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paulo100
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Last week I posted a question about office rents in Bangkok and got lots of help and advice.
Wonder if anyone can help with this one?
We want our company to take a majority shareholding in a Thai company. The owner is willing but says 49% for foreign companies to own in a Thai company is the maximum allowed under Thai law.
Is this correct?
How to get around the problem?
I assume we can have a Thai legal firm hold the excess over 49% on behalf of the outside company. Any other ways around this, does anyone know?
Finally, anyone know a really good and reliable legal firm in BK, must be English speakers?
Thanks is advance.
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Thai Girls : Meet Sexy Thai Girls
Posted on: 2:39 am on Dec. 26, 2004
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waxhead
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I am not an expert, and you really should consult an expert about this.
1. If American you can hold 100% ownership under treaty of Amity; this breaches WTO rules as it favours one nation for no reason, so this may be eliminated shortly - no one seems to know for sure what will happen; I guess it will be ok to grandfather an existing company, but new companies, er no
2. There is a subsidiary rule in certain industries that allow foreign ownership to reach 100% (I think retail is one of these) - get ready to complete a ton of paperwork
3. Set up a legal structure where you hold more voting rights, and thus have a majority
4. Find a suitable local partner in the same indsutry who is willing to hold say 49%; allocate 2% to someone under your control and you have effective control plus the benefit of local knowledge
5. in certain areas, BOI may allow you to come in
Any legal structure that effectively removes majority control or attempts to get around the 49% ownership rule may be deemed to be in breach of the spirit of the law and disallowed. HOweve,r there are a wide range of legal vehicles used which seem to have stood the test of precedents.
Additionally, the fact you are buying out another business out adds another level of complexity. I woudl strongly recommend trying a solid law firm to assist such as: Tilleke & Gibbins based in Soi RuamRudee. I have used them, and found them to be very good and professional.
ANy thing I have said may be incorrect; get a lawyer is a must for this. The boards are full of people like myself who don't really know!
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Bangkok Women : Meet Sensual Bangkok Women
Posted on: 11:28 pm on Dec. 26, 2004
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DrLove
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Actually we do have an expert on the board:
Greg from Sunbelt (he also is the franchiseholder of Subway Sandwich outlets in Bangkok). He doesn't post a lot, though.
Check out: sunbelt.co.th and see if you can get his email.
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Thai Girls : Meet Sexy Thai Girls
Posted on: 1:32 am on Dec. 27, 2004
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whitespider
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Paulo
I replied to your earlier question and said to PM me if you needed help.
Actually Doc Love has pre-empted me as I too would have recommended Greg at Sunbelt. He is VERY knowledgeable and what he doesnt know he knows a man who does. He will be able to put you in touch with the right people.
Tell him Andy Fletcher put you in touch
Spider
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Bangkok Girls : Meet Sexy Bangkok Girls
Posted on: 3:13 am on Dec. 27, 2004
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paulo100
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Guys
Great info. We would be consulting a legal firm, of course, but the two suggestions as to who to consult are a great help and thanks for the tips.
The buying company is a US corporation buying an existing company so we may be OK Waxhead.
Dr Love and Whitepider, thanks for the info on Sunbelt. I have ssen various posts by Greg of Sunbelt over the past year or so and he certainly seems to know his business.
I will try to arrange a meeting with him when I am in BK in mid January.
I know it has been said many times before but this really is the best Forum on the web. There is always someone willing to help.
Thanks
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Thai Women : Meet Matured Thai Women
Posted on: 5:11 am on Dec. 27, 2004
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