Buying A Business In Phuket

[lukez]

Hi All,

I need a bit of advice. I am planning of buying an existing internet cafe business with all the equipment, internet lines etc included. The premises are rented and 4 years lease to go.

Now my question is: What do i have to do in addition of singing all the contracts, transferring the phonelines, internet lines electricities etc?

I dont have a work permit, i will not physically work there at all (at least in the beginning), just "run the business" in the background. My girlfriend will be running everything with one other employee.

So any kind of advice is very much appreciated!

reg.

Lukez

[naka]

First thing you should do is to check around Phuket and see

if anyone else is currently offering a similar service !

Naka.

Edited July 20, 2007 by naka

[sgthai]

Hi All,

I need a bit of advice. I am planning of buying an existing internet cafe business with all the equipment, internet lines etc included. The premises are rented and 4 years lease to go.

Now my question is: What do i have to do in addition of singing all the contracts, transferring the phonelines, internet lines electricities etc?

I dont have a work permit, i will not physically work there at all (at least in the beginning), just "run the business" in the background. My girlfriend will be running everything with one other employee.

So any kind of advice is very much appreciated!

reg.

Lukez

To run a business you must register a company first.

Registered a company under sole proprietorship under your g/f's name.

[thaipulse]

First thing you should do is to check around Phuket and see

if anyone else is currently offering a similar service !

Naka.

Agreed - great suggestion!

I don't know that anybody really does "well" with that business, but sometimes the owner is just looking to maintain... something to do... Coffee is the greatest scam in the world with a nice markup. I'll bet if you just sold coffee you could make it profitable!

[lukez]

Thanks but...

If i buy the EXISTING company which is already registered, do i still have to register a new company?

Of course phuket is full of Cybercafes as every other tourist destination.. I am not planning for significant profits, more like to start doing business in Thailand, expanding whenever possible in the future.

Lukez

[H2oDunc]

Lukez, no offence mate but if the limit of your research into doing business in Thailand is posting here I doubt very much it will succeed. Firstly, yes there some very knowledgable people on TV but they still do not beat getting proffessional advice. second do some research into the business you are going to be buying. If your GF is going to be running it is she IT literate. If not you need to have a permit to work there. Lots to think about mate and dont forget the best bit of advice ever given. " dont invest any amount of money into Thailand you are not prepared to walk away from " Good luck in whatever you choose

[blizzard]

i think we offer valuable insight............lol.

buy a business for a thai girlfriend? silly.

buy business not expecting to make mut money? even sillier.

seems everyone worries about structure but not if business will make money.

i hope you paid nothing for your business as you just buying your gf a job.

[sgthai]

Thanks but...

If i buy the EXISTING company which is already registered, do i still have to register a new company?

Of course phuket is full of Cybercafes as every other tourist destination.. I am not planning for significant profits, more like to start doing business in Thailand, expanding whenever possible in the future.

Lukez

To conduct a business you'll need to register a company.

If you buy over an existing company you'll still need to register for a change of ownership.

Goodluck to your new venture.

Don't bother to much about other people's negative comment especially that blizzard guy.

He seems to think he knows all and goes around shooting down people who asked for advice

in many other threads too.

It's your money,your life and your decision,desire and love to do it for your g/f and I wonder why he feels the pain at all.

If he can't contribute he should have at least kept his loud mouth shut.

Empty vessel makes the most noise lol

[blizzard]

when someone cums up with a good idea ill say so.

its not so mut negativity that i preach but to buy a business for girlfriend not expecting to make money is just insane.

may be better than selling fake goods in patpong though.

itsjust the nature of this place, legit busnitman dont cum here for advice, they go and take care of buznit. only other kind of buznit man ask for guidance here............lol.

[sgthai]

when someone cums up with a good idea ill say so.

its not so mut negativity that i preach but to buy a business for girlfriend not expecting to make money is just insane.

may be better than selling fake goods in patpong though.

itsjust the nature of this place, legit busnitman dont cum here for advice, they go and take care of buznit. only other kind of buznit man ask for guidance here............lol.

