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Ministry of Commerce Memo 102/2549

The Ministry of Commerce Memo 102/2549 of July 20, 2006 which outlined new provisions for screening applications for establishment of Partnerships and Limited Companies and became effective as of August 15, 2006, has created quite a stir recently in the business community. This document requires applications for business license with shares of 40% or greater, or with aliens being authorized directors to disclose certain information related to the validity of funds and source of funds used to set up the company.

As reported in both the Joint Foreign Chambers (JFCCT) President's Council meeting (Aug 28) and the F4C meeting (Aug 31) a meeting was held between a representative from the Board of Trade, representatives from the Ministry of Commerce (Commercial Registration Department) and the JFCCT Chairman, Peter van Haren, during the afternoon of August 31 to discuss this issue.

Herewith the summary of the meeting.

The intention of the provisions is to reduce the burden of MoC staff in analysing applications and making the analysis more transparent/standardized among the various officers making the analysis. Not all applications will be screened for disclosure and source of fund requirements, only those as stipulated in the provisions of the memo. Furthermore it was stated that there are numerous companies that are operating in violation of the Foreign Business Act, often due to the unreliable declaration of information given during the application. Notably, this is more prevalent in provincial areas and often related to the purchase of residential/"business" property. This has necessitated the issuance of this memo.
 
The Deputy Director General responsible for this issue assured us that the provisions are only targeted at new business applicants, not companies that are restructuring (financial or management), or renewing their licenses, and not retroactive.
Only the validity and source of funds of Thai shareholders will be scrutinized, not any alien investments. This is supported by the wording in the July 20 memo stating "all Thai partners or shareholders shall submit (information concerning) the source of capital together with the request of registration."
It was agreed that the MoC will submit a letter of explanation to the Board of Trade and Foreign Chambers of Commerce to clarify these issues.
It was agreed that future similar memos should be better communicated to the private sector, either prior to release or after, depending on the circumstances at the time.
The Chairman reassured the MoC that the Board of Trade and JFCCT fully supports the existing laws in Thailand and does not condone or promote any violation of such. Further more assurance was made that JFCCT we would work cooperatively with the ministry in promoting transparent and proper practices for business operation in what ever capacity they can.

If there are any questions or clarifications related to this meeting please let send them to SATCC for relay to Mr. Peter van Haren.

Investment Opportunities in South Africa

With a continuing prospering economy, South Africa continue to present opportunities for additional investment. All the vital statistics about South Africa as well as potential opportunities are contained in the following presentations.

Medium Term Strategic Framework 2006-2009 - download PDF

South Africa's Investment Environment - Powerpoint Presentation
Coega is the solution...


Coega is the solution for a wide range of manufacturers and logistics service providers who want to be in the best position to serve both the world and African markets. The area is already served by all the world's major shipping and logistics companies. Coega is part of the Nelson Mandela Metro, which is the home of one of the most diverse auto clusters in the world - it includes original equipment manufacturers General Motors and Volkswagen, as well as over 150 suppliers, including Goodyear, Bridgestone, Corning, Visteon, Hella, Faurecia, LUK and Johnson Controls. Both OEMs and most of the suppliers are active in both the local and export markets. They are succeeding in the highly competitive global auto market thanks to their position - Coega and the metro, which includes the city of Port Elizabeth , are mid-way between the major markets in the east and west. Coega is also ideally situated for primary production as it has access to South Africa 's vast mineral reserves, as well as its strategically important position at the centre of shipping routes for ore reserves that are found in different parts of the world.

find out more atdownload the powerpoint presentation here or
visit the website at www.coega.co.za

Asia strips Africa's textile industry (www.atimes.com)
JOHANNESBURG - A few years ago, the tiny kingdom of Lesotho appeared to have a lot on offer for investors: cheap labor, generous tax incentives and proximity to the regional powerhouse, South Africa. Textile manufacturers certainly seemed to like what they saw. Taiwanese entrepreneurs started arriving in Lesotho in 2000. By investing in the country, they were also able to take advantage of the African Growth and Opportunity Act (AGOA). This United States program was set up to allow duty-free access to the American market for a wide selection of exports from countries in sub-Saharan Africa that met certain conditions, such as respect for human rights and the rule of law.

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