Samui Phangan Real Estate Magazine October-November
Samui Phangan Real Estate Magazine Edition: October-November-2012 The definitive Guide to Samui Phangan Real Estate http://www.samui-phanganmagazine.com/
Samui Phangan Real Estate Magazine Edition: October-November-2012
The definitive Guide to Samui Phangan Real Estate
http://www.samui-phanganmagazine.com/
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If less than 49% of your company’s shares are held by foreigners, your company is considered a Thai company.<br />
However, if foreign nationals hold more than 49% of the shares, your company is a foreign company.<br />
The significant differences between Thai and foreign companies operating in Thailand lie in their rights to<br />
buy and own properties or other businesses. It is therefore important, especially for those in real estate and<br />
development businesses, to know and remember that unless your company is Thai, you are restricted in<br />
the ability to possess and obtain land and property in this country without an exemption granted by the<br />
government.<br />
Foreign companies are also restricted to certain activities and to proceed with certain operations the company<br />
will have to apply for permission from the government. In such instances, applications will be considered case<br />
by case. They will also face tough scrutiny and strict restrictions on their right to operate and ability to run<br />
their business. These companies will be treated in the same way as foreign nationals seeking jobs in Thailand.<br />
If you are registered as a Thai company, you are automatically granted the right to purchase and own properties<br />
and other business and will be treated the same way as a Thai citizen. However, according to new legislation<br />
that has recently come into effect, the Land Department’s staff are now required to thoroughly investigate<br />
your Thai shareholders’ sources of income. Thai shareholders in a company wishing to purchase properties in<br />
Thailand have to declare their income and provide the authorities with evidence that proves their ability to coinvest<br />
with other foreign shareholders in the same company. Only those successful in convincing the authorities<br />
are granted the right to purchase and possess land. Companies with approval from the Land Department can<br />
then proceed with their applications for land title deeds or other certificates of use and possession.<br />
LITTLE THINGS THAT MATTER<br />
A company limited has to have its own board of directors to act on behalf of the company. This panel will,<br />
however, act under the regulations and agreements approved by the shareholders. Appointing directors or<br />
removing any of them requires shareholders approval.<br />
At the end of the company’s financial year, within five months, it shall be the duty of the company to present<br />
the balance sheet to the Department of Business Development (DBD). If your company fails to present the<br />
balance sheet, the company will be fined up to 50,000 baht and the company’s board of directors may also<br />
be fined up to 50,000 baht. If the committee refuses to pay the fine, the police can appeal to the court for a<br />
warrant and file a lawsuit against the resilient parties. Withdrawal of the company’s business registration is also<br />
another penalty the company may face, should they not provide the authorities with the necessary statement.<br />
Information courtesy of Khun Surin Puangpakdee Senior Lawyer NSP&Laws Firm +66 077 458 204<br />
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