So what constitute a good idea? Only the ones you deem so ? Who are you to judge what's good or bad? Are you saying you are an expert in everything?

Seeing and judging things from your perspective only goes to show how shallow a man you are.

Don't you know that there are people who buys house,land,boats,jewellery and business for their g/f???

Oh no..I forgot...you are so unexposed you won't know any man doing that lol

I have friends who bought or opened up an al fresco rstnt for their g/f or wife just to let them past their time or because it's their passion.It doesn't matter if business is profitable or not. But oh again...I forgot you won't know any lol

Boutique,gift shop,flowershop,bookshop etc.....I've seen many done it out of passion or for leisure to past time because their husband or b/f are busy during the day.

Insulting others of being silly just because you think it's wrong makes you a wiser man?

You are openly making a fool of yourself here lad.

May I suggest you'd be more humble next time.

If you can't help or contribute at least keep your mouth shut.

Edited July 21, 2007 by sgthai

[blizzard]

you a very very rude man sir!

buying stuuff for yr wife is one thing but buying for yr gf is just plain silly. ask barnum and bailey!

me and the other guy telling him to rethink his idea is helping sir.

Edited July 21, 2007 by blizzard

[SamuiRes]

Thanks but...

If i buy the EXISTING company which is already registered, do i still have to register a new company?

Of course phuket is full of Cybercafes as every other tourist destination.. I am not planning for significant profits, more like to start doing business in Thailand, expanding whenever possible in the future.

Lukez

If you buy an existing company you simply transfer the shares. BUT you also transfer all the liabilities of that company including any latent liabilities that may arise later.

If you are going to do this, start a clean company and buy the assets. Re -register the lease in the new name.

Or talk to a decent lawyer or accountant - you may be able to set up as a sole proprietor or partnership. I admit I am not 100% sure on that but worth enquiring about.

Work out the cash flow and see how much money you are going to have to put in on a monthly basis to keep it afloat!!

[blizzard]

mr samui

the guy will be laughing all the way to the bank with his deposits.......lol.

keepping a business afloat means a moneyloser. get that kind of negative thinking out of here. if you cant say something nice keep yr trap closed...............lol.

god i lub business!

[Monkeypants]

I agree with Blizzard here.

I f you want to make little money in the High season, loose a bit in the low season, hopefully for a lot of effort you may scrape a living, probably not though.

Have a rethink, thats my 2 pence worth.

[blizzard]

actual ex of how not to run internet cafe.

if customer wants to use certain machine let him use it. the one with clear lcd screen, . dont tell customer use another machine and then let next customer use machine 1st guy wanted to use.

i tried to give shop a 2nd chance

but i honestly think lady is stupid. i willing to spend 1 baht a minute for 3 hours every day in early morning but i gues not there.

i have to use nana internet cafes , but then i have to take taxi home..........i dont like taxis...............lol.

Edited July 21, 2007 by blizzard

[PCA]

actual ex of how not to run internet cafe.

if customer wants to use certain machine let him use it. the one with clear lcd screen, . dont tell customer use another machine and then let next customer use machine 1st guy wanted to use.

i tried to give shop a 2nd chance

but i honestly think lady is stupid. i willing to spend 1 baht a minute for 3 hours every day in early morning but i gues not there.

i have to use nana internet cafes , but then i have to take taxi home..........i dont like taxis...............lol.

Blizzard boy, what makes a smart business man having to sit 3hours per day in an internet cafe......lol.

[blizzard]

hey a thai could improve their standard of living many times over if they knew how to take advantge of the world of online gaming. and not the kind with dancing girls so popular with thai youth.

if one could teach the issarn villagers what to do one would see a lot of happy village people.

engleesh teechers could dubble their incum if they applied rolf slotbooms principles..............lol.

