News for Investors

[XxSMIL3xX]

Μπορεις να μου πεις τι αποδοσεις αποδιδουν αυτα τα ακινητα?
Π.χ στην Αγγλια(εκτος Λονδινου) δινουν 5%-6% καθαρα.Στο Λονδινο σαφως λιγοτερα 2%-3% αλλα εκει αυξανεται πολυ το capital growth.
Τα student pods δινουν απο 8%-10% συνηθως εγγυημενο απο 2-5 χρονια.
Τα hotel rooms απο 10%-15%.

Επισης μηπως γνωριζεις την φορολογια?
Visa δινουν εαν αγορασεις κατι?

[halfway inn]

Μπορεις να μου πεις τι αποδοσεις αποδιδουν αυτα τα ακινητα?
Π.χ στην Αγγλια(εκτος Λονδινου) δινουν 5%-6% καθαρα.Στο Λονδινο σαφως λιγοτερα 2%-3% αλλα εκει αυξανεται πολυ το capital growth.
Τα student pods δινουν απο 8%-10% συνηθως εγγυημενο απο 2-5 χρονια.
Τα hotel rooms απο 10%-15%.

Επισης μηπως γνωριζεις την φορολογια?
Visa δινουν εαν αγορασεις κατι?

Thank you for asking.

You may find your answers here:

http://pgthai-realestates.com/FAQ.php

http://pgthai-realestates.com/Finance.php

http://pgthai-realestates.com/Legal.php

and if you still have questions, and/or for your private consultation please contact us
here: http://pgthai-realestates.com/Contact-Us.php

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Investments in Thailand

WHY PROPERTY BUYERS SHOULD NOT LOSE FOCUS ON THAILAND!

Ever since protests started a few weeks ago in the Kingdom, investors have shown apprehension towards buying property in Thailand and in particular in Bangkok and this situation is not likely to change in the near future-at least from an overseas perspective.

Indeed Thailand has been recently elected among the top ten most-searched countries worldwide in Bangkok and elsewhere in the country condos portals and although the protests have been largely violent-free so far, the country may not keep its status in the following months unfortunately.

PG Thai Real Estates and JT Easy Business & Property Group are cooperating with several foreign investors such as Korean & Singaporean investors and it appears the country advises its citizens to be careful towards investing in the Kingdom for two weeks already.

Some of our clients mentioned their fear and confirm the general opinion in Thailand and in particular in Bangkok was not positive as of now.

In fact, a lot of investors expect that in Thailand condo projects and in particular the Bangkok condo projects for sale prices to drop during the political instability but it is not certain to happen.

Actually, there was no decrease at all in Bangkok property prices during 2008 and 2010 riots in Bangkok. Instead, prices rose substantially.

Basically, the explanation is pretty simple and could be exposed as follows:
Thai buyers, who count for about 90% of the whole market, will continue to buy as they are used to this unstable political situation in the Kingdom.

From a local point of view, these protests are not so much of a big deal.

In fact, Thailand has known an incredible number of coups and state of emergencies and the current riots in the city are just another illustration of how Thai people do things.

With prices that remain attractive as compared to other major cities in Asia, Thailand Real Estate and in particular Bangkok Real Estate still deserves huge attention from property investors who shall come back in force when the calm returns.

[halfway inn]

LAND PRICES IN BANGKOK

Land prices to continue to rise in Bangkok

BANGKOK: -- Despite the current political turmoil, the demand for prime land in Bangkok's central business district for investment remains robust, according to CBRE

The real-estate services firm does not expect the political problems to have an adverse impact on CBD prices because there is a limited supply of freehold prime land in central Bangkok.

There are few willing sellers and most is held by cash-rich owners who inherited their family land. Landholding expenses are very low as most land was not acquired through debt financing.

There is virtually no landholding tax and no inheritance tax. This means most landowners have very little pressure to sell.

Transactions normally occur when the potential vendors are sufficiently enticed with a record-breaking offer price.

Over recent years, land prices have been driven upwards by developers buying sites to build condominiums for sale.

