In the previous article , we looked at various ways in which foreign nationals purchased real estate in Thailand. However, the list of the above methods did not include one more: the acquisition of real estate on behalf of a company registered in Thailand, which should include at least two more nominee shareholders. This method of buying ranks second in popularity among foreign property owners in Thailand after buying in their own name. In fact, before the adoption of the first Condominiums Act of 1979 for most foreigners, this was the only practical way to acquire real estate.
As a result, at the moment tens of thousands of foreign property owners in Bangkok own property owned by a Thai company.
“How reliable is the way of acquiring real estate by a foreign citizen when using a Thai company?” This question is most often asked in Thailand to real estate agents and lawyers.
When forming a Thai company, a foreign citizen is entitled to 49% of its shares, while the remaining shares should belong to nominal shareholders – either Thai citizens or other Thai companies. After familiarizing themselves with this condition, many potential buyers are concerned about the question whether other shareholders can not unite and make a profitable decision only for them to dispose of the company’s fixed assets (ie, real estate).
However, this is not the case. Although foreign citizens can own only 49% of the shares, they can use any number of votes at a meeting of shareholders. All shares of a foreign citizen can be privileged, giving the right to ten votes against one vote of the nominal shareholder, thus, the control is entirely yours. At the disposal of lawyers there are also some other ways to ensure that other shareholders do not have an influence on company management decisions and could be easily replaced if necessary by others.
So, provided that the company is created with the participation of a good lawyer who fully represents the interests of the buyer of real estate, a situation in which control of the company will pass to nominal shareholders should not arise.
Therefore, anyone who wants to use this method of acquiring real estate is strongly recommended to use the services of an independent lawyer representing him and his interests only, in order to ensure the reliability of the company in terms of its structure.