Mackenzie Smith Group was first incorporated in Thailand in 1999
Consisting of 4 Member Companies
Group Paid up Share Capital 86 Million Baht
Mackenzie Smith Management Co., Ltd
Auditors:
RSM Thailand
Accountants:
Mackenzie Smith & Partners
Company Lawyers:
Mackenzie Smith and IBC
Company Address:
Somkid Place 6, Soi Som Kid, Pleonchit Rd, Bangkok
You want to invest in Property in Thailand?
You want to live in the same Property in Thailand?
You want to sell the Property and enjoy the increase in value?
You want to transfer the Property into another family person’s name after you have gone?
But you do not want an lllegal Thai Company with Thai Nominee Shareholders.
WITH 51% THAI FULL VOTING RIGHTS THAT THEY COULD TAKE OVER
THE COMPANY AND THE PROPERTY IT OWNS!
We at Mackenzie Smith have set up a new structure that can meet all of your requirements!
Ministry of Commerce Friendly
Business Development Friendly
Inland Revenue Friendly
Land Department Friendly
HOW IT WORKS?
The client asks Mackenzie Smith Management to purchase property of their choice.
The client signs an investment agreement and invests monies with
Mackenzie Smith Management Co Ltd., a 100% Thai Company.
100% of the money is used to make the purchase.
The property is registered with the Land Department and a Lien on the property title deed can be written in the client’s name.
Because of the Lien; The Land Department will not allow the property to be sold unless the client agrees to the sale.
The property can be kept for an unlimited period.
When the client wishes to sell the property he asks Mackenzie Smith Management to sell the property, less tax, agents selling fees and legal fees.
The full value of the sale of the property is returned to the client.
EXIT STRATEGY
The client asks Mackenzie Smith Management Co Ltd to sell the property
and is subsequently sold.
Subject to an increase in value of the property,
the client receives 100% return of their initial capital.
Subject to an increase in value the client receives 100% of the increase in value
from the purchase price to the sale price, less taxes,
selling agents fees and legal fees.
FREQUENTLY ASKED QUESTIONS
What happens if the company goes bankrupt?
A development company or a business with any other trading activity, that even through no fault of its own, can go bust.
Mackenzie Smith Management Co Ltd only holds property and does not trade in any other activity. So it cannot go bankrupt.
Mackenzie Smith Management Co Ltd is managed by professional people that work also for Mackenzie Smith Co Ltd which is regulated by the Lawyers Council of Thailand (which is the same as the Law Society of most other countries).
What happens if the client dies?
Unlike when a person dies holding a Thai company where the whole company structure has to be closed, In this case the investment can continue or the property can be sold without any complications with the sale proceeds going to the immediate relative.
The investment agreement can be put in a Will and left to a relative or friend.
What happens if there is no Will?
Then whoever claims the estate providing the Thai court agrees can take over the investment.
What happens if the beneficiary relative or friend wants to sell the property?
They can as if they were the original owner.
Why is it dangerous to own a Thai company owning a Thai home?
FACT under Thai Company Law there is no such translation from Thai to English of the word NOMINEE. So Thai shareholders have the same rights as a foreigner.
FACT a Thai company has to be made up of a minimum of three shareholders where the majority has to be Thai nationals.
Which means the Thai shareholders can out vote the foreign shareholder.
FACT the Thai shareholders can become Directors themselves and remove the foreigner from being a Director.
FACT Thai Directors and Shareholders can sell the property.
In such circumstances the foreigner has the right to take legal action against the company and if they won, the court would force the sale of the property by public auction, where the foreigner or the company have no control of the value if the sale.
It may be possible for the foreigner to get back their original investment money if successful in court, however if the property has risen in value the surplus would be shared out amongst the Thai shareholders.
Summarize purchase of land for a Thai Limited company which have the foreign share holders or the foreign directors of the company.
According to the provision of land code section 74 which give the power to the land officer to investigate in to the source of the money which use for purchasing the land.
If the land officer has any suspicion that the shareholder’s in that company are a nominee for a foreigner, whether the foreigner is a director or a shareholder of the company. Further investigation will be initiated, including investigate the income of the Thai shareholders.
If found, by the land officer that the company limited purchase the land by avoiding the law which requires by Thai law through a nominee according to the land code section 94 and 96 the company will be force to sale the land.
The criminal charges for a foreigner are as follow:
According to the land code section 111 stated: Whoever, violated or does not act accordingly as stated in section 86 or 102, shall be fine not exceed 20,000 THB or imprisoned not more than 2 years, or both.
The criminal charges to the Thai nominee are as follow:
According to the Thai criminal code section 267 stated: Whoever, notifying the official doing ones duty to make any false entry in the public or official documents for the aims to be used as evidence, shall be imprisoned not more than 3 years or fine not exceed 6,000 THB, or both.