This is because condo developers have been able to outbid other types of property developers because of the high margins and quick project turnover.

Historically, land investment in Bangkok's CBD has provided one of the highest investment returns, with about 15-per-cent year-on-year increases over recent years.

This has enticed wealthy families to buy land and construct income-producing developments despite low initial income yields because they are attracted by the capital gain driven by land values.

Kulwadee Sawangsri, head of investment and land services at CBRE Thailand, said the price for a prime site on Sukhumvit Road had increased by about 480 per cent since 2002 to Bt1.5 million per square wah (Bt375,000 per square metre), the highest percentage increase of all of Bangkok's prime areas.

This is followed by the Silom/Sathorn area, with an increase of about 400 per cent to Bt1.4 million per square wah, and the Ploenchit/Lumpini area at about 320 per cent to Bt1.5 million per square wah.

There have been significant land-price increases in some suburban areas where construction of new mass-transit lines has triggered an increase in demand for condominium sites in areas such as Rathanathibet along the Purple Line route.

Rathanathibet prices have increased by 30-50 per cent per year since the start of construction on the transit route.

CBRE expects that expansion of the mass-transit system will have similar effects on land prices in other suburban areas.

CBRE believes that the centre of Bangkok will continue to be the most sought-after location for the best-quality offices, hotels, shopping centres and residences.

This means there will be continued demand in the future for the limited number of prime development sites in the CBD.

"Prime CBD sites in Bangkok remain in high demand. Currently, vendors are asking future prices for their land, as there is no pressure to sell.

I believe that the land market will remain active this year if vendors are willing to deal at the current market prices," Kulwadee said.



the nation

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THAILAND: INVESTMENT HAVEN

Yingluck says Thailand remains investment haven for foreigners



Thailand remains a country with strong economic fundamentals and investment haven for foreigners, caretaker Prime Minister Yingluck Shinawatra said today.

She did not appear in public place to perform official work after the People’s Democratic Reform Committee leader Suthep Thaugsuban announced to pursue her to the end following the bloodiest suppression at Pan Fah bridge which left four protesters and one police dead and more than 70 injured on February 18.

Posted on her Facebook page for three consecutive days, Ms Yingluck said Thailand’s economic fundamental remains solid and sound, attributing to World Bank’s ranking of countries on their ease of doing business that placed Thailand on the 18th place.

She also said that the upcoming Asean Economic Community (AEC) will also add attractiveness to investment of the country.

She said a key factor for decision making is confidence and cited promotion privileges sought by foreign investors last year amounted to 5% of GDP, which confirmed that investment confidence remain in satisfactory level.

She said a total of 2,237 projects sought promotions from the Board of Investment last year with investment value over 1,110 billion baht and expected creation of jobs to over 200,000 people. Among the projects seeking promotions, 1,132 projects are foreign direct investment of 524 billion baht.

For this year, she said political turmoil forced difficulties for her caretaker government to perform duties, particularly duties that needed recommendation from the Election Commission.

As the result, it has disrupted approval of promotion by Board of Investment for projects with investment value of almost 500 billion baht.




thai pbs(21-02-2014)

[Oytopikos]

Foreign investment in Thai property market gathers pace

 

BANGKOK:-- Foreign property companies from China, Hong Kong, Israel, Singapore and Japan are expanding their investment in Thailand's property market via joint ventures with local players for the development of both residential and commercial buildings.
 
Charn Issara Development has formed a joint venture with investors from China and Hong Kong to develop a Bt3-billion mixed-used project, the Baba Beach Club, in Phang-Nga province.
 
The project, which comprises detached houses, condominiums and a hotel, will commence construction next year.
 
Major Development has established a joint venture, TMDC Construction, with Bt100 million of registered capital with an Israeli construction firm, Danya Cebus, and Hong Kong's CRG Global Investment.
 
The Thai company holds 51 per cent of TMDC Construction, while Danya Cebus holds 45 per cent and CRG Global Investment accounts for the remaining 4 per cent.
 
