2 Mill Capital For 99000 B Business?

[badboybilly]

Now i recently saw a internet business for sale at 99000 baht.

My boyfriend who was excited and good at computers insisted we buy it.

I started to explain to him the rigamarole we have to go thru.

Company rego,2 mill capital etc etc.

Now if i wanted to sppend the 3000 dollars 99000 b on buying the cafe for him but still safeguarding myself meaning i own a portion do i still have to have 2 mill cap,register a company and go thru all that just for him to work iyt making say a profit of 8000 to 10000 per month?

[badboybilly]

The problem is i dont have 2 million baht.

I have about 500 000 baht.

Im not sure because i have read sunbelts pasts posts saying you dont have to show 2 mill cash etc but he was never clear about that.

If i can just register a business in my boyfriends name and then i put the lease in my own name then i dont suppose i need capital?

The business is only selling for 100 000 b ,i dont want too much expense.

[Flummoxed]

99000 Baht! Are you sure you didn't leave a zero off the end?

Perhaps the computers are running 386 processors.

[Khutan]

99000 Baht! Are you sure you didn't leave a zero off the end?

Perhaps the computers are running 386 processors.

<{POST_SNAPBACK}>

True, but at the end of the day, all an Internet or IT business is, is some Intellectual Capital and second hand computers.

So 99,000 for Gross Capital Value would be close to the mark - a few second hand servers and workstations - how much else would you pay ?

The other question - Go and talk to your advisor, there are many ways of doing the capitalisation.

[badboybilly]

In the last few days i have spoken to the landlord of the internet shop.Rent is 6000 baht per month,there are upstairs rooms.The lease is 3times 3.

THe shop is not in a busy area but in a laneway.

Now i told the landlord i am not going to register a company to buy a business for 100 k baht.He told me that i dont have to have a company and to do what his other foreign renters do and sublease it,that is a thai rents from him and i rent from the THai?

Obvoiusly dont understand it but it could make sense anyone heard of subleasing ? That way no company is formed?

[Sunbelt Asia]

Im not sure because i have read sunbelts pasts posts saying you dont have to show 2 mill cash etc but he was never clear about that.

Correct you do not need to show 2 million Baht

unless you have an Alien Business License. Which you don't have.

He told me that i dont have to have a company and to do what his other foreign renters do and sublease it,that is a thai rents from him and i rent from the THai?

Obvoiusly dont understand it but it could make sense anyone heard of subleasing ? That way no company is formed?

You don't have to sublease. You can lease direct with the landlord. DO NOT work in the shop without a work permit unless you want to be deported. In order to get a WP, you need to form a company.

Get protection for yourself. At the VERY LEAST, get a non immigrant visa NOW so if complications arise you are not deported for 99 years.

For protection of your investment, you can form a company for 2,500 Legal, 3,000 Tax Id, Company reg on 100,000 Baht would be 550 Baht, Government fees of 1,450 all for 7,500 Baht. You are then the MD of a limited company.

For more safegards add 3,000 Baht where you can control the company it but not work in it.

10,500 Baht to never be kicked out. Even for 100K investment well worth it.

The landlord of the premises doesnt care he said.HE WANTS 3 MONTHS RENT IN ADVANCE,WIL L throw the name of the lease in my BF name until i know what im doing. Enough said,see how easy that was!

It is always easy to throw money away. Trying to get the money back from people, is when lawyers cost more.

In most cases and I hope it won't be yours...the landlord doesn't care as he just wants your money. Ther BF doesn't care as he has a computer shop in his name. Nobody cares until the foreigner wants part of the profit. Most find out then... they have nothing because they took the easy way. My advice still stands, protect yourself unless you can walk away from the 100,000 Baht.

www.sunbeltasia.com

[yuyi]

Im not sure because i have read sunbelts pasts posts saying you dont have to show 2 mill cash etc but he was never clear about that.

Correct you do not need to show 2 million Baht

unless you have an Alien Business License. Which you don't have.

He told me that i dont have to have a company and to do what his other foreign renters do and sublease it,that is a thai rents from him and i rent from the THai?

Obvoiusly dont understand it but it could make sense anyone heard of subleasing ? That way no company is formed?

You don't have to sublease. You can lease direct with the landlord. DO NOT work in the shop without a work permit unless you want to be deported. In order to get a WP, you need to form a company.

Get protection for yourself. At the VERY LEAST, get a non immigrant visa NOW so if complications arise you are not deported for 99 years.

