Company Which Has Done Real Business, Buying A Property, Good Or Bad?

[Acky]

I am thinking about buying a house which will be transfered to a company which has been used to run a restaurant until 2007. Since then no business, but accounting has been done.

Is it a advantage to use a company for buying a property, which has been doing real business before or is it a disadvantage?

Right now there is 49% forein ownership in the company, because it was used to run a restaurant this was no problem.

Should that be changed to 39% or is that not a problem, because the company is already several years "old"?

Thank for you help

Acky

[scorecard]

Can I suggest that you check whether the registered structure of the company (registered at the Thai Companies Office) shows that the managing director is the sole position which can sign / authorize any form of document / transcation / activity on behalf of the company, and obviously who is currently assigned, by vote of the shareholders, to that position.

If you ultimately want to own (and totally control) a house and land through a Thai company then you must ensure that you get yourself assigned (by a meeting of shareholders) to the MD position (regardless of your shareholding %) to ensure you have absolute control of the company.

My lawyer also checks that the previous minutes of shareholder meetings don't contain any 'surprises', possibly meaning that if your ill or out of Thailand or something similar, then another person has full authrity to sign any documents / transact any business on behalf of the company.

Please also be aware that if the company sells the house then the company must pay appropriate company taxes on the sale of a company asset, which can (in certain curcumstances) be much higher than the personal taxes on the sale of a property. Again, other members can probably give more detailed advice on this point.

You mention that the company was started to run a restaurant. Are you totally convinced that there are no outstanding debts, liabiities, taxes or other legally binding commitments? Should you perhaps get a document signed by the previous shareholders and/or the director(s) of the company saying that they will accept full liability for any debts / commitments etc., which might arise in the future?

You say that the accounting has been done. Do you have proof that the various tax returns and company returnes have been lodged and finalized (year by year) at the various government offices?

To the OP, please ensure that any 'advice' you get on webboards (including my ramblings)are correct at law, there are many 'armchair lawyers' who will comment on what they think would be nice, but not always correct at law.

[Khun Jean]

Unfortunately most of those 'armchair lawyers' sit in nice offices with nice company names. I suggest reading many webboards to check what those lawyers say has any relevance with reality. Seriously!

I second 'Scorecard' comment.

You would be able to sell the house and land when it is owned by your company. If you buy the house on your personal name and lease or usufruct the land, selling is much more open to risk as you would be depended on the good relation you have with the landowner.