Nirvana Development, meanwhile, is negotiating with two property funds from Japan and Singapore that are interested in investing in a Thai developer.
 
The company expects the deal to be finalised in March, before it applies to be listed in the Stock Exchange of Thailand.
 
Earlier, Japanese property firms also expanded their investment in Thailand's real-estate market by forming joint ventures.
 
Mitsui Fudosan Group did so with Ananda Development, while Mitsubishi Estate Group followed the same path with AP (Thailand).
 
Israel-based IBC also established a joint venture with Pace Development in 2009, for the development of luxury residential buildings.
 
Major Development managing director Suriya Poolvoralaks reported recently to the SET that the company's venture with Israeli and Hong Kong firms was part of an effort to increase its business advantage during a period of intense competition.
 
It is also aimed at expanding into property-development-related business in the future.
 
Nirvana Development CEO Sornsak Somwattana said the company needed more capital to expand its business during a highly competitive period, and negotiating with foreign property funds formed part of its effort to boost funding to compete with other property players.
 
Meanwhile, the company also plans to launch six residential projects worth Bt9 billion combined next year, and investment from abroad would support this plan, he said.
 
An injection of capital would also support its finances before applying for a bourse listing, he added.
 
Nirvana Development plans to increase its registered capital from Bt715 million currently to Bt1 billion next year by raising funds from the SET.
 
Charn Issara Development CEO Songkran Issara said the company's joint venture with investors from China and Hong Kong for its Bt3-billion mixed-used project in Phang-Nga was part of its strategy of managing its portfolio to support its investment plan.
 
Moreover, foreign investors are interested in expanding their investment in Thailand's property market, where they see business opportunity and strong demand, he said.
 
Condo, retail business to the fore
 
Surachet Kongcheep, senior manager of Colliers International Thailand's research department, said investors from Japan, China and Hong Kong were currently interested in expanding their investment in Thailand's property market, especially in condominiums and retail business.
 
This is largely because the Kingdom's location as a gateway to Asean will increase in significance when the Asean Economic Community comes into being next year.
 
Meanwhile, Bangkok is urbanising in its suburbs, thanks to the government continuing to expand public investment in the mass-transit system.
 
This opens up opportunities to develop residential projects in locations around Bangkok for local players, and for foreign investors keen to expand their investment in Thailand, he said.
 
"When land prices and construction costs in Thailand's property market are compared with those of other countries in the region, Thai prices are still lower, which challenges foreign investors to expand their investment in our property market," he added.


The Nation

[Oytopikos]

Ease of Doing Business:
Thailand Remains 3rd in ASEAN

Thailand once again improves its score in the World Bank's Ease of Doing Business rankings, placing 26th this year following an adjusted score of 28th for 2014. Reflecting the country's pro-business environment, Thailand ranks among the top 15 percent of world economies and is third in ASEAN.

The annual EDB report is the 12th in the series and now measures 189 economies worldwide, indicating how close their business regulations are to the best global practices. Added into this year's report is expanded data for three of the 10 topics covered; moreover, the ease of doing business ranking is now based on the distance to frontier score, which shows how close each economy is to global best practices in business regulation. A higher the score indicates a more efficient business environment and stronger legal institutions.

"An economy's success or failure depends on many variables; among these, often overlooked, are the nuts and bolts that facilitate enterprise and business," said Kaushik Basu, Senior Vice President and Chief Economist of the World Bank. "By this I mean the regulations that determine how easy it is to start a business, the speed and efficiency with which contracts are enforced, the paperwork needed for trade, and so on. Making improvements in these regulations is virtually costless, but it can play a transformative role in promoting growth and development."