[blizzard]

ps .. hey siggy

are there really gfs or wives of succesful thai businessmen who operate business for fun or to kill time. whats the point of marrying a succesful man then?

i mean i can see a hi so woman getting up at 6am every morning to go to work and dealing with the stresse that go with it. putting on makeup, dealing with low paid unmotivated workers, having to make time for beauty treatment, etc.

in america you marry rich guy so you can get away from all the shhiitt regular people have to deal with.

you make no cents or i got a lot to learn about thailand.

[keestha]

Lukez,

Also if you are running the business in the background, maybe doing the bookkeeping at home, it is safer for you to get a work permit which allows you to work as the general manager of this shop. Having a work permit could also be useful for your visa situation. Does the deal come with an existing company limited? As stated by a poster above, be careful taking over an existing company limited, because it could have liabilities you are not aware of.

[lukez]

Lukez,

Also if you are running the business in the background, maybe doing the bookkeeping at home, it is safer for you to get a work permit which allows you to work as the general manager of this shop. Having a work permit could also be useful for your visa situation. Does the deal come with an existing company limited? As stated by a poster above, be careful taking over an existing company limited, because it could have liabilities you are not aware of.

the co is under sole proprietorship at the moment, i gotta find the right co structure for it. I am actually living in malaysia at the moment, 2 years more of my expat contract left, want to see if the business works out in thailand, and if so plan then to relocate and fully concentrate on the business.

No big money involved...

Edited July 22, 2007 by lukez

[keestha]

Possible options are:

1) Have your girlfriend registered as the sole owner. Disadvantage is that if your relationship with her goes down the drain, you might loose your investment.

2) Establish a company limited, needs to have 7 shareholders. You as a foreigner can hold maximally 49%. But only a limited number of people have the right to sign on behalf of the company, this can be only you and your girlfriend, or even only you.

3) Partnership. I believe that it has become more difficult to get a work permit on the basis of a partnership.

You might still not be aware of the fact that a work permit only gives you the right to do a specific job that the work permit has been applied for, such as general manager of your company limited, or maybe employee in your girlfriend's business.

[lukez]

Possible options are:

1) Have your girlfriend registered as the sole owner. Disadvantage is that if your relationship with her goes down the drain, you might loose your investment.

2) Establish a company limited, needs to have 7 shareholders. You as a foreigner can hold maximally 49%. But only a limited number of people have the right to sign on behalf of the company, this can be only you and your girlfriend, or even only you.

3) Partnership. I believe that it has become more difficult to get a work permit on the basis of a partnership.

You might still not be aware of the fact that a work permit only gives you the right to do a specific job that the work permit has been applied for, such as general manager of your company limited, or maybe employee in your girlfriend's business.

I guess the nr1 is the most simple way to do it, but i rather would go for 2 or 3. Which one of them is the "cheapest" and simplest way to do it? Im going to the law office today to get some information, but please let me know if you have any experience on this.

- Lukez

[blizzard]

all your useful cumments just baffle me. one say one t hing another say another.

why dont you people advise him on which legal firm to use. you know, they should know who has to be paid off, as sgthai says......lol.

what i want to know is your thoughts on can he ever be successful running a small thai massage shop. he cant be the first farang to try. others here must have had their dream of becumming the thai massage king of thailand.

or will he be lucky if he only loses a little. and be really lucky if he can make a decent thai wage.

i think there are just too many shops around already with no customers. the ones that have customers have pretty girls who im sure are into the monkie business part of the bisiness.

oops posted in wrong thread. but principle still applies. CAN HE MMAKE A GO OF IT!

Edited July 23, 2007 by blizzard

[lukez]

all your useful cumments just baffle me. one say one t hing another say another.

why dont you people advise him on which legal firm to use. you know, they should know who has to be paid off, as sgthai says......lol.

what i want to know is your thoughts on can he ever be successful running a small thai massage shop. he cant be the first farang to try. others here must have had their dream of becumming the thai massage king of thailand.

or will he be lucky if he only loses a little. and be really lucky if he can make a decent thai wage.

i think there are just too many shops around already with no customers. the ones that have customers have pretty girls who im sure are into the monkie business part of the bisiness.

oops posted in wrong thread. but principle still applies. CAN HE MMAKE A GO OF IT!

