Starting a business in Thailand

[racinkc1]

Hypothetically, if I invested in a small restaurant/business with my Thai friend, and it started to have success, what immediate legal challenges would I be facing?

[VinnieK]

Immediate challenge would be a competitor opening right  next door..maybe more than one.????????

[Sparktrader]

Your friend starts taking money

[VinnieK]

If the 'friend' is a romantic interest of yours, if and when the relationdhip goes south, kiss the biz goodbye too.

There are also the legal challenges you mentioned (immigration related) but you can figure out those easily.

[Liverpool Lou]

1 hour ago, racinkc1 said:

Hypothetically, if I invested in a small restaurant/business with my Thai friend, and it started to have success, what immediate legal challenges would I be facing?

It depends on what you are doing wrong.   Why should you have any "legal challenges"?

[Liverpool Lou]

3 minutes ago, VinnieK said:

There are also the legal challenges you mentioned (immigration related)

Such as?

[VinnieK]

2 minutes ago, Liverpool Lou said:

Such as?

If he is here on a Mickey mouse visa he can't work....and virtually impossible to get a work permit or permitted by the authorities to open/operate a small biz.

Issue has been done to death.

Someone else can chime in with some more details.

Thailand is NOT a place for immigrants.

Hands firmly tied behind our backs here.

 

 

[Dan O]

Consult a lawyer and set up an LLC first and then go from there when setting up the actual business. Small pain in the butt but gives you some protection and lays out all the legal requirements 

[FritsSikkink]

55 minutes ago, VinnieK said:

If he is here on a Mickey mouse visa he can't work....and virtually impossible to get a work permit or permitted by the authorities to open/operate a small biz.

Issue has been done to death.

Someone else can chime in with some more details.

Thailand is NOT a place for immigrants.

Hands firmly tied behind our backs here.

 

 

Nonsense, know enough very successful business owners

[fdsa]

1 hour ago, VinnieK said:

Immediate challenge would be a competitor opening right  next door..maybe more than one.????????

the topic starter asked about _legal_ challenges, but I do agree with your post ???? a restaurant business has like 1% chance of becoming successful.

[Lacessit]

AFAIK one of the first legal challenges is knowing what kind of bribe to keep operating the local plod will be expecting when they stop by.

[scorecard]

Perhaps before you start the business you should do some research as to what legal/local regulations responsibilities / minefields are involved which you need to get right before you open.

[FritsSikkink]

12 minutes ago, Lacessit said:

AFAIK one of the first legal challenges is knowing what kind of bribe to keep operating the local plod will be expecting when they stop by.

If you have a legal business, you pay nothing. People on this forum can only think of 2 sort of businesses, a bar or a restaurant. Most of them know nothing about other businesses.

[scorecard]

21 minutes ago, fdsa said:

the topic starter asked about _legal_ challenges, but I do agree with your post ???? a restaurant business has like 1% chance of becoming successful.

UK friend (well experienced in the business in the UK) opened a restaurant in Pattaya. What he hadn't anticipated was the high level of skimming of receipts, theft of food/raw materials and theft of finished meals not ordered but prepared and put aside (hidden) for staff to take home, not paid for.

 

Also theft of furniture and equipment. Tally up the bills presented to customer compared to cash in hand every shift/day. Always up to 50% short.

 

He tried to implement a rule that he alone checked bills before bill goes to customer, he alone takes the money, money locked in a drawer, he alone has keys. Staff rebelled with '...you not nice you don't trust your staff, don't want to work in place like this, no fun'.

 

He discovered that he couldn't take a day off/go home early, if he did theft increased substantially. Also discovered that asking questions was a waste of time, no answers whatever.

[ezzra]

Usually Thai partners are not to be trusted, as in their mind, stealing and cheating from a farang is ok, even if he/she are good friends, making you being on guard all the time and checking the till and stocks..

[LukKrueng]

3 hours ago, Lacessit said:

AFAIK one of the first legal challenges is knowing what kind of bribe to keep operating the local plod will be expecting when they stop by.

How many businesses have you opened\ran?

[Lacessit]

9 minutes ago, LukKrueng said:

How many businesses have you opened\ran?

None. I do know about half a dozen people with businesses, and I've seen the cops turn up on certain days openly accepting money. 1000 baht seems to be the going rate, I don't know what that buys.

Edited October 21, 2022 by Lacessit

[3NUMBAS]

drastic undercutting to drive you out of business

[Liverpool Lou]

20 hours ago, VinnieK said:

virtually impossible to get a work permit or permitted by the authorities to open/operate a small biz.

Nonsense.

It is not "virtually impossible for foreigners to get work permits". 

Opening a business does not require a WP unless that person is actually going to be physically working in that business.

[2baht]

Don't invest any more than you can afford to lose!

 

 

Edited October 22, 2022 by 2baht

[CharlieH]

Hperthetically, you first need to ensure you do all your "due dilligence". If this is a romantic relationship, you will probably be throwing your money down the drain.

In any event, get a lawyer and stitch it up tight! or be prepared to just write it off at some point.

 

Golden rule here: NEVER invest or spend more than you are happy to walk away from.

