Today is it Fool Day or what?
If it is true, that will be the best gift to start the year 2012.
Thanks Phuketwan to keep us posted about it.

Posted by Whistle-Blower on January 3, 2012 16:42

It would be handy if the Thai law was clear on what the law really is regarding Thai companies with foreign investors, shareholders and/or directors. So many stories abound, foreigners can own 49% of a business or not, foreigners can invest in a business or not, Thai companies can borrow money from foreigners or not?

Thai people in prominent positions come out wih remarks like this without really thinking what they are saying, or maybe it doesn't really matter because Thailand is a sovereign nation and Thais can say and do whatever they want especially in so far as it affects foreigners. If the latter is so then maybe foreigners should take their investments in the country away and place them with Thailand's neighbors or elsewhere where there is some recognition of the benefits that money provides. Increasingly it seems Thailand is a mighty high risk country to invest anything.

Posted by Anonymous on January 3, 2012 16:58

I am so thankful I don't have a business here in Thailand. Why anyone would invest 100% and provide 51% shareholding (mostly to people they don't know or have never met) is beyond me.

Does the Property/Real Estate classification cover agencies?

I guess it's a clear message:

1. Don't set up any type of business here in Thailand and;

2. Don't buy any type of real estate

Personally I would never do either.

Posted by Graham on January 3, 2012 17:07

Do Russians come into this category, I thought there was one law for them and one law for the others.

Posted by Nick on January 3, 2012 17:14

"There are many companies run by foreigners in Phuket and around the country that make money and the money goes out of Thailand".

I earn money in Thailand, I pay my Tax in Thailand, the money is now mine and I will spend it how and where I want as its mine. Do Thai's not invest there money overseas?

Posted by coxo on January 3, 2012 18:29

While the concern of business is that corruption is undermining the country's competitiveness; especially in tourism.
Many foreigners are setting-up Thai companies with proxy Thai staff, Thai Directors and Thai shareholders to flout the law with the help of greedy lawyers or Accounting Offices.
With that corrupted system and with less than 30,000 Baht any foreigner can have a registered company and get a work-permit at the expense of legitimate Thai companies.
It is time to Thai people to wake-up before it is too late.
I am definitely against foreigners setting-up companies through illegitimate means by bribing officials with the help of rogue lawyers and accounting offices in order to have proxy nominees as Thai shareholders, Thai directors and Thai staff to look legitimate.
Thai owned companies can provide work-permits to those foreigners by legal means.
Many foreigners in Phuket, Phang Nga and Krabi Provinces as other parts of Thailand are running websites which are officially owned by companies located in foreign countries (Hong-Kong, Singapore, etc...), with foreign bank accounts in those countries to avoid to pay taxes in Thailand but foreigners running that businesses are living in Thailand in secluded houses and each partners make their own companies to get valid work-permits.
Some of companies like that has dozens of foreigners working day and nights.
All money is paid on oversea account through bank-transfers or PayPal and only a fraction of that money is coming in Thailand for monthly expenses.

Posted by Whistle-Blower on January 3, 2012 19:17

First the floods, now the DSI, foreign investment never been so easy in Thailand. I really do not understand, why foreigners are not allowed to own (a majority in) a company. If they are not allowed to work, that I get, but investing made hard, I cannot get my head around. These nominee stuff only supports corruption and bad ass types to do business anyway.

Posted by Lena on January 3, 2012 20:08

Its hard enough for business owners at the moment. Do they really need additional pressure right now?

The fact that foreigners employ Thai people and pay vast amounts of tax is never considered.

But to go after businesses like this well why don't they see if all the local Thai businesses pay tax etc...

And then what about the Thai businesses at the sides of roads etc...

One rule for their own, another for foreigners.

Posted by RaR on January 3, 2012 20:28

And of course all the friendly tuk tuk drivers are paying tax from their cash cow lil business, returning it to thailand.

Posted by Anonymous on January 3, 2012 21:29

The reason foreign run businesses work is because they know what they are doing.

When someone has a good idea, people get jealous and can't compete.

So this is what they have to try and stop someone who is more clever than them from making money.

