Selling A Business

[Kongsuwan]

I started a Thai company over a year ago. I spent well over 100,000baht to get it registered, named, lawyers fees and all paperwork in order. Unfortunately, I have not started running the business because all my money went into the paperwork. So, I am going to sell the business and am not sure what to ask for it. Can anyone make a suggestion? I would love to get back some of the money I put into getting it started up. This is a limited company and I have even paid taxes and accounting fees for last year in which I did not do any business whatsoever. I am being asked what I think is a fair price for the business and I would really like to say 70,000Baht. Does that sound reasonable?

Any advice would be helpful!

[WilliamCave]

I started a Thai company over a year ago. I spent well over 100,000baht to get it registered, named, lawyers fees and all paperwork in order. Unfortunately, I have not started running the business because all my money went into the paperwork. So, I am going to sell the business and am not sure what to ask for it. Can anyone make a suggestion? I would love to get back some of the money I put into getting it started up. This is a limited company and I have even paid taxes and accounting fees for last year in which I did not do any business whatsoever. I am being asked what I think is a fair price for the business and I would really like to say 70,000Baht. Does that sound reasonable?

Any advice would be helpful!

what is the company registered to do, were is it set up in thailand etc, then it can be narrowed down to a price.

[Springman]

I started a Thai company over a year ago. I spent well over 100,000baht to get it registered, named, lawyers fees and all paperwork in order. Unfortunately, I have not started running the business because all my money went into the paperwork. So, I am going to sell the business and am not sure what to ask for it. Can anyone make a suggestion? I would love to get back some of the money I put into getting it started up. This is a limited company and I have even paid taxes and accounting fees for last year in which I did not do any business whatsoever. I am being asked what I think is a fair price for the business and I would really like to say 70,000Baht. Does that sound reasonable?

Any advice would be helpful!

what is the company registered to do, were is it set up in thailand etc, then it can be narrowed down to a price.

[mattias33]

I started a Thai company over a year ago. I spent well over 100,000baht to get it registered, named, lawyers fees and all paperwork in order. Unfortunately, I have not started running the business because all my money went into the paperwork. So, I am going to sell the business and am not sure what to ask for it. Can anyone make a suggestion? I would love to get back some of the money I put into getting it started up. This is a limited company and I have even paid taxes and accounting fees for last year in which I did not do any business whatsoever. I am being asked what I think is a fair price for the business and I would really like to say 70,000Baht. Does that sound reasonable?

Any advice would be helpful!

I bought a company last year and i paid 25 000 for it. Registered, tax paid the last 2 years, and with alot of things set in it as for what i can do. Two Englich guys opened it up and they had buisness all over the place such as restaurants, bikerental, real estate etc. 25 different areas of witch i can work. One of them got married to a Thai and they realized the taxsaving by putting everything in her name, and all of a sudden they did not need the company. There is a possibillity they did not check what it was really worth, neither did i, just paid my attorney. Have to say i really dont know the value of companies, but there are cheap companies for sale out there since alot of people open them for visa-reasons only and after a while get tired of paying tax every month. Its possible i got mine really cheap, and you are able to get more. Given how much it cost to open a company, if you find somebody that are about to do it, i cant see why they not rather buy yours and save 25k. Go for it.

Good luck.

[stevemiddie]

I started a Thai company over a year ago. I spent well over 100,000baht to get it registered, named, lawyers fees and all paperwork in order. Unfortunately, I have not started running the business because all my money went into the paperwork. So, I am going to sell the business and am not sure what to ask for it. Can anyone make a suggestion? I would love to get back some of the money I put into getting it started up. This is a limited company and I have even paid taxes and accounting fees for last year in which I did not do any business whatsoever. I am being asked what I think is a fair price for the business and I would really like to say 70,000Baht. Does that sound reasonable?

Any advice would be helpful!

100K ????????????????

Jeeeeeeez. They saw you coming.

[AmericanGuy1066]

100k seems a lot. You're best hope is in someone wanting to do a similar "business".

You're not really selling a business anyway, you're selling a company. Given that set-up costs can be done much lower than that, and that whoever buys your company will have admin costs in making changes over and above the cost of purchase from you, you may be looking around 20k. eg buyer needs to change directors, share ownership, bank account signatures etc etc, over and above what they pay you.

Your best selling point for more than that would really be on who did the set up for you. If a reputable company this may carry some weight and be worth more if say Linklaters did it, as opposed to Mr.Somchai down the road.

Edited December 3, 2007 by AmericanGuy1066

[Chang_paarp]

I paid less than 20K for my company. The deal was 1/2 what it would cost to set up from scratch.

That should give you some idea as to the value of the product.

[Kongsuwan]

Well it was set up to be an export company. It was set up here in Bangkok but I changed the head office to be in Chumphon. It sounds like people think I paid way too much. I had a feeling that was the case. It was set up by a law firm in Bangkok. Now they are the ones that may be interested in buying it from me since I cannot afford to run the business and do not want to continue to pay tax on something I do not need/use. They have asked me what I think for the sale of the company. Hmmm.

[Zen]

Interesting topic...What if the company is a sole importer and distributor of a certain product and has operated for 2-3 year..The registered capital is 2.1million baht but it's there just for the sake of paper, in actual fact that money wasn't pumped in. In such as case, how is the valuation done?

[capco1]

I bought mine in Pattaya from another farang who did the same as you....Cost me 15k Baht and 5k in lawyer fee's. Sounds like you got taken for a ride.

[Greenside]

I started a Thai company over a year ago. I spent well over 100,000baht to get it registered, named, lawyers fees and all paperwork in order. Unfortunately, I have not started running the business because all my money went into the paperwork. ............... Does that sound reasonable?

I'm no help in answering your original question but out of interest, whatever kind of business were you planning to set up with the change from 100K after registration?

[ThaiLawOnline]

Prices for companies will depend on the capital registered, if you need a translation, if the director is a foreigner, if you need a non-b visa with the company + work permit in the package, etc. It's not so easy. Forming a company under the treaty of Amity will be more expensive too...

To register a 1 million baht capital cost 5,500 for the government fees.

Double for a 2 million baht capital.

There are other small government fees.

The money invested (capital) will be checked or not according to different laws, the shares of the foreigners, etc.

It's important to keep the accounting, taxes, etc OK if you want to use a company for a visa, work permit, etc.

And some legal firm will find you nominees for your company, which is illegal, and will charge you money for that.

There are several things that you should check, do you have a tax number? What about the VAT? License or not to operate some kind of businesses, etc.

You might need to modify the objectives of a company that you buy, find shareholders and double check the accounting.