By way of example of the improvements made to the 2015 rankings, in the category on construction permits the ranking measured "the qualifications of the people reviewing the building plans in addition to the efficiency of the process for completing all the formalities to build a warehouse." In fact, it is in this category that Thailand joins other countries measuring the biggest improvement: Croatia; Djibouti; Ghana; Lithuania; Madagascar; Senegal; Thailand are listed as reducing time to process permit applications. "Thailand made dealing with construction permits less time-consuming by introducing a fast-track approval process for building permits for smaller buildings. Under this category, Thailand was awarded a rank of 6, up five places from 2014.

http://www.boi.go.th/tir/issue_content.php?issueid=117;page=0

[halfway inn]

PROPERTY NEWS

Land appraisals to be finalised by next year

The Treasury Department expects to be able to complete its valuations of Thailand's entire 32 million land plots by next year, in time to be used as a base to calculate the proposed land and buildings tax.

As of last Thursday, the department had assessed the prices of 4 million land plots and will evaluate 8 million more this year, director-general Chakkrit Parapuntakul said.

That means next year's target is to assess 20 million plots.

The department plans to continue to improve regulations on building appraisal valuations by early 2017, he said.

There are 69 assessment models, complicating appraisal valuations and causing officials to use their discretion during valuation.

The plan is to reduce the assessment models to between five and 10, Mr Chakkrit said.

He said if the government could implement the land and buildings tax as originally planned by 2017, it should be able to use the new appraisals as a base for tax valuation.

Most land prices in Thailand are assessed by block, which provides insufficient detail for appraisal valuations, Mr Chakkrit said.

This could be a problem for the Local Administration Department officials assessing appraisal values for land plots and buildings if the current standard is used for tax collection.

The Treasury Department will set aside a budget of 200 million baht to hire 800 employees nationwide for appraisals.

Next year the department will ask for a central budget under the prime minister's authority worth 1.2 billion baht for additional investments in tools, equipment and a data management system.

Finance Minister Sommai Phasee has already agreed in principle to increase this budget, Mr Chakkrit said.

[Oytopikos]

Residential inventory rising




The country's top 10 listed property firms had a combined inventory - comprising undeveloped land, residential projects under construction and ready-to-occupy homes - worth Bt322.82 billion as of June 30, up 6.52 per cent from the same period last year.
Sansiri, Pruksa Real Estate and Land & Houses top the table, accounting for 48 per cent of the inventory of the top 10 residential developers.

According to a survey by The Nation, up to 30 per cent or Bt96.84 billion of the inventory is for already-completed condominiums, townhouses and detached housing.

"Normally, we have ready-to-occupy homes for sale to meet our sales average for each month and a half, or between Bt1.5 billion and Bt2 billion. This will secure our sales and revenue bookings," said SC Asset Corp's chief financial officer, Attapol Siriddipuntawat.

The remainder of its inventory is undeveloped land and projects at the construction stage, he said.

Ananda Development chief executive officer Chanond Ruangkritya said his company currently had around Bt3 billion worth of homes ready for occupation.

"We have to have the inventory in order to meet demand in the market. If we don't have the stock, we may lose potential customers," he said.

"We cannot say all of the inventory is stock, because some of it is backlog that has already been sold but is awaiting construction to be complete before transferring to customers. Under our accounting standards, those homes will be booked as revenue once they are delivered to customers," said Pruksa's managing director for condominiums, Prasert Taedullayasatit, who is also president of the Thai Condominium Association.

Of Pruksa's inventory worth Bt54.03 billion, between Bt1.5 billion and Bt2 billion is accounted for by completed homes ready for sale, with the rest consisting of undeveloped land and a backlog that will be transferred to buyers when construction is complete, he said.

"Having a high inventory does not mean our residential projects cannot be sold, because it combines our undeveloped land, under-construction residential projects, many of which have been sold and will be transferred when the projects complete, and ready-to-occupy homes, which are waiting to be sold," he added.

However, the managing director accepted that some of a developer's inventory, especially homes ready for occupation, could be a burden if sales proceeded more slowly than stock built up.

This is especially true for condominiums, because once a condo project commences construction, it is not normally possible to suspend the development process.

If sales fail to meet the target, construction will continue and the developer has to shoulder the construction cost until the project is completed, while having to wait for income to be generated from the project, he explained.

