Is the end near for many farang business owners in Pattaya?

Thailand is Cambodia's neighbor to the West, and this forum is dedicated to Thai news, stories, reviews, blogs, videos, Thai people and anything else related to the country. A lot of expats have both lived and worked in Cambodia and Thailand, and this area is a place to discuss all aspects of life in Thailand and what's going on there. Most topics are about Bangkok and Pattaya because of their larger populations of expatriates and tourists in those cities, but this is for all things Thai.
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Is the end near for many farang business owners in Pattaya?

Post by Soi Dog » Fri Aug 22, 2014 7:48 am

How many guesthouses, bars and restaurants in Pattaya are in reality owned outright by farangs, but on paper the business is owned by a "company" with a few Thai nationals' names on the official government register? The answer is very, very many. Those farangs are shitting their pants right about now. How many of them get their business visas and work permits through their own "company"? Some stand to lose everything, if, in fact, their registered Thai partners are not actually involved in the running of that business. Old law, but brand new push for enforcement. I hope the junta gets a nice long run in power. This shit is getting interesting. It's a fascinating social experiment.
pattayaone.net wrote:Thai Nominee Shareholding Crackdown in Pattaya announced by DSI
Posted on August 22, 2014 at 1:16 am

On Friday at Nong Nooch Gardens in Jomtien, a meeting led by the Department of Special Investigations (DSI) was held to discuss plans to begin a crackdown on foreign business people who use Thai Nominee Shareholders to effectively control Thai companies.

At the meeting were over 100 delegates from the DSI, The Ministry of Commerce, Tourism Authority of Thailand and representatives from the public and private sector. They gathered to discuss how some Foreign business operators have exploited the Thai Nominee Shareholding loophole for many years, despite it being illegal under the Foreign Business Act of 1999.

The DSI would now like to see this loophole closed and investigations started on companies which use Thai Shareholders but are effectively controlled by Foreign Nationals.

They are particularly concerned with businesses associated with Tourism and at the meeting discussed how departments can cooperate better in the future to ensure these companies are detected and prosecuted if found to be in contravention of Thai Law.

- See more at: http://www.pattayaone.net/pattaya-news/ ... gl5Vs.dpuf" onclick="window.open(this.href);return false;
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Re: Is the end near for many farang business owners in Patta

Post by phuketrichard » Fri Aug 22, 2014 8:24 am

for sure and not just Pattaya but all over the country.

i would say most Farang run businesses, the money invested comes from the Farang, the business is in a thai's name and 51% of the shares are in thai nominee names ( unless its an American company where no Thai's need be shareholders) and 4 employees ( ghost employees at times) are placed on the legal papers. Lawyers set up paperwork that the shareholders sign that they grant all their voting rights to.....

It used to be on the books that all shareholders must be able to prove where their % investment came from but this was never put into practice

If they really pursue this along with the current visa exempt crackdown.....

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Re: Is the end near for many farang business owners in Patta

Post by notax » Fri Aug 22, 2014 11:32 am

well they warned about this long time ago but nothing happend and now its time.On top of all the visa BS, this will kill many business in all turist areas for sure.
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Re: Is the end near for many farang business owners in Patta

Post by phuketrichard » Fri Aug 22, 2014 2:21 pm

change;
this will kill many business in all turist areas for sure.
to'
this will kill SOME ( less than 10%) business in all turist areas for sure.
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
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Re: Is the end near for many farang business owners in Patta

Post by Drifter » Fri Aug 22, 2014 2:27 pm

hahaha yet again this new crackdown will backfire on the thai tourism.

as usual the thais have a hard time thinking in terms of action/reaction, the reason so many farangs have to do these tricks is because of the ridicolous visa rules in thailand and their outright anti-foreign xenophobia in business.

all these guys running bars and guesthouse would be more than happy to be fully legal but they just can't.
you reap what you sow.
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Re: Is the end near for many farang business owners in Patta

Post by Drifter » Fri Aug 22, 2014 2:33 pm

phuketrichard wrote:change;
this will kill many business in all turist areas for sure.
to'
this will kill SOME ( less than 10%) business in all turist areas for sure.
yeah but it's still a lot of money that will not come back in their pockets.
these guys will move to Philippines or Cambodia and sooner or later even the sex biz will move elsewhere.

besides, new crackdowns can pretty much put the nail in the coffin, i think the junta is not as tolerant as their predecessor about the ongoing unregulated sex trade.
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Re: Is the end near for many farang business owners in Patta

Post by OrangeDragon » Fri Aug 22, 2014 6:49 pm

i wonder... how much do those 10% account for the enjoyment of tourists there? as in, an english bar run by an englishman probably has more appeal to english tourists than an english bar run by a thai guy.
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Re: Is the end near for many farang business owners in Patta

Post by Drifter » Fri Aug 22, 2014 7:35 pm

OrangeDragon wrote:i wonder... how much do those 10% account for the enjoyment of tourists there? as in, an english bar run by an englishman probably has more appeal to english tourists than an english bar run by a thai guy.
the worrying trend is : they just don't want us, and where we're allowed to run biz they still put lots of red tapes and discriminating laws.

i'm free to open a shack selling cheap beer in HK, Macau, Korea, Japan, Taiwan, Singapore, but most of the rest of asia is against me as a foreigner and will not allow me to buy land nor to get a citizenship or permanent residence, on top of this they can change visa rules overnight, i'll have to bribe the police or the local mafia, and facing the unfair competition from the local suppliers and deal with widespread corruption every fucking day, and since i'll have to make my biz a sort of joint venture with my wife or a local business partner i'll also run the risk of being totally screwed behind my back.

still thinking about making biz in Thailand ? think again ...
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Re: Is the end near for many farang business owners in Patta

Post by Soi Dog » Fri Aug 22, 2014 8:09 pm

My guess is that only some popular bars and guesthouses will be affected. They can't really be considering shutting down out the Italian owner of an authentic Italian restaurant. The Russian owners of the big Walking Street Go-Go bars should be concerned, though.

I have heard so many times from whinging expats how Thailand "needs" farang punters for their money and their business abilities, or the Thai economy would collapse. I always knew that to be bullshit. Maybe it was partially true at some point in the past, but not even remotely true anymore. Tourism is only 10% of the Thai economy and farangs are only half of that. Considering that probably 95% of farang tourists won't notice any difference under any of the recent law enforcement drives, we are talking about a tiny percentage (5% of 5% = 0.25%) of the GDP even remotely affected by these crackdowns. Those actually affected, like me, however, make up a sizable majority of the local forum posters/bloggers, and let's face it...it's a good story to discuss. It gets local expats riled up, out of the fear of uncertainty. Well blown out of proportion, but still good for page views and arguments. :)
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Re: Is the end near for many farang business owners in Patta

Post by Username Taken » Fri Aug 22, 2014 9:45 pm

Drifter wrote:. . . sooner or later even the sex biz will move elsewhere.
The best we can do is hope that it's not New Zealand or Tasmania. :whip:

:shock:
... give 'em a quick, short, sharp shock ...

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