I wouldnt mind having a massage shop aswell with full of hot chicks, but thats not what i was asking hehe ;-)

Anyways i am talking w a law company in Patong, not sure how "respectable this one is". Anyone can recommend some good one?

- Lukez

[sgthai]

all your useful cumments just baffle me. one say one t hing another say another.

why dont you people advise him on which legal firm to use. you know, they should know who has to be paid off, as sgthai says......lol.

what i want to know is your thoughts on can he ever be successful running a small thai massage shop. he cant be the first farang to try. others here must have had their dream of becumming the thai massage king of thailand.

or will he be lucky if he only loses a little. and be really lucky if he can make a decent thai wage.

i think there are just too many shops around already with no customers. the ones that have customers have pretty girls who im sure are into the monkie business part of the bisiness.

oops posted in wrong thread. but principle still applies. CAN HE MMAKE A GO OF IT!

I wouldnt mind having a massage shop aswell with full of hot chicks, but thats not what i was asking hehe ;-)

Anyways i am talking w a law company in Patong, not sure how "respectable this one is". Anyone can recommend some good one?

- Lukez

You don't need a law firm to do a business set up,just an accounting firm which processes visa,work permit,co.registration etc.

Law firm can do it but will cost more.

You'll be able to search these enquiries through the daily newspaper.

Good luck to your business.

[lukez]

Thanks sgthai, very usefull stuff...gotta start working on this...

- Lukez

[keestha]

For addresses/phone numbers of for instance accounting firms, go to the website of the Phuket Gazette. By the way a lot of the paperwork you can do yourself (cheaper), just go to the appropriate government office and enquire, they will give you a list of documents you have to submit. For company registration: an office called panit changwat, for the work permit the labour office (leng ngaan), and the immigration office for the visa.

[Jersey_UK]

Possible options are:

1) Have your girlfriend registered as the sole owner. Disadvantage is that if your relationship with her goes down the drain, you might loose your investment.

2) Establish a company limited, needs to have 7 shareholders. You as a foreigner can hold maximally 49%. But only a limited number of people have the right to sign on behalf of the company, this can be only you and your girlfriend, or even only you.

3) Partnership. I believe that it has become more difficult to get a work permit on the basis of a partnership.

You might still not be aware of the fact that a work permit only gives you the right to do a specific job that the work permit has been applied for, such as general manager of your company limited, or maybe employee in your girlfriend's business.

I guess the nr1 is the most simple way to do it, but i rather would go for 2 or 3. Which one of them is the "cheapest" and simplest way to do it? Im going to the law office today to get some information, but please let me know if you have any experience on this.

- Lukez

I hope you post up the results of your trip to the law office.

FWIW (very little - given I have not and do not intend to set up in Bizness in Thailand.......although an MP is starting to sound attractive )..............I think you going to a lawyer initially rather than what sounds to be the cheaper option of an Accountant is the better option.

As you appear to be using this venture as a way to learn your way into business in Thailand (as well as keeping the G/f happy / busy ) then a few extra quid now is neither here nor there in the long run - as long as you come out of the process knowing what is needed / being done & why. I would go for the type of structure that you would later intend to use - probably not Nr 1. Plus using a law firm you will have an existing relationship to draw on at short notice in the event of any commerical disputes......and like any relationships, those built up over time tend to be the most productive / useful.

Personally I would try and choose a law firm that also had a criminal arm as well as commercial. Just in case and keep a business card handy / the number on your mobile. If cost were not prohibitive I would want a law firm that was of a size that also had offices in BKK.

Of course you will probably also later need an accountant

An Internet cafe - good idea or not? - at least the downside should be limited. maybe combine it with an MP?