Single male buying a business in Thailand

[isaan2003]

There is a lot of info here on visas, rules and regualtions, immigration demands and "expectancies" ( depending on how much room theer is under the table )

and the like and a great deal is directed at farangs who are either married or getting nmarried to a Thai girl.

But let's say a British guy, 55-60, is interested in aquiring a small business

with an investment of around 500000 to 700000 baht. First of all he will

only be in Thailand on the 30 day tourist visa so what does he need to do

in order the get that extended? I assume that he is going to need to show

proof of something ( the proposed business ) but on the other hand he is

not going to invest anything just on the strength of a 30 day toursit visa.

So can anyone say just how they would go about it - assuming that the

visa issue was the key to closing the deal on the business.

Thanks

[LivinLOS]

As he is over 50 he can get a retirement visa if he can show 800k in the bank or income of (I think) 65k per month, or a combination of the two.

It is my understanding you can work and gain a work permit on an non imm-o visa but I am not really up on that side of it.

[george]

let's say a British guy, 55-60, is interested in aquiring a small business with an investment of around 500000 to 700000 baht.

What business are sold for 500-700K THB? Can you get a profit of 60-100K per month in order to cover the minimum salary, tax and other company costs?

I would love to buy a business that generate a profit of 100K per month.

Where are you going to locate?

[dr_Pat_Pong]

As he is over 50 he can get a retirement visa if he can show 800k in the bank or income of (I think) 65k per month, or a combination of the two.

It is my understanding you can work and gain a work permit on an non imm-o visa but I am not really up on that side of it.

A person married to a Thai and holding a Non-Immigrant O class visa, can get a work permit. A retiree cannot work, nor can someone on a 30 day entry permit.

[lopburi3]

But let's say a British guy, 55-60, is interested in aquiring a small business

with an investment of around 500000 to 700000 baht. First of all he will

only be in Thailand on the 30 day tourist visa so what does he need to do

in order the get that extended? I assume that he is going to need to show

proof of something ( the proposed business ) but on the other hand he is

not going to invest anything just on the strength of a 30 day toursit visa.

Perhaps I misunderstand, and apologize if that is the case. But it appears you want to come here without even paying for a tourist visa, and then use your offer of a 500k investment to obtain a long stay visa. IMHO this will not impress anyone much!

Did you drop a zero (twice)?

The long stay/retirement visa rules are quite clear if you want a visa.

[dr_Pat_Pong]

But let's say a British guy, 55-60, is interested in aquiring a small business

with an investment of around 500000 to 700000 baht. First of all he will

only be in Thailand on the 30 day tourist visa so what does he need to do

in order the get that extended? I assume that he is going to need to show

proof of something ( the proposed business ) but on the other hand he is

not going to invest anything just on the strength of a 30 day toursit visa.

Perhaps I misunderstand, and apologize if that is the case. But it appears you want to come here without even paying for a tourist visa, and then use your offer of a 500k investment to obtain a long stay visa. IMHO this will not impress anyone much!

Did you drop a zero (twice)?

The long stay/retirement visa rules are quite clear if you want a visa.

He is relying on an under the table payment to someone to smooth over regulatory nonsense. Hope springs eternal Lop.

[isaan2003]

Actually there is no need to pay for a tourist visa as it is stamped

on arrival at the airport. At least it was the previous times. As for

monthly incomes ( pension etc ) it is well in access of 50000K but

destined for other use and not for Thailand or Thai banks.

Lets say that showing 80k in the bank can also be overcome but

the bulk of that is meant for aquiring the said business - which it

may be said is small business that can generate income of anywhere

between 50-100k a month with overheads being somewhere in the

region of 20-25k.

Once you can show 80k in the bank that is way it has to be always

shown - or at least when renewing the retirement visa? Or once

shown can be utilized as you see fit?

Seems as though opening a business and working is not "retired"

and just relying on an incoming monthly pension.

So as for the stiplulations of 80k in the bank or a monthly income

of a certain amount, correct me if I am wrong but it looks as though

the 80k can be used as collateral for the initial visa with the monthly

business income used thereafter.

[lopburi3]

So as for the stiplulations of 80k in the bank or a monthly income

of a certain amount, correct me if I am wrong but it looks as though

the 80k can be used as collateral for the initial visa with the monthly

business income used thereafter.

You are wrong. On just about everything.

Immigration at Thailand stamps you a 30 day stay if you are from one of the chosen countries. This is not a visa and offers no chance of a change. If you want to change get a visa first.

Long stay visa requires 800k in bank. 65,000 is required each month if pension is used. Pay attention to this requirement "Not being allowed to work in Thailand." athttp://www.mfa.go.th/web/12.php

Money must be in bank every time you extend visa (yearly) and use/non-use must be explainable. If this method is used (bank deposit) it is expected that funds will be used and replaced on a regular basis (not taken out day after extension issued and returned day before next extension is due).

