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Home » News from Thailand » Six illegal hostels on Koh Pha Ngan closed: Dutchman arrested
Six illegal hostels on Koh Pha Ngan closed: Dutchman arrested
On Wednesday, Thai soldiers and police arrested a Dutch and an Italian man and another four Thais who ran a hostel for backpackers on the popular holiday destination of Koh Pha Ngan without a permit.
The Dutch and the Italian man were accused of operating hotels without a license and carrying out a prohibited profession for foreigners. The four Thais were accused of acting as stooges for foreign owners.
The six hostels closed by authorities are Ecco Beach, The Wonderlust, Cash-in Space Hotel, The Nomate House, Pha Ngan Arena and Slumber Party Hostel and Bar.
Action was taken after a group of hotel operators on the island recently protested against illegal hostels, which had been opened by foreigners, for offering cheaper rates and thereby penalizing local hostel owners.
Source: The Nation
if the owners were smart enough to own less than 50% on paper, it's not illegal.
And I assume if you have 6 such businesses and have made that investment that you are so smart, right…
Well, apparently not then, otherwise they wouldn't have been arrested I think.
They just don't want foreigners doing business in Thailand anymore. In the meantime, they have of course also understood that it is only on paper that the Thai have the majority.
T, I read that there was no permit for a hostel and that the gentlemen were apparently busy without a work permit. That has nothing to do with the so-called 50%.
Many think that you can do everything in Thailand and do not take the rules very seriously. However, it is often your Thai competitors who do not appreciate your taking business away from them, and they report you to the authorities.
Just make sure you have all the permits, both for the business and for yourself. Can't do that don't start that.
Everything may seem in order, but if the police can prove that the four Thai are stooges (and who therefore have nothing to do with it) then the Dutchman and Italian are very wrong.
Even if Thais own 99% of your company, you will still have to arrange a work permit.
As is well known to many by now, obtaining a work permit in that sector is virtually impossible for foreigners. That first. Secondly, the foreigners have the option to do business as a director of a company with 49.9% interest. For example, you can buy a house in the name of the company, etc. In fact, this construction is a fake construction, because you must always employ at least three Thai people and they must therefore also be at work. In practice, this is often not the case, because they are usually just Thai people who hold up their hands for their participation in this fake construction, for the annual contribution. They don't actually do anything for that. This is therefore quite easy to check by the competent authorities. Such a check can therefore also be applied to foreign house owners, who employ cat catchers on paper. Nothing is what it seems in Thailand. As long as this remains the case, I would say don't start here, because you can get into a lot of hassle with it.