Buying a business and/or corporation that has work permit.

[liberty9133]

I have searched and searched and can find no info on this.

What I am looking for is how to get a work permit and visa from buying an existing on going business. I realize that due diligence for all previous busines dealings is essential.

What i don't understand is

1. Can I as an American buy an existing business that currently is allowed to issue one work permit (or more) ?

2. If i can buy that business for less than 2 million Baht, including all assets, can i still get the work permit?

3. If i can buy that business for less than 2 million Baht, can I later revalue the assets for more than the purchase price, if i cannot do #2 above?

4. What other considerations must i worry about?

a. will I still have to find a way to structure the company with more than 51% ownership? (no girlfriend at this time)

b. If so, how can i maintain full control of the company?

c. If i still must find a way to have 51% ownership, can i find a way to set up straw men?

d. How Can I pay less than the minimum for a very small operation?

A small guest house/cafe with about 50,000 net income per month, by way of example.

e. Where can i find such businesses if any of this works.

f. There are many businesses for sale by farang it seems. Why? Other than poorly run businesses of which i see many.

[ubonjoe]

Moved to the business forum.

[liberty9133]

Why move this to a forum no one uses? This is a legit question for visa section since there are many answers here that are very close to my needs?

[digitalchromakey]

1. Yes.

2. Yes

3. N/A

4a. Yes - As an American - Treaty of Amity is one way.

4b. Preference Voting Shares.

4c. Yes, but it's quasi legal - undated resignation letters and share transfer forms.

4d. You only need evidence of taxes and social insurance paid, no evidence of salary paid will be requested.

4e. Start from scratch is always better as there will be no 'surprises' but you would have to wait 2 years before an extension of stay on the basis of working in Thailand would be possible.

4f. You answered your question, kind of - as a foreigner, it's very difficult to run a business here legally plus pay all the costs, when you are mostly competing with Thais who often do not even pay any taxes - so their on costs are much lower than yours ever could be.

Good luck and be careful, plus never invest more than you can afford to lose.

[faxx]

I have a small shell company for sale. I wanted to dissolve it because I no longer require a work permit. However, I would also be selling it for a small price as long as I can find a buyer. It will be cheaper and quicker than starting a new Limited company. The Co., Ltd. is a consulting shell and has no liabilities, but a loss of 2 Million Baht that are paid for. It means the first 2 Million Baht of profit will not be taxed. Accounting and audits are clean. Hit me up if interested, please.

Edited September 13, 2014 by faxx

[innerspace]

Questions 2 and 3 suggest you misunderstand the requirements of setting up a business.

2 million registered capital means that is the most that your limited company is liable for if insolvent, it does not mean the company is valued at that or needs that invested from the start.

As an American you are best starting a new company under the treaty of amity.

Companies are often for sale since it costs more to close a business than start one. You have one offer here already. Bit be thorough in due diligence, when you buy the company you assume any debts or legal obligations, past or future. Risky. No offense faxx, you may be genuine, op just cover your bases if going that route.

The primary benefit of a ready running business is skipping 1st year limitations like business visa extension of stay before you have year end tax returns. The financial savings are negligable, a new 2m company costs just 15k or so in fees (plus lawyer). WP and visa fees are same on new company or old.

[faxx]

No offense faxx, you may be genuine, op just cover your bases if going that route.

The primary benefit of a ready running business is skipping 1st year limitations like business visa extension of stay before you have year end tax returns. The financial savings are negligable, a new 2m company costs just 15k or so in fees (plus lawyer). WP and visa fees are same on new company or old.

No offense taken. Of course buyers need to do their due diligence. A possible transaction would be sanctioned by a reputable corporate law company. Buying an aged shell company or legal entity can be of great financial benefit. For a 2m company it is worth around 300k in tax savings. If I am not mistaken 15% is paid on corporate profit. It's a pretty nice amount for people who will run a profitable business, actually.