Thai criminal code section 137 stated: Whoever, giving any false information to any official, and is likely to cause injury to any person or the public, shall be punished with imprisonment not exceeding 6 months or a fine not exceeding 1,000 THB, or both.
The land act section 113 stated: Whoever, act for a foreigner as a nominee in order to hold the land, shall be punished with imprisonment not more than 2 years or a fine not exceed 20,000 THB, or both.
The charges to the limited company are as follow:
The land act section 112 stated: If a company acquire a land by violating this act or avoiding the law, shall be fine not exceed 50,000 THB
Thai limited company which have 49% of the shares holded by a foreign company
According to the land act section 74 gives the same power as the above mention paragraph in clause (1). The important issues which the land officer will pay very close attention to are:
Where are the monies coming from investigate financial statement of the company.
What is the main purpose of the Thai company which is the purchaser of the land?
If the company objective is in the purpose of selling the land or leasing or it is against the company objective which is registered at DBD. (Which is one of the most important issue that there are going to investigate into)
WHAT IS THE COST FOR THIS FAR BETTER STRUCTURE AND SERVICE?
We have compared prices to set up a Thai company and register the property with the land department.
The cost from lawyers and accountants offering this service is in the region of 50,000 THB for both the company incorporation and the property registration at the land department.
The monthly annual accounting and audit costs do differ greatly depending on the standard of service used. The Inland Revenue reporting that the owner of the company is willing to pay.
If the foreign company owner is reporting on a monthly basis to the revenue, which is how all normal companies are run, then accounting costs alone will run into at least 100,000 THB a year.
Plus an annual audit fee of a minimum of 40,000 THB.
If however the foreign company owner is not reporting monthly, its annual accounting bill would still be about 35,000 – 40,000 THB.
Plus annual filing of end of year accounts with cost of 15,000 – 25,000 THB.
So a total accounting audit cost of between of between 65,000 and 140,000 THB is likely.
Plus in the first year a minimum of 50,000 THB for company registration.
HOWEVER FOR COMPANIES WHO ARE NOT REPORTING PROPERLY THE RISKS ARE HIGH FOR FINES AND PENALTIES FROM THE INLAND REVENUE From 50,000 – 300,000 THB has been charged recently.
We have found evidence of companies who do not file any accounts, at anytime in any year, these are just examples of owners who most likely will go to prison and forfeit their properties.
Mackenzie Smith Management costs are as follows:
The Set up of your Structure.
The Purchase of the Property.
The Registration at the Land Department.
The Lien on the Property at the Land Department.
The cost will be 50,000 THB.
The service fee paid every year will be 50,000 THB.
So a far safer structure, no Inland Revenue problems, no land department problems and far lower running costs.
WHAT IS YOUR NEXT STEP?
IT IS SIMPLE JUST CALL US AND MAKE AN APPOINTMENT TO MEET US.
OUR OFFICES ARE IN BANGKOK.
HOWEVER WE ARE IN PATTAYA 2 - 3 DAYS A WEEK SO WE CAN EASILY MEET YOU HERE AND WE ARE OPENING A NEW OFFICE IN PATTAYA SHORTLY.
OUR TELEPHONE NUMBERS ARE: 02 255 6496 or 02 255 6498 or 02 655 5737 (12 LINES).
OUR FAX NUMBERS ARE: 02 255 183 AND 02 655 5736.
After hours telephone number from 09.00 - 19.00 hrs Monday – Saturday
TEL: 081 820 4192
EMAIL: info@macsm.com or info@macsmlaw.com
WE CAN SPEAK TO YOU IN FLUENT ENGLISH AND THAI.
OUR LEGAL DOCUMENTATION YOU WILL BE ASKED TO SIGN WILL BE IN YOUR OWN LANGUAGE AND NOT IN THE THAI LANGUAGE.
Bangkok
Law Firm: ( Chidrom Road which near Central Chidrom )
1st fl, Somkid place Soi Somkid Ploenchit Road Bangkok 10330 Thailand Tel: (+66) 02-255-6496Fax: +66 (0)2-255-1853 Email:contact@macsm.comOffice
Map:MS
Bangkok
Pattaya
Law Firm: ( Central Pattaya Road between Foodland and Big C )
1st fl, 503/4 moo9 Central Pataya Road Nongpue Banglamung Chonburi 20150 Thailand Tel:(+66) 038-489-136 Email:contact@macsm.com
Mackenzie Smith Group was first incorporated in Thailand in 1999
Ministry of Commerce Friendly
Why is it dangerous to own a Thai company owning a Thai home?