Meanwhile, detached housing and townhouse projects do not face the same problem, because the developer can suspend construction if sales fall below the estimated level, he added.

Nonetheless, most residential developers have tried to reduce their inventory, especially for condominium projects, after witnessing slower growth or a drop in demand.

For example, Sansiri has suspended new condominium launches in the latter part of this year after seeing a fall in demand, and is solely focusing on the development of condominiums under a joint venture with BTS Holdings Group.

Early this year, the company also suspended development of the Base Central Udon Thani, which was launched in 2013, after demand fell below the estimated level.

AP (Thailand) also suspended development of a condominium in Pattaya early this year when its sales came in lower than had been forecast.

Most property companies have also revised their business plans for launching further condominium projects over the rest of this year after seeing more supply in the market, but lower demand.

NC Housing now plans to launch only detached housing and townhouses worth Bt2 billion during the remainder of the year, and has suspended its plan to launch a condominium.

Sammakorn is also focusing on townhouses and detached housing, with no plan to launch condominium projects over the rest of the year.

Fragrant Group, meanwhile, has deferred plans to launch two more condominium projects by year's end, after introducing its latest condominium, the Bt4-billion Circle Prototype Condo.

The company cited a drop-off in demand for the decision.

Property Perfect is delaying plans to launch a condominium project in Khao Yai, in Nakhon Ratchasima province, and a condo located close to the Purple Line mass-transit route after seeing more supply in the area.

"We have had to revise our business plan following the market trend, and that will stabilise our financial results to stay strong durin

http://www.nationmultimedia.com/business/Residential-inventory-rising-30267606.html

[Oytopikos]

THE NATION October 12, 2015 1:00 am
THE COMMERCE Ministry's Business Development Department plans to focus its investigation on the use of Thai nationals as nominees of foreign-controlled companies in 10 business sectors where it believes the illegal practice is widespread.
Deputy director-general Chainarong Chochai said under a 2016 plan the department would tackle this practice vigorously through stringent law enforcement in a bid to prevent problems occurring under the Foreign Business Act.

The 10 sectors to be inspected are food and beverage, tourism, property rental, the property trade, car rental, spa, handicraft and souvenir retail, Internet retailing, direct sales, and education consultants.

Chainarong said that those sectors would be targeted because it was believed that a high proportion of their businesses were foreign controlled through the use of Thai nominees. He said the department would stringently investigate those businesses in an effort to prevent Thai enterprises and consumers being impacted negatively as some foreign-owned businesses were engaged in unscrupulous activities to lure consumers.

The inspection would focus on a business' share structure, investment capital, and technology transfer.

The department reported this year it had investigated six sectors - food and beverage, tourism, car rental, property rental and sales, and spa.

It said it investigated 6,175 firms in six provinces - Bangkok, Chon Buri, Surat Thani, Prachuap Khiri Khan, Chiang Mai, and Phuket - and found 13 firms were suspected of breaching the Foreign Business Act through the use of Thai nominees.

Those firms have also been probed by the Department of Special Investigation and the Revenue Department.

http://www.nationmultimedia.com/business/Crackdown-on-Thai-nominees-30270653.html

[Oytopikos]

Thailand’s Customs Department is preparing to make a 30% cut to import duties on luxury items in hopes of boosting tourist spending. The department will be holding a meeting with the private sector in January to sort out the details of the tariff reduction before forwarding the details to Somchai Sujjapongse, finance permanent secretary, for consideration.

Kulit Sombatsiri, director general of the Customs Department, stated that the new duty level must not be detrimental to domestic manufacturers.

The department’s move comes after several requests from the private sector to further promote Thailand as a shopping paradise for tourists while also encouraging local consumers to shop at home instead of traveling abroad.

The government is taking steps to stimulate tourist spending and domestic consumption in hopes of boosting economic growth, as private and public investments take much longer to produce results. In the final week of the year, tax breaks of up to 15,000 baht per individual was offered as part of an attempt to encourage shopping.

