In Breach Of The FBA
{ 0 comments… add one now }