Companies in Phang Nga, Phuket ‘breaches’ FBA
The Commerce Ministry says it has found 15 companies in Phuket and two in Phang Nga in likely breach of the Foreign Business Act for having a nominee structure in businesses reserved for Thais.
In two cases, foreigners were allegedly using Thai identity cards illicitly.
Sarote Suwattigul, deputy director-general of the Foreign Trade Department, said yesterday that the ministry and relevant government agencies had found evidence that those 17 firms had used Thai nominees to hold majority stakes in businesses in the FBA’s Annex III list to hide actual foreign ownership.
Two Chinese persons were using Thai IDs so that that they could hold majority shares in a businesses related in tourism. One Thai who owned one of the ID cards has been caught, while the other has eluded authorities.
The 17 companies in question were conducting tourism-related businesses such as hotels, transport companies, bus services, passenger boats, souvenir shops and restaurants.
The department has suspended all business transactions such as shareholder restructuring of the 17 firms while the investigation is deepened. If any of the companies is found guilty, the department will withdraw its business licence and take legal action.
The companies will also face an in-depth probe by the department, the Department of Special Investigation, and the Revenue Department.
If found in breach of the FBA, foreigners and their Thai nominees can be subject to fines of Bt100,000 to Bt1 million and/or three years in prison. Meanwhile, the department reported that new business registrations in the first five months of this year declined 2 per cent to 25,800.
Despite the slight drop, the department says it is still confident that the number of new companies will reach the target of 60,000-65,000 this year, thanks to the government’s economic stimulation measures and accelerating economic growth.
Last month, the number of new companies dropped by 3 per cent year on year to 4,366, but increased by 10 per cent from April.
In the first five months, 5,576 companies shut down operations, up by 2 per cent year on year. Last month, the number of closures decreased slightly, by 0.6 per cent, to 971 companies.
