Sunbelt Asia

Herman and Sherman Smith, of New Orleans, Louisiana, just lost a combined 215 pounds in seven months on a diet and exercise program that consisted mainly of Subway sandwiches. Herman lost 100 pounds while Sherman lost 115 pounds. Find out more about Herman and Sherman

http://subway.com/Publishing/PubRelations/.../pr081203-1.pdf

Sandwich artists is a very appropriate title. Check out the speed and customer relation skills at the store. We are very fortunate and lucky to have our staff. Part of the reason is management( I'm not involved :-) )The staff though is happy and proud. They don’t just serve food. They serve FRESH, HEALTHY FOOD!

Jonnie... Send her on down and see Khun Nui. Thanks.

Several ways you can get around the 49% ownership laws...

1. Alien Business Permit:Activities outside of the apparent scope of the Alien Business Law include many manufacturing industries, leasing and lending activities. With this permit you can own 100% of the shares.

2. BOI:The criteria for evaluating projects is the same for everyone. The minimum investment required for BOI privileges is one million baht (US$25,000), excluding the cost of land and working capital.

3. Amity treaty for Americans: Americans can own 100% of the shares. This treaty may expire Dec 31st 2004. Current companies are expected to be "grandfathered" in  

4, Holding and operating companies: The Thai Juridical Council  gave an opinion concerning how to determine whether or not a Thai registered company is an alien company within the meaning of the earlier Alien Business Law.  

Before the ruling, any company which was Thai, as defined, counted as Thai if it was a shareholders in another Thai company. Thus a company registered in Thailand (the "Operating Company") would be considered Thai if 49% of its shares were directly held by aliens and the other 51% were held by another company (the "Holding Company") which itself was 51% Thai and 49% Alien. It was thus possible for foreigners using a two‑tier company structure to directly or indirectly own approximately 74% of the capital of the Operating Company and for the Operating Company to be considered Thai and thus permitted to conduct businesses prohibited to aliens.  

If this ruling had been implemented the capital of the two companies would have been considered together and in the above case, the Operating Company would have been considered alien. The Ministry of Commerce after much consideration has decided not to implement the ruling.  

Work Permit:

You still must have  2 million registered capital for the work permit and hire 4 Thais. The Thais though can even be a maid working part time. On the second or third work permit, under the CURRENT laws, you do not need an additional 2 million baht capital per work permit. You can simply have a letter from the Managing Director that the salary will be 30,000 baht per year( if the employee is not married) and will pay tax of 18,000 Baht per year.

The restriction of 33% was only for that particular type of business under the Alien Business Law. Its usally 49% otherwise.

www.sunbeltasia.com is our site to find out more..

In some instances yes but not Silom or Sukhumvit. They pay the sidewalk police. Nothing goes to the store owner.

The food I agree is quite tasty.

As I said " understand many Hawkers are out of work during APEC"

I also said "If they could just find a place for the Hawkers... "

Once again, I understand that the Hawkers need work. I also can see the streets are looking great. Do I have a solution, to have both? No.. I wish I did. :-(

Please though take a good look at the streets in the next couple days. They'll never be like this again. The Hawkers that pay 20,000 per month in rent and no taxes or Vat is coming back to compete against the store owners paying 300,000 Baht in rent, tax and Vat and be right on top of their window . Who is taking advantage of the system?

Does the country need Hawkers… Yes because otherwise they would not have a job. That’s the crux of the matter.

We do though pay more than McDonalds at 23 baht per hour or Starbucks at 28 Baht. We pay 6,000- 6,500 for Sandwich Artists and 10,000 Baht for Assistant Managers.  Unfortunately as an American you must be paid 40,000 per month for a work permit… too rich for the business model. Sorry.

With all due respect, most restaurant owners have to be at the location full time. They need to make an effort to prevent stealing. Most owners will NOT use software but their eyes. Some eyes are better than others and know how to fire up the troops. Its true with a professional management team, you'll never equal the same productivity as SOME owners. It’s their pride and joy; they will work free if they have to.

A pro Management team has the knowledge however of looking at the financials to monitor food costs, employee productivity, etc, etc. They will do spot checks, professional marketing. It’s a system!

Which method works better?

The ideal situation is an outgoing personality old timer that is sharp as a fax with numbers. He or she is always learning and treats the restaurant as a business. He has his system and enjoys and loves the business. The employees feed off this owner and emulate him or her.