[BritManToo]

20 hours ago, FritsSikkink said:

If you have a legal business, you pay nothing. People on this forum can only think of 2 sort of businesses, a bar or a restaurant. Most of them know nothing about other businesses.

You forgot 'coffee shop'.

[VinnieK]

2 hours ago, Liverpool Lou said:

Nonsense.

It is not "virtually impossible for foreigners to get work permits". 

Opening a business does not require a WP unless that person is actually going to be physically working in that business.

Ok...you assume the op will be a 'silent partner' in the biz which will be registered in the Thais name.

..and he will be putting zero work in it .

Yes...in this setup it can be done.

Good luck to him...he will need it.

 

Btw...where has he gone? ????

[racinkc1]

On 10/21/2022 at 12:12 PM, Dan O said:

Consult a lawyer and set up an LLC first and then go from there when setting up the actual business. Small pain in the butt but gives you some protection and lays out all the legal requirements 

What type of lawyer?

[racinkc1]

On 10/21/2022 at 12:59 PM, FritsSikkink said:

Nonsense, know enough very successful business owners

I personally know a few myself.... I mean, how else did I get the crazy idea of going into business here....?

 

Edited October 23, 2022 by racinkc1
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[racinkc1]

On 10/22/2022 at 9:03 AM, Liverpool Lou said:

Nonsense.

It is not "virtually impossible for foreigners to get work permits". 

Opening a business does not require a WP unless that person is actually going to be physically working in that business.

Do you think Siam Legal might be able to answer some questions?

[Liverpool Lou]

6 minutes ago, racinkc1 said:

On 10/22/2022 at 9:03 AM, Liverpool Lou said:

Nonsense.

It is not "virtually impossible for foreigners to get work permits". 

Opening a business does not require a WP unless that person is actually going to be physically working in that business.

Expand  

Do you think Siam Legal might be able to answer some questions?

I've no experience personally with them so I don't know what they could do, bit I'd be surprised if they couldn't, though.   Why not ask them?

[Walker88]

If you are an owner or director of a Thai business, you do need a work permit, as well as a Non-B Business Visa.

 

If you are American, you can own 100% of the company, owing to the Treaty of Amity. If non-American, 49% is your limit.

 

You need trustworthy Thai partners and a good point-of-sales system. You need CCTV cameras for obvious reasons, including insurance.

 

You need to be on top of all supplier issues, and link orders with incoming supplies.

 

There are many licenses required for any business, so look it up depending on what sort of business you intend to run. You say 'restaurant', so that would mean alcohol, food and music license. There is also a sign tax, but if the sign contains any Thai characters, the tax is less. Good idea to get SHA+ approval, too, as you never know when the next epidemic will arrive.

 

For every non-Thai employed or who is a director, you must have at least 4 Thai employees. There is some slack granted if any employee is from an ASEAN country.

 

You need to register at DBD, provide a shareholder list, at least pretend to hold shareholder meetings, register for VAT payments, make sure your staff is on Social Security, and keep every possible receipt and record (giving copies to your accountant). To open a bank account, you will need lots of documents. Best to just ask the bank. Having more than one bank is also wise.

 

There is lots of bureaucracy, but not many legal issues if you follow the rules. Maybe you will get shaken down from time to time, but a payment usually suffices.

Edited October 23, 2022 by Walker88

[2baht]

1 hour ago, racinkc1 said:

What type of lawyer?

Try and find an honest one!

[racinkc1]

9 hours ago, Liverpool Lou said:

I've no experience personally with them so I don't know what they could do, bit I'd be surprised if they couldn't, though.   Why not ask them?

 

8 hours ago, Walker88 said:

If you are an owner or director of a Thai business, you do need a work permit, as well as a Non-B Business Visa.

 

If you are American, you can own 100% of the company, owing to the Treaty of Amity. If non-American, 49% is your limit.

 

You need trustworthy Thai partners and a good point-of-sales system. You need CCTV cameras for obvious reasons, including insurance.

 

You need to be on top of all supplier issues, and link orders with incoming supplies.

 

There are many licenses required for any business, so look it up depending on what sort of business you intend to run. You say 'restaurant', so that would mean alcohol, food and music license. There is also a sign tax, but if the sign contains any Thai characters, the tax is less. Good idea to get SHA+ approval, too, as you never know when the next epidemic will arrive.

 

For every non-Thai employed or who is a director, you must have at least 4 Thai employees. There is some slack granted if any employee is from an ASEAN country.

 

You need to register at DBD, provide a shareholder list, at least pretend to hold shareholder meetings, register for VAT payments, make sure your staff is on Social Security, and keep every possible receipt and record (giving copies to your accountant). To open a bank account, you will need lots of documents. Best to just ask the bank. Having more than one bank is also wise.

 

There is lots of bureaucracy, but not many legal issues if you follow the rules. Maybe you will get shaken down from time to time, but a payment usually suffices.

thanks for the info. These boards are becoming worthless with so much negativity. I realize there is a tax if your sign has english, as me and my partner have discussed this. There is tons of bureaucracy anywhere you go in the world. I still stand a better chance here where the economy is good and I can leverage my currency. I just contacted a law firm that specializes in foreign investment. Thanks again.