Visa for Buying into hostel and Legalities for it

[Morgs]

Hi,

 

I have been to Thailand twice within the past year and have gained a brilliant friendship with a Thai local that owns the hostel I have stayed at both times. I am looking to buy into the hostel so we would be partners but I need some information on the legal side like what visas, how easy it is to get it and any other legal advice would be appreciated.

 

obviously the borders to get in are closed at the minute but once they allows uk citizens back in I am looking to do it immediately.

 

thanks

morgs

[colinneil]

Morgs, my advice, never get into a business partnership here.

It has a 99% chance of failure.

Do you speak fluent Thai? Probably not, so dont do it.

[ezzra]

First of all not the right time to get into any hospitality or entertainment business owing to the covid no tourists situation, second, partnership can be formed as long as it's done with the help of a sound legal advice and all the t's and i's have been dotted properly leaving nothing for chance or an opportunity to be take for a ride by a thai partners... 

[jackdd]

You don't need any special visa to hand over your money.

[madmen]

1 hour ago, ezzra said:

First of all not the right time to get into any hospitality or entertainment business owing to the covid no tourists situation, second, partnership can be formed as long as it's done with the help of a sound legal advice and all the t's and i's have been dotted properly leaving nothing for chance or an opportunity to be take for a ride by a thai partners... 

 Not true. Some great opportunities ATM for long term. However only for those with hotel experience 

 

[Peterw42]

OP, maybe some more information if you want some realistic advice.

Are you buying into the "business" that runs the hostel, probably in rented premises ? Are you buying into the premises the business operates in ? Or both ?

Is there an existing company structure for the business or just a cash business?

Your age ? 

You can own 49% of a Thai company, dependant on a few conditions that company can get you a Business visa etc.

 

[ubonjoe]

Several off topic posts and replies to them have been removed.

As said you do not any special visa or entry to do a investment. Only if involved in the management and etc of it would you need a work permit and etc.

[Wongkitlo]

Is the Warren Buffett rule. When everything is bad is a good time to buy as long as you have the money to wait out the bad times. I would actually wait a bit longer till things get worse. There are legal companies that would set up a company for you and arrange a work permit. I would go and see one of them before anything. 

[NoshowJones]

7 hours ago, madmen said:

 Not true. Some great opportunities ATM for long term. However only for those with hotel experience 

 

What have ATMs got to do with this topic?

[timendres]

1 minute ago, possum1931 said:

What have ATMs got to do with this topic?

ATM -- at the moment

[NoshowJones]

1 minute ago, timendres said:

ATM -- at the moment

There are more and more posters here on Thaivisa who think they are sending text messages. 

[Morgs]

7 hours ago, Wongkitlo said:

Is the Warren Buffett rule. When everything is bad is a good time to buy as long as you have the money to wait out the bad times. I would actually wait a bit longer till things get worse. There are legal companies that would set up a company for you and arrange a work permit. I would go and see one of them before anything. 

Finally a helpful answer, obviously getting into the country is a no go at the moment so I’m thinking around November-December.

 

 

[khunPer]

13 hours ago, Morgs said:

I am looking to buy into the hostel so we would be partners but I need some information on the legal side like what visas, how easy it is to get it and any other legal advice would be appreciated.

Apart from the Covid-19 restrictions, you don't need any visa to buy into a Thai business, but you cannot work in Thai business without a work permit.

 

You might not be able to be "partner", but you can be a shareholder in a Thai company limited. Foreign shareholders are restricted to a maximum holding of 49 percent of the shares, and there shall be a total of three shareholders in a company limited.

 

To obtain a work permit for a foreigner, the registered shareholder capital shall be of not less than 2 million baht, and there shall be not less than 4 Thai employees.

 

With an introduction letter from the company for work, you can obtain a non-immigrant B visa, and you can get annual extension of stay, each for one year at the time based on work permit. Foreigners are limited in what they are allowed to work as, but managers and directors are for example allowed. To obtain an extension of stay based on work you need to show proof of a monthly salary around 50,000 baht, the salary variate depending of country of origination.

 

To be shareholder and board member – i.e. director, but not active managing – you don't need a work permit, but you will still need a kind of visa and extensions of stay, if you wish to stay in the country for a longer period than is allowed for tourists.

????

[ericthai]

2 hours ago, Morgs said:

Finally a helpful answer, obviously getting into the country is a no go at the moment so I’m thinking around November-December.

 

 

looks like you only want replies that you want to hear!  You really need to check into things, Thailand is not an easy place to own a business. Maximum ownership you as a foreigner can have is 49%. 

 

Scams are abundant in Thailand.  Over the years I've seen quite a few.  I know a guy that invested in a bar, thought he was part owner, found out all the papers were fake and he didn't own anything, then he found out 4 other guys that all thought they invested in the same bar. Nothing happened to the owner, law suites were filed, delays in the courts, 7 years later and still waiting to go to court. 

 

You've been to Thailand 2 times and people that have lived here for decades are telling you to be careful. 

Even though you like the owner and think he's your friend, dont trust him or listen to him if

he says this is ok, or that is ok. Get a lawyer involved, learn some thai and know the truth before you do anything.

 

Does the company have any debts? Are they just renting or do they own the buildings. Are they paying taxes and all is above board? Most thai's dont pay taxes, so if you get involved will you be able to make sure taxes are being paid?  

 

I'm not saying dont do it, but saying be careful know what is going on, dont rely on what people are translating for you.  When you first come to Thailand,  what you think you know and what is real are two different things. 

Wish you luck!

[Maestro]

6 hours ago, ericthai said:

Does the company have any debts?

 

I believe the OP has made no mention of a company. It may currently well be a sole proprietorship or a partnership of two or more partners.

 

So far, the OP has also not mentioned if he intends to be a silent partner, continuing to live – and perhaps work – outside Thailand, or an active partner, living in Thailand and being involved in running the business. 

[MRToMRT]

Whichever way you will need a lawyer. An independent one of your choosing to not only perform the due diligence but also the purchase process and any operating contract. Be aware from the outset that the truth here in Thailand is maybe not of the same qualitative context as you may know it. I hope it goes well.