The Thai Department of Special Investigations (DSI) has recently announced plans to crackdown on foreign companies using Thai nominee shareholders to bypass Thai laws and control Thai companies. The foreign nationals use Thai nominee shareholders to run business operations that are restricted to foreigners or to purchase land and property. The procedure is currently prohibited by the Foreign Business Act and the Land Act. What is a Nominee Shareholder? A nominee shareholder is an individual … [Read more...] about Crackdown on Thai Nominee Shareholders
It is a great challenge for a foreigner to open and operate a business in Thailand. It is difficult to get the business up and running. The arcane bureaucratic rules in Thailand makes the process to create the company, establish utilities, and hiring workers demanding. This requires the completion of forms in a foreign language and hiring Thai employees to may not be able to communicate in English. The differences in culture can generate conflicts and disagreements between the employer and … [Read more...] about Closing a Business in Thailand
There is no definition of corporate crime in the Thai Criminal Code. Corporate Criminal Liability is imported from corporate civil liability. Corporate Civil Liability is when a company is sued in civil court for a wrongdoing by the company or in the name of the company. Corporate Crime is defined as crimes committed by individuals acting within the scope of their employment with the intention to benefit the corporation. An example is if an employee bribes government officials to ensure that … [Read more...] about Corporate Criminal Liability
There are multinational companies who want to extend their reach into Thailand without creating a separate legal entity. In this scenario, the multinational company will have two options for entering the Thai market. They can form a branch office or a representative office. Both are governed by the Foreign Business Act but they serve two different functions. Representative Office The primary function of a representative office is to provide information and assistance to their foreign head … [Read more...] about Representative Office or a Branch Office?