How To Set This Up?

[MuayThaiGuy]

I'm a 28 year old from Canada. I'm looking to purchase a Muay Thai gym. I don't want to buy the land, I just want to pay the "key money" as they call it and take over the lease.

If I was to pay the "key money" for the business, what would happen if the land owner ended up selling the land later on? It's for sale.

Is it in any way possible to set things up so the majority of the shares could be owned by foreigners?

I have a Thai fight promoter who will be in for 20%, but I would like to spread the remaining 80% of the shares amongst myself my foreign investors (one is from Canada and another is from USA).

Is this possible? We don't have the 2 million baht to show either..

If it HAS to be 50.1% Thai owned, is there any loopholes around that? I have a long term girlfriend here, but I just don't like the idea of just giving away shares of a business to people who aren't going to be involved in financing or even running it. Also, there are trust issues involved too. You can't predict the future and anything can happen to severe relationships.

Anyway, any guidance would be greatly appreciated..

[Sunbelt Asia]

You have several key issues to consider. First and foremost is the lease. If the lease was only a 3 year lease and not registered at the Land Office and if the new owner did not honor the lease you would need to file a lawsuit against the original landlord for breach of contract. If it is longer than 3 years and is registered at the Land Office then the new landlord would have to honor the registered agreement. However the previous owner may offer compensation to the lessee upon sale.

The other very important issue that you face is that in order to operate a boxing camp you must have a Thai national as director of the camp. The boxing camp license could be granted to a juristic identity, but it must be a Thai juristic identity with Thai representative (Thai authorized director). That means your company must be majority owned by Thai nationals.

Muay Thai is considered a protected part of Thai cultural heritage and according to the Boxing Act B.E. 2542, the government regulates and oversees not only the qualifications of the director but also the welfare of the boxers.

http;//www.sunbeltlegaladvisors.com