In Thailand, finding a wealthy local investor to join a business venture can be difficult for foreigners. Moreover, using a nominee shareholder who doesn’t have any real financial interest in a Thai company is completely prohibited under the Foreign Business Act.
At Antares, our experienced lawyers can guide and assist you in establishing a Thai holding company that can dramatically reduce the amount of investment on the Thai national shareholder’s side. Therefore, you need to find only a responsible and trusted person to assist you in the localization of your business in Thailand.
The holding structure will consist of two separate legal entities, an operating company and a holding company. The holding company will be created with the sole purpose of holding the majority of shares of the operating company as an investor and will not engage in business activities on its own.
The operating company will be held 51 percent by the holding company and 49 percent by yourself. The holding company will be held 51 percent by your real local investor and 49 percent by yourself. Therefore, both companies will be regarded as Thai companies and be able to engage in any business activity, without being restricted by foreign ownership or foreign business laws.
Since the holding company will have a substantially lower registered capital than the operating company, it has to require a loan from the operating company and/or head office in order to finance the purchase of shares. Via a respective loan and pledge agreement, these shares will be pledged as a collateral for this loan.
If you need further details regarding the process of setting up a holding company in Thailand and having the majority of control, please don’t hesitate to contact us. We have the experience, the knowledge, and the acumen to address any needs you may have and can advise you as to challenges you might face.