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.