Foreign Business Ownership Laws Changing in Thailand

[Tom Case]

Hi,

I am involved in a business that has a company registered in Thailand. Up to now, we have been able to have 100% foreign ownership, as long as we had the right number of Thai shareholders etc.

I understand this week, that the Thai Government is thinking of changing the law, so that all companies must be at least 51% Thai owned. Seems to stem from the games that the former Prime Minister was doing with Shin Corp.

This will have a huge impact on major foreign companies operating in Thailand. We may have to pull out of the market if these laws come into effect.

Anyone else facing similar issues?

 

[Rob O'Byrne]

Re: Foreign Business Ownership Laws Changing in Thailand

Hi,

I am involved in a business that has a company registered in Thailand. Up to now, we have been able to have 100% foreign ownership, as long as we had the right number of Thai shareholders etc.

I understand this week, that the Thai Government is thinking of changing the law, so that all companies must be at least 51% Thai owned. Seems to stem from the games that the former Prime Minister was doing with Shin Corp.

This will have a huge impact on major foreign companies operating in Thailand. We may have to pull out of the market if these laws come into effect.

Anyone else facing similar issues?

Tom,

Yes we are facing problems due to these changes in regulation. Also the changes in the labour laws are quite significant. I think it now stands at having to have 8 Thai employees for every Westerner. We have basically had to stop hiring Westerners in our Bangkok office. That is fine, but it just narrows the field in terms of our recruiting ability. I can understand why these changes are occurring, but it must be damaging for business in the short/medium term.

 

[Corzhens]

Re: Foreign Business Ownership Laws Changing in Thailand

Pardon me if there are Thais here. The state of Thailand's government is still under Martial Law hence the economy is shaky. Worse the economic policy is ever changing so foreign business have that apprehension. I'm sorry to say that Thailand is not a good business venue for now maybe until the government is back to normalcy.

 

[s.smith]

Re: Foreign Business Ownership Laws Changing in Thailand

Thanks for sharing it !

 

[Corzhens]

The proposal here is the opposite of the business ownership in Thailand. We are presently at 51% ownership by Filipinos. But the president has sounded to the legislature to allow 100% foreign ownership maybe to perk up the industry in helping the economy recover from the inflation. I don't think congress will be able to come up with a law like that because it runs counter to our protective culture.

 

[AngelaPatel]

Great insight. I hope everything works out for the good.

 

[noah015]

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[Heatman]

When the law on ground doesn't suit your company's business profit motives well, then the obvious decision which should be left for the company's board of directors would be to pull the plug on the business operation in Thailand. In as much as the company's business would be affected in a very bad manner, Thailand citizens suffers a good lash-back because lots of people would have to lose their jobs. Governments should be very careful with how they set up new business polices and enforce them.

 

[valya]

• [h=2][/h]
  • Financial business is a special, independent sphere of commercial business in which specific goods are sold and bought — national and foreign currency, securities (shares, bills of exchange, bonds, etc.). In this business, money in the form of a loan is "sold" for a certain time to the buyer, who subsequently returns in full the entire amount borrowed from the lender and pays a certain percentage for using it. The latter is a kind of price of this product and provides the credit institution a certain profit.
  • [h=2][/h] 2