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Philip says Companies need lease agreement

from Philip W To follow on from your section on owning property and the problems with a company owning land:

The reason that the legality of a company owning land can be challenged and in the worst case, the land made forfeit is that a company that is set up to merely own land is illegal as it has been set up with the purpose of circumventing the Thai land ownership laws .

Providing the company charges the occupier of the house a reasonable rent, the company is trading and therefore not illegal.

It is also quite legal for the director of the company to be paid a salary which would then enable a form of reclaiming his rent. To keep things in order and to help with the credibility of the company this salary should not cause the company to make a loss when taking other running costs into consideration.

Run it this way, pay a little tax and keep things sweet!

editor: agreed at a minimum there should be a lease agreement between the company and tenants of the house. As to the land made forfeit — I believe normally that in the event of company invalidation there is a 6 month window to transfer/sell assets.

1 Comment

  1. My pals up here in the big mango tell me that you should have a proper trading company showing a legitimate business, ie do some simple import export – don’t have to make a profit, break even – but show some legitimate trade on the balance sheet.

    (note I think we have a better class of tin table BS up here than in the little pappaya)

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