Ministry
of Interior Circular Letter
Re: Land Acquisition by Juristic Persons with Foreign Shareholders
Re:
Land Acquisition by Juristic Persons with Foreign Shareholders
To: Governor of Province
Ref: Ministry of Interior letter Mor Thor 0515/ Wor 2657 issued on 5 Aug
2546 B.E.
Land Department letter Mor Thor 0515/ Wor 13725 issued on 4 May 2548 B.E.
Land Department letter Mor Thor 0515/ Wor 12013 issued on 26 Apr 2549
B.E.
According
to the Ministry of Interior and Thailand Land Department regulations concerning
land acquisition by juristic persons with aliens holding shares.
The
Ministry of Interior has reason to believe that there are foreigners and
Thai nationals or Thai nationals that have been used as nominees by foreigners
that have registered Thai companies to engage in real property business.
Initially, these registered thailand companies have requested to buy land and house for residence
or for company head quarters. Subsequently, they request to change the
company objectives of the limited company to permit sale of the land or
division of the real estate for sale to other foreigners. This is illegal.
The
Ministry of Interior has determined that there should be additional procedures
pursuant to section 74 of the Land Code to close the loopholes being exploited
by aliens.
According
we advise as follows:
"If
a limited company, limited partnership or registered partnership requests
to acquire land and its objective is the real property business (except
public companies or other juristic persons who have obtained the permission
from other regulations such as section 27 of Investment Promotion Act
2520 B.E. or section 44 of Thai Industrial Settlement Act 2522 B.E. or
Real Property Capital of Commercial Bank or banks established by special
laws or capital companies or stock companies of a Life Insurance Company
or Insurance Companies), and has foreign shareholders or foreigner directors
in the company who are reasonably believed to have used Thai nominees
to hold shares on behalf and in place of foreigners, the officer is required
to examine the income of Thai shareholders, his occupation, length of
employment and his monthly income. The Thai shareholder is required to
provide such evidence. If the Thai shareholder has borrowed money from
other people to purchase shares, he has to show loan evidence to the officer.
If the examination demonstrates convincingly that there is a violation
of section 74 clause 2 of Land Code, the officer is required to examine
further and send the report to Land Department to for appropriate action."
This
letter is to inform and order the officer accordingly.
Best
Regards,
-
- - Signature - - -
(Mr. Sura-ad Thongniramol)
Vice Minister of the Ministry of Interior
Head of Interior Duty |
