BANGKOK, 30 June 2014 – The Department of Business Development (DBD) will propose to the National Council for Peace and Order (NCPO) several measures to prevent formation of nominee companies.
DBD Director-General Phongpan Jiarawiriyapan stated that the measures will require the NCPO to amend the Alien Business Act B.E. 2542 by adding an extended definition of the word ‘nominee’.
Currently the law states that a foreigner can only hold no more than 50% of a company’s share.
The proposed amendments call for greater inspection on the power of foreign committee members in a company over other committee members and an increase in the punishment terms for violators. The Director-General said authorities should be more cautious when examining the backgrounds of individuals seeking to establish a company and, most importantly, she proposed a company should only need at least one person instead of 3 to establish a company.
She deemed that the proposed measures would eliminate the formation of nominee companies.