[dr_Pat_Pong]

Back to the drawing board for Mr Isaan, and if he does decide to proceed, he gets another out of country experience so as to obtain the appropriate visa. He might have to talk to Sunbelt or Indo about a business option, but I suspect he won't want to pay the costs of setting up business

[isaan2003]

Well first of all the business is already set up and running so as far as Sunbelt goes that is a little superflous. All the business is looking for is a new owner - no more and no less - meaning that the present owner wants to sell.

After having gone through the MOF website it would seem that the ideal visa

would be a "B" non immigramt visa. There is lots of information regarding requirements for people who want to work at already established companies

or to conduct business with such companies, but really nothing regarding anyone who actually wants to buy a business. Maybe I negltected the fine print so to speak but I didn't really come across anything relating to foreigners who are

requesting to aquire a business.

According to the paragraph below , persons entering the country on a 30 days

stay (countries exempt from tourist visa) can for business reasons apply for a change - although that last sentence again brings me back to "how much space under the table" Admitadlly it does mean "renewal runs" etc every 3 months

but it does seem a better option than the 800k/65k month choice.

3.3 Foreigners entering the Kingdom under a Transit Visa (“TS”) or Tourist Visa (“TR”) wishing to engage in business activities may apply for a change to Non-Immigrant Visa at the Immigration Bureau Office located at Soi Suan Plu, off South Sathorn Road, Bangkok 10120, Tel (662) 2873101-10 or at website http://www.police.go.th/thaiimb/frconten. htm. The extension of stay as well as the change of certain type of visa is at the discretion of the Immigration officer.

[lopburi3]

According to the paragraph below , persons entering the country on a 30 days

stay (countries exempt from tourist visa) can for business reasons apply for a change

You need a visa. What you receive on a 30 day stay is a 30 day stay. It is not a visa in any way, shape or form.

[Sunbelt Asia]

Isaan2003,

You’ll find Sunbelt’s business is business. You have as you mention already fund a business but on this site you’ll find will have many articles on buying a business as well as many different types of listings. www.sunbeltasia.com

Just so you know, most businesses that are available for one million baht have a cash flow (EBITDA) of 2.5 times. This translates to a 40% return so a 700,000 business will on average have an EBITDA of 280,000 Baht for the year. Of course nothing is certain. You can do much better or worse when you manage the business. But most businesses can be acquired in the States or Asia at the multiple of 2.5 times. In Europe this multiple is around 5 to 6 times as many businesses are established 20+ years, this translates to around a 20% ROI.

In Thailand, we do find some businesses being offered under the 2.5 times earnings evaluation and even lower than 1 times in some cases. If the seller is very motivated because of relocation, partnership dispute or health, the multiple will drop for a fast sale. Of course this transfer will need to be under strict due diligence to make sure the business really has these type of earnings.Saying that, a business that is making over 100K net per month and is available for 700K would be very rare indeed.

I like to point out as well, most businesses are acquired by an asset purchase agreement rather than a share purchase agreement to protect the buyer for any unpaid liabilities of taxes, etc. A brand new lease is entered into with the Landlord. The other major benefit of an asset purchase is that depreciation of the purchase price can be deducted from profits unlike a share purchase. Hence a new corporation is formed and the assets of the trade name, good will, furniture fixtures, equipment and inventory are put inside it.

www.sunbeltasia.com

[teelac888]

firstly, you need to get expert advice from a real lawyer. best one i know in thailand is boonsom kongsri - his office is at 66 soi asoke in bangkok. he started with a desk in a travel agency on soi nana 15 years ago and now has a large company. very honest with an excellent reputation.

owning a business is one thing, your role in the business another, and your residence status in thailand yet another.

anybody on any visa can own a business. a visitor can sit in that business and watch what goes on every day as long as they are not actually working.

anybody on any visa can lease anything.

depending on the business you will need thai people to obtain the various operational licenses needed to operate the business. you will need thai people to fill all the roles operationally as well.

you could form a joint venture and obtain a work permit that way and actually work in your business. takes a while and costs a lot of money. probably not worth it.

i have been out of thailand almost 9 years now and the immigration laws have changed a lot so i have no advice there.

final word: get good advice from boonsom or another reputable lawyer with a LONG list of farang references you can check. as you can see from this chain all the armchair quarterbacks muddle everything up and mix up the 3 different subjects listed at the top.

good luck

[Udox]

If you have a trusted Thai aquaintance, why not get them to look after the business, even if you pay them it will be very little and then you will not have to worry about what kind of visa you should/should not have, or worry about work permits and forming a company with all the regulations that entails.

You would still have your business and could have your say in how it is run but without all the beaurocratic hassles.

Of course you would have to trust your friend implicitly

[Incognito]

I am from another country and I want to find this lawer,Boonsom Kongsri . Do you have any web or mail adress? Thank you. Please write to me at [email protected]