Transcript of the above video:

As the title of this video suggests, we are discussing well, annual inspections of foreign businesses here in Thailand. I thought of making this video after reading a recent article from the Bangkok Post, that is bangkokpost.com, the article is titled: Hundreds of firms probed in nominee hunt. 

As we have discussed, look, I said it before, there was a major raid down in Phuket going back about a month and a half ago, maybe 6 weeks ago, something like this. I did a number of videos on that raid at that time; people said I was fear mongering and things. Look Thai law enforcement does not undertake major raids lightly and they don't undertake programs just sort of on a whim exactly. These things are sort of part of a greater theme if you will. so at the time they were raiding in Phuket associated with nominees and as we will get into, that has moved a little more broad and in fact, although it's not in this excerpt I am going to quote, in this article which I urge those who are watching this video to go check out, they do go into where this was and they said it was Chiang Mai and Chonburi. So initially we saw a major nominee crackdown down in Phuket and now it has gone out to Chonburi, sort of the Pattaya area and Chiang Mai. So again these things have a tendency to go broad; they tend the start small and get bigger, it has been my experience.

So again, quoting directly from the article, Hundreds of firms probed in nominee hunt, Bangkok Post, bangkokpost.com, quoting directly: "Regarding the inspection plan for fiscal 2024, Mr. Jitakorn said the Department is developing an annual inspection plan. The focus is on business compliance with Foreign Business Act requirements." And as they get into and I again I urge those watching this video, read the article for yourself, as they get into there, they scrutinized like almost 500 firms. They went around and inspected and I don't know what the posture is with all of those cases as of this time, but I suspect at least some of them are probably going to have some issues associated with that scrutiny. It is interesting to me that clearly I think Thai law enforcement is getting increasingly serious about the nominee issue and for those who are unaware, nominees are illegal in Thailand. The Foreign Business Act puts certain requirements on foreign businesses, in fact it restricts certain foreign businesses and in some instances it may require a 49/51% shareholding where a Thai owns 51% of the company but again they cannot be operating as just a straight nominee, somebody that's not involved in any way with the company where they are just sort of a name on a piece of paper and they have never even walked into the building; they don't even know where the company is; they don't even know what the company does. That's a real problem, that is illegal pursuant to Thai law. So again in the past, this nominee issue has not been a major one amongst law enforcement but as we can see that is slowly changing and I would say now slowly might not be the right word anymore as it started off down in Phuket this current wave if you want to call it that and now we're seeing it in Chonburi as well as Chiang Mai. 

So the thing that take away from this video, especially if you are looking to do business in Thailand, there are ways. As we have noted in other videos, for example Americans can avail themselves of the terms of the US-Thai Treaty of Amity which grants "National Treatment" to certain American businesses here in Thailand. That essentially overcomes any issues under the Foreign Business Act because said companies are treated as if they are Thai Companies so that is a benefit to Americans. But there may be other concessions to be had by going to for example the Board of Investment here in Thailand as well as the Eastern Economic Corridor and there also may be a license that can that can be granted Foreign Business Act itself. So there may be ways in which to get into compliance when doing business here in Thailand and for those that do feel a little bit overwhelmed by all of this, it may not be a terrible idea to contact a legal professional, gain some insight and guidance into how best to proceed.