For protection of your investment, you can form a company for 2,500 Legal, 3,000 Tax Id, Company reg on 100,000 Baht would be 550 Baht, Government fees of 1,450 all for 7,500 Baht. You are then the MD of a limited company.

For more safegards add 3,000 Baht where you can control the company it but not work in it.

10,500 Baht to never be kicked out. Even for 100K investment well worth it.

The landlord of the premises doesnt care he said.HE WANTS 3 MONTHS RENT IN ADVANCE,WIL L throw the name of the lease in my BF name until i know what im doing. Enough said,see how easy that was!

It is always easy to throw money away. Trying to get the money back from people, is when lawyers cost more.

In most cases and I hope it won't be yours...the landlord doesn't care as he just wants your money. Ther BF doesn't care as he has a computer shop in his name. Nobody cares until the foreigner wants part of the profit. Most find out then... they have nothing because they took the easy way. My advice still stands, protect yourself unless you can walk away from the 100,000 Baht.

www.sunbeltasia.com

<{POST_SNAPBACK}>

Once again, Greg, this is great advice, thanks!

This does mean that just by being MD, which means signing some papers from time to time, having a board meeting (with yourself ) to decide on important issues, such as opening a bank account, you are not yet considered working, thus no need for a work permit etc.

Is this correct?

[badboybilly]

Thanks Sunbelt for your great advice and assistance.I didnt know i could register a company that cheap.Especially when i just looking at 100k businesses such as internet cafes or hair salons and i dont have 2 mil capital.

Just a couple of things,the limited company ,is there a difference ,if i had 2 mil capital or its the same?

What do i have to bring to the interview with you to register a company?

When should i get a non immigrant visa you were talking about and do u arrange this?

Can i also hire sunbelts services to assist me in legally buying the business,leasing from landlord etc?

[dr_Pat_Pong]

Thanks Sunbelt for your great advice and assistance.I didnt know i could register a company that cheap.Especially when i just looking at 100k businesses such as internet cafes or hair salons and i dont have 2 mil capital.

Just a couple of things,the limited company ,is there a difference ,if i had 2 mil capital or its the same?

What do i have to bring to the interview with you to register a company?

When should i get a non immigrant visa you were talking about and do u arrange this?

Can i also hire sunbelts services to assist me in legally buying the business,leasing from landlord etc?

<{POST_SNAPBACK}>

Badboy and Pattaya gay same same. BYE

[ZOVOX]

99000 Baht! Are you sure you didn't leave a zero off the end?

Perhaps the computers are running 386 processors.

<{POST_SNAPBACK}>

True, but at the end of the day, all an Internet or IT business is, is some Intellectual Capital and second hand computers.

So 99,000 for Gross Capital Value would be close to the mark - a few second hand servers and workstations - how much else would you pay ?

The other question - Go and talk to your advisor, there are many ways of doing the capitalisation.

<{POST_SNAPBACK}>

With the equipment that he is likely to get, he would only be able to handle people using the internet for e-mail. The most succesful internet cafes offer gaming because the players spend hours and hours playing. sending e-mail takes a few minutes and does not generate much income. The original poster said that the shop is in a backstreet location - i think the business is a dead duck !!

[Khun Jean]

An Internet shop is not for making money. I am in Lamai (Koh Samui)and can charge 1 baht per minute.

My rent is 7000 baht, electricity 2000. Depreciation of equipment etc..

Total is around 15.000 baht per month. ( mmm no salaries.....)

For that i need to sell 15.000 minutes / 30 days is 500 baht per day.

500 baht is 500 minutes. 5 computers is 100 baht per computer per day.

In high season i can reach 300 baht per computer/per day. So i make a profit. Problem is high season only lasts for 3-4 months.

To solve this add "Cafe". Use internet to attract customers and try to sell other things. I sell (in the order of profit): CD-Burning, icecream, fruit drinks, snacks, Digital image printing. I have a wifi hotspot that is free when people order drinks or food. Try to find something that makes your shop "different" a reason people will go a little further to come to your place. Promote it!

My main work is working remote over the internet, so this whole internet shop is convenient to provide me with a business, workpermit etc. NOT for making much profit.

I choose not to do something like a gameshop because it will give you a headache. You need more sophisticated equipment for that = more expensive = less profit.

A game shop i can see working is one with X-boxes or PS2 stations. Theyre dirt cheap.

