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Breach of FBA costs licences
The Nation – 19 November 2007
The Business Development Department has revoked the business licences of three companies for breaches of the Foreign Business Act and summoned the executives of 173 other suspect firms.
"The department has constantly inspected foreign companies operating in Thailand under Annexes 1-3, and a few of them violated the law. Some of these companies will be fined. The most severe punishment is revocation of their licence. Since 2002, the licences of only three companies have been cancelled," director-general Kanissorn Navanugraha said last week.
The department has reviewed around 3,000 companies operating under the law, tracing back from September to 2002. It found 176 failing to comply with the law by not filing required documentation and has investigated 95 of them so far.
Out of the 95, 26 were operating without a licence, 29 had closed or relocated their office without informing the department, 17 had failed to submit proof of required minimum capital, and six had nominees holding shares for foreigners.
The government also received complaints that 12 other companies might be violating the law by having Thais holding shares on behalf of foreigners so that the companies could operate a protected business like retail, real estate, telecommunications or aviation.
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