New Busines In Thailand

[thewhites1212]

Advise needed

I have a friend who his thinking of buying a small guesthouse/bar business as a leaseholder.

He has a Thai Partner who will run it.

He has offered me a share in the business for a small payment

Can anyone answer the following

I believe as a foreigner he can have a business lease agreement in his name, is this correct

What documentation should i get for making me a shareholder

i presume the business will have too pay Tax, if so who should we approach an accountant or the tax office

Any downsides to this type of business, example having to pay tea money

If the lease if a rolling lease, say 2+2+2 is this secure and the owner/landlord has to adere to this after the first two years up.

Can the landlord at anytime move the goalposts as at the moment hes wanting a rental of 15,000 per month, but he may decide too increase.How do we stand legally

We are buying this off the leaseholder now who has just under two years remaining form his roll over lease, not the landlord/owner of building. Do we have to have seperate contracts

If i wanted to be employed and able to work, roughly how much would a work permit cost

Advise appreciated

[SunbeltAsiaExpert]

A foreigner, on an individual basis, can be a lease holder but if you want to use the leased premises for commercial/business purposes it is recommended to have the lease put into the company’s name as the company could directly credit the rental payments towards its reported company’s expenses. The lease gives the company the right to use the leased premises’ address as the company’s registered address. If the landlord has issued a letter of consent + the lease agreement in your personal name (e.g. not in the company’s name) it will not be sufficient for your designated company to register this leased premises as their registered address.

If you are a part of a registered a company where you would be one of the 3 shareholder (note: the minimum requirement to establish a company is 3 people), the information needed is:

1. A copy of your passport, and the Thai spelling of your name which could be obtained from your Thai marriage certificate, or your previous work permit. The Thai spelling is needed so that all your Thai official documents will be consistent.

2. Address (either in Thailand or in your home country)

3. Number of shares and the type of shares that you will be holding.

Different businesses require different licenses to operate in Thailand (i.e. operating a restaurant business would definitely require food license and may need Alcohol License and/or Tobacco & Cigarette License if the business owner intend to sell such items). Operation of a Guesthouse business (depending on the size/number of rooms) will require different classes of hotel licenses to operate (which are from different governmental authorities in Thailand). Sunbelt Asia is an expert in securing the necessary licenses to operate a myriad of business operations in Bangkok and throughout Thailand.

The security would not be secured if they are more than 3 year and was not registered at the land office. According to the land act, any lease which is over 3 year must be registered at the land office. As for your case 6 years (2+2+2),if there is any breach in the agreement, the lease would be upheld for the first 3 years. Under Thai law the option in a lease is for both parties Sunbelt Asia Legal Advisors do recommend to put clauses in a lease agreement that states that any additional options lie solely with the tenant and the lessee’s agreement to the additional option has already been granted to the tenant upon signing the original lease. Sunbelt Asia Legal Advisors also recommend that the lease should always stipulate the maximum increase in any additional rent that can be sought by the owner when the second option goes into effect.

Taking an over the existing lease where there are less than 2 years remaining and the current lease is not recommended. You must be certain that the current tenant has the ability/authority to transfer the lease to you/your company. Often this is not the case as leases often bar subleasing. You should not sublease but work with the landowner or with the landlord who has full authority over the property. Sunbelt Legal advisors is always willing to review leases for property and/or businesses that are considering a sale or sub-lease.

The government fees for obtaining Work permits starts at 850 Thai Baht and goes up to 3,100 Thai Baht depending on the length of the work permit’s validity. Sunbelt’s professional fees are the lowest when you are in need of securing a Work Permit or an extension of your current Work Permit and we will be happy to assist you.*

www.sunbeltlegaladvisors.com