Recent estimates from the Finance Ministry project that the tax break added 0.1 to 0.2 percentage points to Thailand’s GDP for the year. This may boost GDP growth up to 3% in 2016, compared to the previous forecast of 2.8%.


http://ethailand.com/business-news/customs-department-to-cut-import-duty-on-luxury-items/1222/

[halfway inn]

FOREIGN INVESTMENTS in THAILAND

Bangkok (AFP) 13 January 2016

Foreign investment plummets in junta ruled Thailand

Foreign investment in Thailand plummeted last year, official data showed, the latest sign that the kingdom's once-vibrant economy continues to falter under prolonged military rule.

Total investment applied for by foreign companies between January and November 2015 plunged 78 percent from a year earlier to 93.8 billion baht ($2.62 billion), according to figures from Thailand's state-run Board of Investment (BoI) sent to AFP late Tuesday.

The figures will do little to cheer junta leader Prayut Chan-O-Cha, who seized power in a May 2014 coup vowing to restore stability but who has struggled to kickstart the country's lacklustre economy.

After years of impressive growth, Thailand's economy is struggling, mired in high household debt, stuttering exports and low consumer confidence.

It also faces stiff competition from increasingly attractive neighbours like Vietnam, Cambodia and Myanmar.

Particularly worrying for Prime Minister Prayut is a significant drop off in investment from Japan -- historically the largest investor in Thailand by far -- which slumped 81 percent.

EU investment also plunged from 86.7 billion baht in 2014 to just 2 billion baht last year.

Investment from the United States was also heavily down, while Chinese investment was only down slightly.

Krystal Tan, an Asia economist with Capital Economics, said the trend was indicative of deeper fissures within the Thai economy, which was among the slowest growing in the region last year.

"The 2015 [FDI] figures are very weak, indicating foreign investor confidence in the economy remains fragile," she told AFP.

"More broadly, Thailand's economic competitiveness is on the decline," she added. "The country continues to face significant challenges on the political front that have negative repercussions for business and investor confidence."

But BoI deputy secretary general Ajarin Pattanapanchai said the drop-off was due to new investment incentives, which became effective in 2015, favouring projects that employ high-tech, encourage innovation, or strengthen Thailand's role as a regional and international trading hub.

"The projects that we got last year were not much, but almost 70 percent were in our target sector," she told AFP, adding that the Board had expected FDI inflow in 2015 to take a hit.

"We understood that it would drop, we prepared for it, but it's still a little bit below what we expected," she said.

Thailand has historically been a top choice for investors in Southeast Asia, offering liberal economic policies, a skilled workforce and a strategic location as the gateway to the greater Mekong region.

But analysts say years of political instability, including two military coups, have hampered the country's economic potential -- often referred to locally as the "lost decade".

Earlier this month the World Bank forecast that Thailand's GDP growth rate would slip from 2.5 percent in 2015 to just 2 percent this year, by far the gloomiest regional prediction.

Nearby Vietnam, on the other hand, reported a record number of foreign investment in 2015 and the fastest growth rate in five years at 6.68 percent.

[halfway inn]

GLICO Ice Cream

21 January 2016

Ezaki Glico expects warm welcome for ice cream



Japanese food manufacturer Ezaki Glico Co is launching its ice-cream business next week in Thailand, its first international market outside Japan, under the well-known brand Glico Pocky.

The business will be run under a new company, Glico Frozen (Thailand) Co, established in June last year with registered capital of 200 million baht.

Glico Frozen managing director Kiyotaka Shimamori said the company will introduce Glico ice-cream products to the Thai market next Wednesday.

The products are made by Chomthana Co, the producer of Cremo brand ice cream.

Mr Shimamori said that despite the unfavourable economy, Glico remained confident in putting investment into Thailand, considering the country as its biggest Asean market with a large number of young customers.

He also said food business received minimal impact from the slow economy.

Thai Glico Co has two chocolate and biscuit factories in Pathum Thani that serve the domestic market and exports to Indonesia and Vietnam.

Its head office is on Phloenchit Road in Bangkok.