Posted by Tbs on January 3, 2012 22:13

Finally Thai people are going to justice they deserve. Remove all these cheating farang and ban them for life. They are just take advantage of loopholes in the Thia legal system! They are criminals and would be in jail in their own country if not "running a business" in Thailand.

Posted by Somchai Rapeepat on January 3, 2012 22:20

I can not agree totally with the NO Ex pat rules. I live in a Very Modern World and Phuket reminds me of the 1950's with telephone wire touching your head as you walk down a street. Ex Pats Bring Information and Know How to an Island that needs to become modern if only in the Basic Needs of Safety and Quality of Life. As Far as the 1000 small shops set up taking away business from mom and pop shops, Yes, feel free to tell the tailor shops to close the doors because there is No Thai help or the Slave Labor to make Their products.
But when It comes to Building an Infrastructure that Phuket Needs Badly such as Transportation and Modern Buildings. Not Another Hotel or condo Built by Burmese wear Flip Flops walking a tight wire up high. I say Thailand needs some help. You don't see Ex Pats with Jet Ski Rentals do you? But yes things like the Exclusive Russian Tours that don't use Thais, That have there own Hotels, CLOSE Them Down. If I Had a business in Phuket, as I hope to when I retire, it will be All Thai staff at an honest pay, not minimum wage. I say you need to screen out the bad apples in Expats as well as Bad apples in TAXI's.

Love You Phuket !!

Posted by John of Vegas on January 3, 2012 23:16

Hopefully this will mean a few tens of thousands fewer foreigners living in Phuket if these who flout the law are deported. Phuket was great about 20 years ago when Thais vastly outnumbered tourists AND expats put together. Now I sometimes wonder, am I in Phuket or Vladivostok?

Posted by Jeremy Jones on January 4, 2012 03:46

Ed, Whistle-Blower has a rubber stamp made with that statement. He uses it everywhere.

Posted by agogohome on January 4, 2012 11:04

@agogohome - Ed, Whistle-Blower has a rubber stamp made with that statement. He uses it everywhere.

Not at all, but the message from proper registered Thai companies looks to be listened by some decision-makers in Bangkok.
It is not late to correct a wrong....

Posted by Whistle-Blower on January 4, 2012 12:12

pre sold packages. Sorry i do not get it. Packages are always presold, even you book through a highly reputed travel agent like say Thomas Cook. You pay your package in the UK. The hotels, tours,airlines provide you with the service invoice the agent and get paid. This "paid money" filters 100% into the local economies, it pays the salaries of people, buys the food the guys eat, pays the hotel room, the hotelier pays tax on. Explain again that pre paid packages is money that does not arrive in Thailand? It only does not arrive in Thailand if the company who services the customers in Thailand is not registered and therefore operates illegal. If the CSI closes them down, well done, so we have level playing field.

Patong Hotelier

Posted by wm on January 5, 2012 11:15

@wm - pre sold packages. Sorry i do not get it. Packages are always presold, even you book through a highly reputed travel agent like say Thomas Cook. You pay your package in the UK.

DSI is not talking about foreign companies located abroard but about the so many foreigners setting-up touring, diving and yachting companies in Thailand and Phuket which are selling through websites hotel, tour, dive and yacht charter packages in Thailand or oversea countries when most of the payments is done on the website to abroad countries to avoid taxes in Thailand (PayPal by example).
If the selling is done by a Thai company located in Thailand, money must be paid to a company account in Thailand before forwarding to oversea contractors.
They are by hundreds in Phuket itself.

Posted by Whistle-Blower on January 5, 2012 14:00

What I understood before moving to Phuket was that ex-pats could not own businesses in Thailand, yet with the 'silent partner' loop-hole this will continue to happen. Thailand needs to place laws that are Held To. Not allow people, both Thai and Ex-pat, to pay off individuals to continue illegal and ill-run businesses.

Posted by Blue on January 13, 2012 09:02

Whatever happened to Scammy - I mean Stoney - Monday and Rell Hayes?

Posted by Tanya Millibank on January 23, 2012 21:04