Opening A Guesthouse/Hotel?

[mmmarcus]

So whats the best way of opening a guest house/hotel in Thailand?

If im not gonna employ any foreign citizens, would i still need 2 million baht in capital?

Is there some way around this? I guess i could register it to some Thai i know instead? (trust issue of course)

Ive heard that hotels/guesthouses can be 100% foreign owned in Thailand, is that true?

Thanks in advance

Best regards

[RickBradford]

The Foreign Business Act has 3 lists of businesses forbidden to foreign-owned companies.

List 3 Item 17:

(17) Hotel business, except for hotel management service.

That would imply that the most you can do is offer 'management services' to a Thai-owned hotel.

If you are an American national, you can often sidestep these restrictions by invoking the US-Thai Treaty of Amity and Economic Relations

[mmmarcus]

Thx Rick.

Why is there a list of businesses that cant be foreign owned? Shouldn't there be a list of businesses that CAN be foreign owned.

Anyway. So I have to go with the normal deal of 49% ownership then. Or do you mean that i cant own a hotel at all? How does all the other foreign owned hotels (non Americans) overcome these

restrictions in that case?

How does the thousands of thousands of westerns that opens guest houses, bars and restaurants do this? I cant believe that all of them are paying that 2 million baht in capital, they must all be writing the businesses on their girlfriends right?

[RickBradford]

How does the thousands of thousands of westerns that opens guest houses, bars and restaurants do this? I cant believe that all of them are paying that 2 million baht in capital, they must all be writing the businesses on their girlfriends right?

@mmmarcus

There is no requirement for Thais to open formal companies at all -- think of all those street vendors out there.

The only time Thais will open a company is when the business gets big enough to require some formal credibility, or; when they want to formally employ a foreigner.

I think that most of those westerners who have 'opened' bars, etc, claim that it is their wife's business (maybe not having opened a company) and that they don't work there or have any formal interest in the business.

Why is there a list of businesses that cant be foreign owned? Shouldn't there be a list of businesses that CAN be foreign owned.

It looks better to say "everything is allowed if it isn't specifically forbidden" than to say "everything is forbidden unless it is specifically allowed", don't you think?

Edited August 4, 2011 by RickBradford

[notime]

I'm not sure what you guys are actually talking about here.

2 million THB is the smallest amount that has to be shown on the Thai company registration paper as the company capital. It's just a figure (for formal accounting purposes) and it doesn't need to be paid anywhere.

Who cares what foreign owned companies can own and run if you are opening a THAI company? Thai companies can own everything including land. That's how the business is done here. There are ways that as a foreigner you can control the Thai company. Ask Thai lawyers or read info on their websites.

But in the end, how can OP get into hotel or guesthouse business here without spending at least 2 million THB? Do you think you can buy a hotel in Thailand for 100,000THB???? From my experience it is more like 2 million US$ so pleeeesse .. don't be dreamers! Or maybe find yourself a hotel to buy in UK for 41,000 GBP (2 million THB).

[raro]

I'm not sure what you guys are actually talking about here.

2 million THB is the smallest amount that has to be shown on the Thai company registration paper as the company capital. It's just a figure (for formal accounting purposes) and it doesn't need to be paid anywhere.

Who cares what foreign owned companies can own and run if you are opening a THAI company? Thai companies can own everything including land. That's how the business is done here. There are ways that as a foreigner you can control the Thai company. Ask Thai lawyers or read info on their websites.

But in the end, how can OP get into hotel or guesthouse business here without spending at least 2 million THB? Do you think you can buy a hotel in Thailand for 100,000THB???? From my experience it is more like 2 million US$ so pleeeesse .. don't be dreamers! Or maybe find yourself a hotel to buy in UK for 41,000 GBP (2 million THB).

The smallest amount to open a Co., Ltd. is 100,000 Baht. If you want to employ a foreigner you need to register 2 Mio. The registered capital must be paid up after a certain time, I think one year it was.