[Khutan]

I am taking a different slant on it, I am setting up a guest-house, with all the extra's for guyss who want a different experience doing a visa run. To me, internet is just another service I am offering - no more. To me its like the old days when Colour TV first started, people would go and stay at a motel/hotel because it has colour tv, now who cares ?

I think the internet is becoming the same.

And of course when I don't have guests, I can attract a few locals to try the net and put their hand in their pockets....

[ZOVOX]

An Internet shop is not for making money. I am in Lamai (Koh Samui)and can charge 1 baht per minute.

My rent is 7000 baht, electricity 2000. Depreciation of equipment  etc..

Total is around 15.000 baht per month. ( mmm no salaries.....)

For that i need to sell 15.000 minutes / 30 days is 500 baht per day.

500 baht is 500 minutes. 5 computers is 100 baht per computer per day.

In high season i can reach 300 baht per computer/per day. So i make a profit. Problem is high season only lasts for 3-4 months.

To solve this add "Cafe". Use internet to attract customers and try to sell other things. I sell (in the order of profit): CD-Burning, icecream, fruit drinks, snacks, Digital image printing. I have a wifi hotspot that is free when people order drinks or food. Try to find something that makes your shop "different" a reason people will go a little further to come to your place. Promote it!

My main work is working remote over the internet, so this whole internet shop is convenient to provide me with a business, workpermit etc. NOT for making much profit.

I choose not to do something like a gameshop because it will give you a headache. You need more sophisticated equipment for that = more expensive = less profit.

A game shop i can see working is one with X-boxes or PS2 stations. Theyre dirt cheap.

<{POST_SNAPBACK}>

You can make money from internet cafes, but you need a good location. The best locations are near the universities: some of the places are packed from open to close, with students playing games all day. But you need to invest and re-invest in new equipment, but this is true in any business, but especially in computer-related businesses. Once you can get the punters in for long periods, you can sell them cigarettes, food and drink for extra revenue. People sending e-mails are not in the shop long enough to buy anything, and people are not going to go into an internet cafe to specifically buy food and drink - that's what seven/elevens are for !! I don't know where you are in Koh samui, but if you are talking about high/low season, it sounds like you are only getting tourists, who only e-mail.

[Sunbelt Asia]

This does mean that just by being MD, which means signing some papers from time to time, having a board meeting (with yourself  ) to decide on important issues, such as opening a bank account, you are not yet considered working, thus no need for a work permit etc.

The letter of the law says if you are a MD, you are suppose to have a work permit if you live in Thailand. However, you want to know how many people own houses and land with their company and are the MD? Thousands and thousands and 99% of those don't have a work permit.

We strongly advocate to have a work permit oif you are working. If you choose not to, at least have a non immigrant visa.

Just a couple of things,the limited company ,is there a difference ,if i had 2 mil capital or its the same?

The same

What do i have to bring to the interview with you to register a company?

Your passport and money.

When should i get a non immigrant visa you were talking about and do u arrange this?

yes

Can i also hire sunbelts services to assist me in legally buying the business,leasing from landlord etc?

This is a service our lawyers do for client’s everyday and they are happy to do so.

The original poster said that the shop is in a backstreet location - i think the business is a dead duck !!

Odds are high; it will be if it’s NOT near tourists or a school. Location, location and location is the key.

A game shop i can see working is one with X-boxes or PS2 stations. Theyre dirt cheap.

Noisy but profitable. One thing you should be aware of Cabinet several weeks ago approved that gamers under 18 would be limited to playing online games to a maximum of three hours a day, while the 10pm to 6am restriction for young players will remain in force to prevent possible addiction. The Interior Ministry is turning these measures into ministerial regulations now which include the ban on online gambling and lucky draws or the selling of game-related items to players.

All 5,670 Internet cafes in Thailand will be required to have a license as well.

I have a friend who own a Internet Cafe under a Alien Business License that charges 2 baht a minute ( 60 Baht minimum) Gross is always 40,000 per month mininum. Net profit is 17,750 baht per month after rent, depreciation, tax. You can’t get rich on an Internet Cafe but 200,000 Baht return a year on a 150,000 Baht investment beats any interest the bank pays. He spends 30 minutes every two days, checking the computers and recharging the cards with credit. It comes out to 2,300 Baht earned per hour for the 87 hours spent a year, being involved as the owner.

www.sunbeltasia.com