Doing Business in Thailand

The Pattaya Mail reported today that, according to sources from several police divisions a serious crackdown on Bar Businesses would begin next month that would target GoGo bars, Beer Bars, Gay Bars and any other bars which are charging bar fines to the customers to let their employees leave work early. Now according to the Pattaya Mail, the police “suspects that many of these rendezvous are sexually related”.

What is particularly intriguing, is that if Pattaya Mail is correct the police would not this time limit itself to go only after the registered directors and/or Thai employees or managers of the bars but would also investigate and targets the real owners of those type of business that is to say those that are actually paying the bars and the profits whether Thai or Foreigners.

Following the money is an interesting if not dangerous move. Dangerous because managing or owning prostitution related businesses and profiting from them may actually trigger the application of the Anti Money Laundering Law which may have very dire consequences for the potential offenders.  

While Thai are in general betters than foreigners at running entertainment business, the fact is that in area like Bangkok Sukhumvit (soi 1 to 33) Silom, Pukhet (Patong), Pattaya and Koh Samui there are 1,000 and 1,000 foreign bar owners in Thailand.

If it can be established that sex is for sale then foreign bar owners operating “bar fine” type of bar if caught red handed may see their visa revoked and be expulsed of Thailand while Thai owners would be arrested and subject to sentences to be determined.

I do not know whether the information given by the Pattaya Mail is correct and if this crackdown will happen or not and whether it will be solely localized to Pattaya or also extend to Bangkok or other location. But in doubt I would recommend to foreign bar owners to take some distances with their businesses and not anymore to appear as a shareholder, director or authorized manager/director, bank signatory of the company for the time being.

To Be Continued ….

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.

http//:www.renephilippe.com

© Copyrights 2009 – Rene Philippe Dubout – This article may be reprinted if information about the author, the websites, and the URLs remain intact.

Originally posted 2010-01-22 14:27:04.

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