Thai Limited Liability Company

If a foreigner is going to operate a business in Thailand then he may purchase
the freehold of the land through his Thai Limited Company. The land will be
owned by the Thai Company, not by the individual. This form of purchasing
property is the most popular with foreign investors as the Articles of
Association can be varied to allow greater protection for foreign minority
shareholders where majority Thai ownership is required under the Alien
Business Law. Thai law requires that 51% of the shares be held by Thai
juristic persons, however, any company with more than 40% foreign interest
that purchases land will be investigated by the Central Land Office in Bangkok
(under section 74 of the Land Code) to ensure that the company has not
been organized in an attempt to circumvent the prohibition against foreign
ownership of land.

This results in the foreign ownership of the company being limited at 39%
(only if buying land), but with the recommended changes of the Articles of
Association, the foreigner can be the only director of the company, and the
only person of the company who can commit or bind the company in any
contractual dealings (buy or sell land and house), effectively giving the
minority shareholders control over the company.