The company will spend about 300 million baht to promote Glico ice cream in Thailand from 2016-20.

It aims to earn 600-900 million baht in sales over the next five years.

According to Euro Monitor International, a market research company, ice-cream business in Thailand in 2014 was worth 11.84 billion baht in 2015.

About 55% of ice-cream products in the market are priced lower than 15 baht a piece.

The portion of premium ice cream in the market is small, increasing the opportunity for the Japanese firm to develop premium-grade products in Thailand.

Glico plans to offer four brands of ice cream in the Thai market: Palitte, Giant Cone, Panapp and Seventeen Ice.

Mikio Kusama, senior corporate officer for international operations of Ezaki Glico, said the company had been involved in the ice-cream business since 1953 and he was confident its ice-cream products would receive a good market response from Thai customers.

Apart from Thailand, Ezaki Glico plans to expand its ice-cream business in Indonesia in the second half of this year.

Glico was established in Japan in 1922 and has expanded its products for sale in more than 30 countries.

Its overall sales in 2014 were worth 93 billion baht, with 12.8% contributed by the international market.

Glico in Thailand contributes about 3-4% to the company's international business.

In 2014, Glico recorded 3.3 billion baht in sales in Thailand.

[Oytopikos]

"Ms Pongphan Jianviriyaphan, director-general of Business Development Department, warned Monday that Thai nationals should not to act as nominees of alien businessmen operating in tourism and real estate businesses or they may face a maximum three-year imprisonment and a fine of between 100,000 and one million baht.

She disclosed that officials from the department conducted a field inspection of tourism business and other businesses susceptible to alien control via the use of Thai nominees in Phuket and Koh Samui last year.

Two cases of alien business with Thai nationals acting as their nominees were found –one involving car rental service and another in retailing business – and the cases were under intensive investigation, she said.

Ms Pongphan said the Department of Special Investigation, the Immigration Bureau and the Department of Tourism had joined the Business Development Department to investigate this illegal business in Chiang Rai and Chiang Mai as the two priority targets.

Out of 44 business operators examined, two were found to have breached the law regarding alien business – one engaged in tourism business and the other in real estate business.

She warned Thais not to act as alien businessmen’s nominees in setting up businesses in Thailand or they may face heavy fines and imprisonment"

Chiangrai times

[Oytopikos]

THE Business Development Department has reviewed a new draft law and added in the document that a foreign individual cannot register a business in the Kingdom.

The move aims to prevent foreign enterprises from competing against Thais in many businesses that should be preserved for Thais.

The original draft, known as “one person, one company”, states only that a single person can register a business in Thailand.

Pongpun Gearaviriyapun, director-general of the department, said the department planned to propose the law allowing a single person to establish a new company to the Cabinet soon. The law would facilitate business growth, she said.

Currently, the law requires a company to have at least two partners for a partner company limited and at least three for a limited company.

Pongpun said the new law should help reduce costs and prevent disputes.

“If this law is enforced, the number of new businesses could double from the currently active 600,000 firms to 1.2 million,” she said. “Thailand’s ranking in the World Bank’s competitiveness ranking, or Ease of Doing Business, should improve.”

She said many small businesses would be able to reduce costs and use their time more effectively while avoiding complex registration procedures, as only one person could manage the process. The law should also reduce internal disputes.

According to a department study, 12 countries already use a “one person, one company” law. They are the United Kingdom, the United States, China, Singapore, Vietnam, Germany, Canada, the Netherlands, Italy, New Zealand, India and Japan.

If Thailand adopts this law, it will be the third nation in Asean to do so. Malaysia is also looking at adopting a similar law.

Chulalongkorn University has been commissioned to study the potential of the law, and Pongpun said all of the enterprises contacted by the university had agreed with the idea and were looking forward to a bill.

After the public hearing process, the department hopes Cabinet will fast-track the ratification process so it can become law next year. This law will include 60 articles.
http://pattayaone.net/pattaya-news/227086/sole-foreigners-barred-running-business-thailand/