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New Alien Business Act in force on
March 3, 2000
A very severe
penalty with maximum 3 years imprisonment is a major
concern for small and medium Thai companies established
for foreigners to operate business in this country. Even
though, such a company was established legally with
preferential shares empowering the minority foreign
shareholders to control the company in terms of voting
rights and dividends, such an establishment can be
construed as a violation of the New Alien Business Act as
it stipulates that Any Thai national or Thai
juristic person who provides assistance or holding shares
on behalf of the alien, including an alien who allows
Thai nationals or juristic person to conduct such act
shall be subject to not more than 3 years imprisonment or
fine of Thai Baht 100,000.- to Thai Baht 1,000,000.- or
both imprisonment and fine. As such, such an
establishment should be transformed from a Thai company
into a foreign firm as soon as possible. It is to risky
to maintain the Thai status as the intention behind is
violating the Alien Business Law. It is advisable for
these companies to acquire wholesale license, service
license and/or retail of machinery-equipment license,
whatever required, prior to the 3rd of March
as approval can be obtained easier under the present
Alien Business Law.
The
Director-General of the Commercial Registration
Department, Ministry of Commerce, alone can approve such
an application. It will be very difficult for a small and
medium foreign enterprise with capital registration of
less than Thai Baht 100 million to get the
above-mentioned licenses after the 3rd of
March, as the application has to be approved by a
committee of 21 persons comprising of high-ranking
authorities from various ministries etc. This committee
will protect small and medium Thai enterprises.
END OF QUOTE
Please click here for the full text of the
inofficial translation of the law or download it here as zip-file.
A Chakrin Chamber member release
© 2000 Trade
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