The second best situation is a professional management team. It’s better than easily 60% of restaurant owners who don’t work the hours; they make the restaurant their own kitchen for guests and treat it like a hobby. The pro mgmt team will outperform in many many cases this type of owner. It's not even close.

By the way, cheating is much much less in Thailand than many other countries. HOWEVER once it starts...look out as it will spread like wildfire. Rather than tell, the other employees will" Monkey see..monkey do" Inventory control and spot checks are a must.

we use a team approach rather than one manager assign to the restaurant. Keeps our team on its toes as well!

I understand many Hawkers are out of work during APEC but  these sidewalks of Bangkok now look like a city in France or the USA. I dare say they look terrific. The consensus of people in the streets are "WOW" People walking are very much impressed how great Bangkok looks. I'm hearing positive and I do mean very positive views.

If they could just find a place for the Hawkers... but it will never happen. Come Wednesday morning, the city will be back to its old self. Sidewalks crowded with no room to walk.

Its still 40K max for each company. It will raise soon as you note for the Japanese and Americans to 60K.

If you are volunteer, then of course the second requirement of 40 or 60K would not apply.

Stuccy,

Hi

If you are an Thai national...please go to the Nana store on Sukhumvit next to the Landmark and ask for Khun Naravadee. She'll be happy to talk with you. That store is hiring, as we are serving over 400 customers a day.  

Regards,

Greg

You have to turn the old work permit in, if you are no longer working for that company. Simply apply at the new company.

You can however work for two companies at the same time with one work permit. IT MUST be approved by the Thai authorities and noted in your work permit book.

The reason that the USA has Amity privilege is because of the Viet Nam war. Thailand was scared to death of communism at that time. We give Thais the same rights to own a business in the USA under the E-2 investor visa. The third largest Thai population in the world is in Los Angeles, California.

The Treaty is expected to expire December 31st 2004. The consensus of experts is current Americans that are registered under the Amity treaty will be grandfathered in. We are doing a record number of Amity applications in our office and expect this tread to continue till late next year.

Jai Dee,

Thanks Grandiose for the reference. Our company does do management for individuals not in the country.  Our only requirement is your firm has a POS system and your accountant pays the appropriate taxes on earnings.  

Regards,

Greg Lange

Managing Director

Sunbelt Asia

www.sunbeltasia.com

02-642-0213-8

At Subway/ Coffee World directly on Sukhumvit between Landmark Hotel and Soi 4.  They are open 24 hours and the baseball and football games are on TV. If not just ask for the remote control at the Coffee World counter and you can put it on yourself. :-)

I agree also George, Thaiprivateeye.com knows his business.

They did an article on us " Guest Opinion Q & A with a business broker", in this months issue.  Wish my answers were as intelligent as the questions :-)

Seriously, its a good magazine. I like their article on the profit going to be made during APEC for Thailand. If they correct, no wonder Thaksin states 10% growth next year.

They are simply doing Selling and Marketing.

More like marketing.  We take pride with our image. We have been scoring high with our brand. Tuesday in fact I was at a news conference with 32 news media interviewing us and how we are taking a very popular restaurant in Bangkok international. Marketing is our strong point.

As for selling, LOL, the truth be told, we are the absolute worse. After we meet you and you are given a number of businesses that struck your eye. We do ZERO follow up. 1. We feel it’s your decision to contact us. If you need some additional information, we are here to help. We only work with people that ask for additional listings, obtain info for their due diligence team.  2. As per Thai SEC laws, we give zero advice or our opinion on any business. One selling a business if your rate salesmanship, give us a -1!

What we do do is market businesses in a confidential matter in many newspapers, websites such as www.sunbeltasia.com that a business is for sale. This is at our cost. The buyer likewise is never charged a fee.

I can’t think of one good reason to buy a bankrupt shell, pretty naive to say the least. You would have to be on planet Pluto.

As for legal, our professional fee is 7,200 Baht to form a company. We do it is to help our clients. If it’s hard or not, I don’t have a clue. We have registered lawyers that do it all.

Far be it from me to disagree with you, but 3 weeks ago we set up an amity company with 2million baht REGISTERED capital, not paid up capital. 1 Yank 99% a second one 1 %. The company is operational as I read the crap you call informed and continue, daily, to set up 7 shareholder, 1 (Foreign) director Thai Limited Liability Companies.

