Limited Company
nominee shareholders in a Thai company

A limited company in Thailand must have a minimum of 3 shareholder at all times. Thai nationals operating a business under a company often use nominee shareholders to complete the number of 3 shareholders in the limited company. There is no general restriction for Thais that prohibited the use of nominee shareholders in a business. This is different for foreigners. Foreign investors are prohibited from using nominee shareholders in a Thai company under the foreign business act. Also bearer shares (shares owned by whoever holds the physical share certificate) are prohibited.

Land Ownership in Thailand
foreign ownership restrictions

The restrictions of private foreign land ownership in Thailand is not absolute and can exist, pursuant section 86 of the Land Code Act, under a treaty (no treaty available) and foreigners can since 1999 qualify for land ownership under section 96 bis of the Land Code Act. In practice the exception in section 96 bis is so restrictive that this is not a viable option for foreigners. In general foreign land ownership in Thailand is prohibited and a foreigner who personally or through an agent (nominee) violates foreign land ownership restrictions is liable for fines and imprisonment (section 111 Land Code Act).

Inheritance Laws
succession of foreign owned real estate

Something you do not own, you cannot transfer by inheritance or last will, something you are not allowed to own as a foreigner in Thailand you cannot acquire by inheritance or by succession laws. Inheritance of land, leased land or condominium by foreigners in Thailand.

Usufruct in Thailand
Real Estate Laws: real property rights for individuals

Foreigners cannot own land in Thailand but they can obtain a right of usufruct by agreement with the Thai owner of the land or land an house. The essence of a right of usufruct is that it transfers the rights of possession, use, enjoyment and management of an immovable property from the owner to the usufructuary.

Inheritance tax
IHT proposed in Thailand

The Constitution Drafting Subcommittee yesterday floated an ambitious proposal to impose an inheritance tax and land tax as part of an effort to bridge income disparity.

Foreign Ownership
new property law stuns foreigners

Thailand's booming property sector has been thrown into confusion by a new regulation issued this month that requires all partly foreign-owned companies to prove the source of their funding before purchasing land, industry sources said Tuesday. The new Interior Ministry regulation that went into effect on May 25 has already started to slow sales of housing estates in Thailand's popular seaside resorts, such as Pattaya, Phuket, Hua Hin and Samui Island, which have been specifically targeting well-to-do foreigners as vacation getaways or retirement homes.

Company Formation
foreign and Thai shareholders

A Thai company is not subject to the Foreign Business Act and a Thai owned company (Thais holding more than half of the shares) will not be restricted by the Foreign Business Act. Foreigners are allowed to participate in a Thai company and control a Thai limited company. Due to the misuse of Thai nationals as nominee shareholders by foreigners the Thai government issued new 'business registration rules' preventing the use of Thai nominee shareholders by foreigners.

Alien Land Ownership
foreigners warned on land

Source Bangkokpost January 29 2007

Foreign investors holding property through shell companies using Thai nominees have been warned to restructure their holdings or face prosecution.