Limited Company holding land for a foreigner in Thailand
It refers to a limited liability company in Thailand that exists for the sole purpose of owning property (land) in Thailand rather than for the purpose of a business. Note that it is required under Thai law that the limited company has a business purpose and shows activity (at least on paper) and must prepare yearly financial statements and file financial accounts with the Revenue Department. A limited companies formed merely as a vehicle to own land on behalf of a foreigner is as a structure void because its purpose is to circumvent laws prohibiting foreign land ownership (section 150 civil and commercial code) and illegal under land laws because of its intention of land holding on behalf of a foreigner section 113 land code act.
Costs: yearly accounting starting at 8.000 baht each year (offices aiming theirs services at foreigners could easily ask double this amount or more). Costs for the formation of a limited company starts at 12.000 baht with the smaller local law and accounting offices, and up to approx 100.000 baht (more or less) with the foreign run and managed law offices.
Most of the formation process consist merely out of completing and submitting standard documents with the department of business registration (see translation of limited company formation documents), often additional fees are charged for complex joint venture or shareholder agreements with Thai shareholder/ partners.