can i buy a small business with my thai partner

[muffinzman]

I have a couple of questions im hoping someone might be able to answer. Im australian and i want to buy a small business ( ie cafe, bar ) anywhere in thailand with my thai partner in the near future and i would like some information regarding the laws. Can i work in the business? If it was only us two can i work there? I am only lookiing at making a wage and was wondering would a business in the 1 million baht category be ok or are they usually a bit of a con? Is a 1 million baht business enough for a farang to buy into ? or is there a minimum size, amount etc

Would it help if i was married to my partner and what visa and conditions are there to buy a business. How much money would i need to have in my bank as well ie, marriage visa 400,000 baht, retirement visa 800,00 baht.

Thanks to anyone who can give me some advice

[ubonjoe]

In order to get a work permit you need at least 4 Thai employees and be working for a company or partnership with registered capital of 2 million baht.

You would not be able to get an extension of stay working unless yourself a salary of 50k baht and even then you would not be able to get one until you have a full year of tax records. You would only be able to get a multiple entry non-b visa and have to make border runs.

If you married your partner the registered capital would drop to 1 million baht and the number of Thai employees might also be lowered. You could then get an extension of stay based upon marriage by having 400k baht in the bank or an income of 40k baht income.

You cannot work on an extension based upon retirement.

[muffinzman]

Ok , thats disappointing but thanks for the information. I wouldnt have 2 million extra baht for registered capital or be employing anyone other than us two.Cheers anyway.

[ubonjoe]

You don't have to actually have the 2 million baht. The registered capital is just a number used when you register the company. You pay extra when you register the company for each 100K baht of capital.

[muffinzman]

ok thanks mate that makes more sense.

[recycler]

You don't have to actually have the 2 million baht. The registered capital is just a number used when you register the company. You pay extra when you register the company for each 100K baht of capital.

My latest experience a few years ago in Chonburi is that they want to see proof of the 2 million Baht in a Thai bank account if a foreigner registers the company. I ended up taking over an unused company, but you need to be careful with that avoiding hidden liabilities.

About operating a bar or cafe or bar I would look around long and see if others are making any money on this. From what I have seen in over 10 years that I've been here is that it's extremely difficult to make any money in this kind of business even at much larger scales than 1 million Baht.

Most people come to Thailand to spend money and the whole country is geared up to help you with that, making money is a different matter!

[rotary]

The best way is start with enough money to have a large business then there is 98% chance you will have a small business in the end. It is hard go for little reward.

[belg]

what happens to the 2 million baht when you close your company, somebody pays it back to you or you just lost a small fortune ?

[ubonjoe]

what happens to the 2 million baht when you close your company, somebody pays it back to you or you just lost a small fortune ?

You should go back an read my explanation of what registered capital is.

[Suradit69]

You don't have to actually have the 2 million baht. The registered capital is just a number used when you register the company. You pay extra when you register the company for each 100K baht of capital.

During the registration process, the promoters will be required to supply the name, license number, and remuneration of the auditor the company is planning to hire. The company registration fee is 500 baht per 100,000 baht of registered capital. The minimum fee is 5,000 baht and the maximum fee is 250,000 baht.

http://www.boi.go.th/index.php?page=setting_up_a_business

[merlen10002]

I have sent you a PM , can help you about a business, give me a call.

[Eric Loh]

A suggestion. Start your cafe with your future wife as sole proprietor. The registration is fast and trouble free. No money in the bank rule. You can buy the cafe which is a private arrangement in your name. You may not get work visa but you can guide the business and when the right time for corporatization, change to business registration and apply working visa. You can stay here on a 90 days visa. I did it this way. Hope this useful.

[muffinzman]

Thanks Eric that sounds like a good idea

[Choctastic]

I am currently advertising a small business in Hua Hin. See... http://classifieds.thaivisa.com/business/business-for-sale/hua-hin-business-for-sale-273362.html and can give you some tips based on my experience.

1. If you are thinking of opening a small stall, cart, massage shop or kiosk, you can do it fairly cheaply and there is no need to create a company and incur the admin headache and extra costs. There are precious few taxes and these are cash businesses.

2. Whatever you do, if you appear to be making money, someone (several) will copy you and probably set up right next to you.

3. Location, location, location. No disrespect but most Thai village girls get starry-eyed about having their own business and the riches and status it will bring them. They don't care about location, costs or whether they will get any customers or not. They do not plan ahead, have no idea what market research is and will happily pay (or let you pay) exorbitant rents, that suck up any profit you make and enrich the landlord. Best advice. Be a landlord.

4. If you are going to employ staff, expect theft. I sacked 7 staff before I found an honest one. Keep it in the family.

5. If you are smitten by your doe-eyed maiden and can't refuse her request to help set up a business, despite your own reservations, prepare to lose your investment.

6. If by some chance, you actually make money and she gives it you, marry her. Women like this are rarities.

7. If you are buying an existing business, ensure you have a signed agreement, preferably with two Thai names. If you enter into any kind of partnership with a Thai, you may be putting yourself at a disadvantage. If you aren't sure if you can trust your Thai partner/spouse, then find someone you can trust and use them as a nominee. Or seek legal advice.

An agreement between two foreigners is probably fine.

When I first came here I set up a Trading company and shut it down after two years. The Chinese undercut everything I was selling, stole anything unique from my stands at Trade shows and copied it. And the Thai companies I sourced product from were, for a variety of reasons, uncompetitive. I shut it down, having learned a lesson and decided to start a small cash business, selling a product that wasn't already in Hua Hin. Works well for me and I have no regrets.

I would not be put off by doom-mongers as far as immigration is concerned. I use a Visa service here that can tell you how to resolve almost all problems.

Good luck!

[pjmansions]

these rules always seem crazy to me must earn salary of 50,000 baht a month how many businesses make any profit in the first year especially when you need to employ 4 thais before you can take any profit

maybe guest house sort of thing as you can do all the computer bookings etc behind the scenes and let wife do the face of the business

Edited May 14, 2014 by pjmansions

[connda]

You don't have to actually have the 2 million baht. The registered capital is just a number used when you register the company. You pay extra when you register the company for each 100K baht of capital.

I hate to be thick, but I plead ignorance on this one. I still don't get it. What exactly is registered capital if its not money in the bank or business. You just walk in, say you want to open a 2 million baht company, and pay the registration fee for the 2 million?