You can set it up now for 500,000 Baht as well for Amity. Once again, no requirement of 3 million. If you need a work permit however, then NOW you need 2 million registered capital.  

Thanks Steve, Funny thing is... the US Commercial Service  is who told us it had to be 4 Americans. They stated it was 51% of the shares, majority # of shareholders and majority of Directors. We have filed many Amity applications and always the same advice from several different people at that office! I've in fact filed two Amity treatys even for myself and told the above. TIT

Another reason Thailand really wants an FTA so they can send their kiddies to school and work in the US.  See quote from WSJ:

They are doing that now under the E-2 and L-1 Visa. The third largest city for Thais is Los Angeles, California. Over 100,000 Thais live in LA. Far many Thais were granted E-2 status than Americans applied with the Amity treaty.

You can set up an Amity company with one American holding 19,994 shares, and six Thais holding one share each.  All that matters is American majority ownership.

Sorry Steve you are wrong on this one... you need minimum 4 Americans for the Amity and % of stock with a limited company. The majority or same number of Directors being American as well.

You may be interested to know that it was 3 million Baht paid up capital requirement for Amity. Most people are not aware; they don't have that requirement now. Of course the work permit of 2 million applies, if you will work in the business.

Are there many million bahter's with BOI privileges Greg ?

Yes..

http://www.boi.go.th/cgi-bin/cdb.pl?language=english

Were talking generalities here. It’s like asking is the sky blue? Or is it the ocean calm? Some days the sky and ocean are. Some businesses do well in Thailand and some don’t. Just like in any part of the world. However in Thailand, be prepared in certain businesses to make less than you could in other parts of the world. For instance, with SOME concepts you will make 50% less net profit here but that 50% in your pocket will go much father than in the Western world. Some concepts you will even make more and some even lose money. But nothing is of course just picking the money off the street. I know I’m not helping you much with this answer but your question is similar to “Are men good? “

Business is a case by case situation. Some Internet Café do well here, even charging 3 Baht a minute but a block away, they need to charge just 1 baht a minute. So many variables of location, brand name, customer loyalty, staff. Your best scenario is to look at MANY businesses, do your due diligence and find the best one that is making money and fits your fiancé and your personality.  We have a Sunbelt office in Pattaya and Charles the office manager their, can direct you at a number of businesses you and your wife can own.

As for Bars, lots of competition in Pattaya.  Moderate payouts do happen. The overall comments I’ve heard is that the people getting envelopes are happy and only come around once a month. Requests for increases are rare, not even once a year. The funniest thing is you hear this many times” The police here are good, their not greedy.” And more importantly according to a number of bar owners, it’s cheaper than if they had to hire fulltime security.

Depends on many factors?

How much is the land? Where is it located? ( General area)

How old are you?

What are my requirements to do so?

 The best way is with Amity as Johnny B suggested.

Can I own a business outright, or must I own it in tandem with my future wife?

Own it out right

Buy before or after marriage?

Up to you. does not matter.

Work permit requirements?

You need 2 million baht paid up capital for you.

Visa requirements?

You can get a "B" or "O" visa

tax issues.

30% flat tax

Web sites

Many freelancers here.. 50,000 Baht or lower should get you a decent site.

, consular addresses

Embassy is located on Wireless

, war stories,

Acquiring an existing business is much better than starting one.

etc. Key charges, rents,

Just depends on the location. On existing businesses, most do not have key money to the Land Lord.

who to bribe, how much.

You will be surprised that for most foreigners, that amount is low. The biggest Go Go Bars pay just 10,000 Baht or lower. The money Chuwit was tossing around is nothing I've heard of from foreigners. Most smart businessmen say to pay just the top guy.

 

Also, will ownership of a massage shop derail any plans we have for her to obtain a visa and eventually relocate to the US with me?  

If she is the Director of the Limited company, odds are she'll be ok. I would think the Internet Cafe makes more sense, if you wanted to be 100% sure.

Is it possible to own your own small business, which would get you a work permit as a general manager or whatever, AND, give something back as a teacher, and thus qualify, and need, a work permit for that.

Not sure if I understand you but will break it down...

Is it possible to own your own small business, which would get you a work permit as a general manager

Yes

AND, give something back as a teacher, and thus qualify, and need, a work permit for that.

You lost me here... please clarify. Thank You

Hi Sting,

I know of a number of companies which were registered for as low as one million Baht capital and obtained BOI status. One is in the movie business and another in software.