Silk Legal – Free Risk Assessment of Nominee Structures
If you operate a business in Thailand, it is essential to understand and evaluate your ownership structure. Authorities are conducting a comprehensive review of nominee structures in five key industries: tourism, real estate, logistics, warehousing, and agricultural product trade.
The Ministry of Commerce has established a subcommittee on nominee business prevention and aims to review approximately 27,000 juristic entities next year. This new clampdown on nominees stems from the recent discovery of a large number of nominee companies and complaints from local business operators.
Greater Bangkok, Chon Buri (Pattaya), Surat Thani (Samui), Phuket, and Chiang Mai are the main provinces being targeted for agriculture, real estate, and tourism.
Nominee shareholding is where Thai nationals (often a maids, driver or assistants) hold a majority stake in a business where:
- The Thai partner does not invest their own funds.
- The Thai partner uses their name and nationality to bypass ownership restrictions.
- The Thai partner lacks the financial and educational qualifications to contribute to the company.
- The Thai partner does not contribute to the running of the company.
The penalties for being found to be in breach are severe, and comprise fines, imprisonment and asset seizure for both the nominee, company directors and the investors.
What you can do.
There are legal routes to ownership, including board of investment privileges, foreign business licenses or finding a real local partner who contributes to your company.
How Silk Legal Can Support You
Silk Legal specializes in foreign direct investment and helping foreigners establish legal businesses in Thailand. Whether you need a foreign business license, BOI / EEC promotion, or assistance structuring a joint venture, our team ensures your business is fully compliant while aligning with your goals.
Legal Solutions for Foreign Investors
This isn’t the first time Thailand has considered enforcing the Foreign Business Act, and it won’t be the last.
Contact us today at [email protected] for a free consultation and risk assessment.
