Transcript of the above video:

As the title of this video suggests, we are saying, “yes it is illegal” in Thailand. Now I could be making this video about any number of things. Primarily what I'm making this video about is the practice of using various chicanery if you will, various methods of subterfuge using corporations here in Thailand to circumvent the Foreign Business Act, and specifically to circumvent the provisions of Thai Law that restrict foreign nationals from owning land. Let me get into it and then we will get into analysis. 

I thought of making this video after reading an article from the Phuket News, that is thephuketnews.com, the article is titled: DSI raids Phuket accountants over Bt440 million in nominee companies. Quoting directly: The Department of Special Investigation," so let's start from there - the Department of Special Investigation - this is like Thailand's FBI; this is not to be messed with. "DSI has raided a legal accounting firm based in Chalong that is now under investigation for its involvement in facilitating nearly 70 foreigners illegally operating companies with holdings worth an estimated total of Bt440 million." It goes on to say: "Major Suriya said", and Major Suriya just to be clear, DSI Director-General Police Major Suriya Singhakamol so this is the Director-general of the DSI; that is like the equivalent of the head of the FBI in the United States, basically, the way I look at it. Well maybe National Police, DSI, it's special investigations but it's pretty high level stuff and it is definitely nationwide. "Major Suriya said that the root cause of the wrongdoing comes from law firms that prepare the accounts. Quote and this is key, you really need to listen to this: "It is the starting point to persuade some foreigners to believe that the practice is legal. Meanwhile some people already know it is illegal, and come to use the services of the law firm in submitting a company registration," he said." What he is talking about here is the use of a company as sort of subterfuge if you will, to circumvent Thai Laws regarding restriction of property to foreigners. Foreigners are not allowed to own land in Thailand so folks will come in and they'll set up a company or they will use somebody to set up a Thai company to act as basically a patina of Thai ownership so that they can then basically as a practical matter, own the land. 

I have told people this for years; yes I have made other videos. There are limited circumstances where it may be possible for a foreigner to own land; it is very, very rare. Back since 2000 I think there has been eight cases where that's happened directly. It involves the signature of the Minister of Interior as a practical matter, it just isn't done. Secondly, yes there may be certain circumstances where a Thai Corporation may own land wherein a foreigner has some level of control within the corporation for example under certain Industrial Estates and then you have also got situations, usually involving a husband-wife situation, where they may be running a company together and they may have some small operation; I often think in terms of like a shop house operation and they may be owning that sort of in tandem. Again the foreigner is going to be the minority but again there may be circumstances, may be circumstances, where it may be appropriate but it is rare and we are not really talking about that here. What we are talking about is people that come in, they just set up a company in order to sort of act as a blind if you will, act as a front for purposes of owning the underlying property. Again, I really should just quote this again because it just puts as fine point on it as it can because I talk to people all the time, they will say things like "Well everybody's doing it and nobody cares. They're not going to enforce against it." Yeah they do care. Quoting again: "Major Suriya said that the root cause of the wrongdoing comes from law firms that prepare the accounts. It is the starting point to persuade some foreigners to believe that the practice is legal. Meanwhile some people already know it is illegal, and come to use the services of the law firm in submitting a company registration," he said."

I hope it is clear from this video we are trying to do the exact opposite. I want people to be aware of what the situation really is because I don't want to see people get into a position that they are in a really detrimental position to themselves; they are in a really negative situation that they are not able to extricate themselves from in the sense that they may lose the money they put in which could be substantial; they may even be facing other penalties, it could be really bad stuff. And again, I am not doing this to scaremonger, I am not doing this to freak people out, I've been accused of that many, many times. I don't make money on this channel; this channel is not monetized. Obviously it has a promotional element to it. If you can't tell that from the brand being all over the thing I mean I don't know what to tell you. But yes, there's a promotional element but I've been doing this for 7 years and I don't make money off of this channel directly. I am doing this because there's a lot of erroneous information out there in the ether of the internet and it causes people oftentimes acting in good faith, most people who get into these kind of situations are not doing it from a place of bad faith where they are intentionally trying to circumvent Thai Law. As noted in that quote unfortunately there are bad actors out there that will tell foreigners "hey it's no big deal, don't worry about this, you can do this, that and the other thing", and they just shuck and jive as they say that you can do it because probably they want to get some money for setting up the company, whatever, but at the end of the day it is illegal.