Starting A Hotel/guesthouse - What Is Needed

[mmail2you]

I am in the throws of redeveloping an existing building and am planning on setting it up as either a Hotel or Guesthouse, some details are:

Location = Pattaya

Size = 6 rooms over 3 floors

Owner is my Thai company

Questions:

Which is easier or what is the difference on setting it up as either a Hotel or Guesthouse

What is the cost associated with registering it ?

Does this registration occur at Pattaya City Hall ?

Is it better to have the business setup under my Thai Wifes name as I do truust her and what is the tax implications if done this way ?

Is it better to have it setup under my current Thai company ?

How long does it take to get licenses ?

Thanks for any insights into this

[Sunbelt Asia]

It is all about naming your business, some business owners call their business as a resort, some call as a hotel, motel, guesthouse, service apartment, etc.

The government determines whether you are a hotel or other type of hospitality service (Apartment) by the nature of its accommodation service. A hotel is defined as providing accommodation on a short term basis (less than a month), apartment long term If you have a mixture of long and short term, then it would be considered a hotel.

Hotels are required by law to make a daily report to Immigration of the number of guests staying for that night as well as name, passport number etc. There are fines if this reporting is not done.

Criteria for applying for hotel license are:

1. Building type (must be concrete)

2. Purpose of the hotel (must serve the accommodation purpose for tourists (locals & foreigners)

3. Location (must not be situated near the school, temple/religious place, governmental offices [at least 100m away], must be convenient for inspection, entrance must not cause traffic congestion)

4. Parking lot – must have sufficient parking space, parking space must be separated from the accommodating place)

Approval fee and annual fees (calculated on the rental rate basis)

1. Room rental rate charging for no more than 40 Baht will be incur a government fee of 10 per room

2. Room rental rate charging for more than 40 Baht but less than 80 Baht will be incur a government fee of 20 per room

3. Room rental rate charging for more than 80 Baht but less than 120 Baht will be incur a government fee of 30 per room

4. Room rental rate charging for more than 120 Baht but less than 160 Baht will be incur a government fee of 40 per room

5. Room rental rate charging for more than 160 Baht but less than 200 Baht will be incur a government fee of 50 per room

6. Room rental rate charging for more than 200 Baht but less than 240 Baht will be incur a government fee of 60 per room

7. Room rental rate charging for more than 240 Baht but less than 280 Baht will be incur a government fee of 70 per room

8. Room rental rate charging for more than 280 Baht will be incur a government fee of 80 per room

It would have to be approved Provincial City Hall which would take approximately 30 days

You would also need to consider other licenses such as for food, food storage, alcohol, cigarette and health and safety.

Using a juristic entity may help to limit the amount of liability deriving from any unforeseen events in the business. so there is no reason to not use your Limited Company. You would, however, need to add it as an objective to your company.

[sunbeltlegal][/sunbeltlegal]