What are the advantages and disadvantages of forming a company for the purpose of owning land?
The main advantage is that it allows foreigners to acquire ownership interest in freehold land in Thailand. Unlike land leases, the ownership is permanent as long as the company stays in existence and does not sell or transfer the land. Forming a company may make sense for people seeking to hold land for long-term or investment purposes, to provide for their future heirs, or for those contemplating doing business in Thailand. Also, with ownership, it is possible to mortgage the land and/or subdivide the land for resale. These are not normally fights conferred by land leases. Many foreigners consider hiring or using Thai shareholders to act as their nominees when using a Thai company to buy land, The main problem with Thai nominees is that once they become shareholders, they have legal share ownership of the company and are no longer nominees Although you can reduce the shareholders control of the company, other mechanisms must be put in place to legally protect your interest. Another i
