Starting A Business

[LostInTranslation]

I have just moved to Thailand with my Thai wife and we are looking to own our own business. We would like to get into the hotel or restaurant business in Phuket or some other tourist area. I have seen some places that are offering leases for sale but I am not exactly sure what that means. What do you buy if you are buying the lease to a business? Also, if we were to buy a business, would we need to set up our own company before actually making the transaction? We will be consulting with an attorney in the near future, but just curious if anyone has any advice.

[johnnyk]

Buying the lease means you are buying a piece of paper that gives you the right to occupy the premises. You have the right to pay rent and you have the right to pay increased rent when the lease expires, particularly if your business is succesful. The landlord may also give you the right to pay him a largish lump sum for the piece of paper that entitles you to pay the rent.

Best take on these 'rights' through a limited liability company. Otherwise its YOU who will be personally liable.

[Ubon9]

Buying the lease means you are buying a piece of paper that gives you the right to occupy the premises. You have the right to pay rent and you have the right to pay increased rent when the lease expires, particularly if your business is succesful. The landlord may also give you the right to pay him a largish lump sum for the piece of paper that entitles you to pay the rent.

Best take on these 'rights' through a limited liability company. Otherwise its YOU who will be personally liable.

Hi

The limited company can help you in all the aspect of running the business (tax etc.) but the rent to the landlord it is on personal guarantee basis.

[MMR]

I have just moved to Thailand with my Thai wife and we are looking to own our own business. We would like to get into the hotel or restaurant business in Phuket or some other tourist area. I have seen some places that are offering leases for sale but I am not exactly sure what that means. What do you buy if you are buying the lease to a business? Also, if we were to buy a business, would we need to set up our own company before actually making the transaction? We will be consulting with an attorney in the near future, but just curious if anyone has any advice.

Yes, unless a company is part of the sale, you will need to set up a company to control the business.