Thinking of purchasing a business. Requirement advice needed

[aussiejon1604]

Hi all.

Firstly if this question has been posted previously, could you please supply me the link?

Currently I am on an ed-visa and whilst I have been attending school and studying, I am thinking there might be other options available for me being at an age of 46 and below the retirement visa qualification.

I am considering purchasing a bar and before I hear all the cries of don't, please hear me out. Presently an ed-visa costs me 40,000B per year. 22,000B for tuition fee's. 1,900B for 90 day extensions and 10,000B for a trip to Laos for an application for its possible renewal. These figure's are variable but it has cost me this much this year so just consider the amount as subjective for this inquiry. Along with this, there is always the chance of not receiving each 90 day extension whilst the ed-visa remains under scrutiny. Rent of a room also needs to be added to this as with most of us who have living expenses here in Thailand. This yearly cost and 90 day extensions creates an instability that I'm not too comfortable with and feel there just might be another option available that secures me 12 months at a time. The elite card is something that does not interest me.

When I was previously married to a Thai, my wife owned a massage shop but as a farang I was not involved with it's management or ownership so I am unfamiliar with a business visa and how many Thai staff are required etc. Whilst the shop seldom made any money, it did however allow my wife to pay her staff, and us live above it rent free and have all of the utilities paid for.

My current consideration is to find a bar that's rent and utilities are comparable to my current monthly rental of between 10 -15,000 per month. I have investigated a few opportunities that would see my own accommodation included on the premises. Employee salaries and utilities would of course remain the responsibility of the bars sales and if more is achieved, then it could be put towards the monthly rent reducing my own personal living costs. The entire aim would be to break even every month ie rent, utilities, salaries, licenses etc. Anything more would just be a bonus.

I am not looking to make a fortune as this would be highly unlikely. What I am seeking is the opportunity to change visa's and with it create a little more stability for myself beyond the ed-visa. I have spent 8 years working and managing bars back home so the environment is not totally unfamiliar.

If any member could offer up the requirements and what I need to arrange prior to purchasing a business it would be greatly appreciated.

Thanks

[Soutpeel]

Don't do it is my advice

[pmarlin]

Lot of little beer bars for sale, most of them the current owners been there for less than a year. I know of several owners of bars and none of them are making it. Most require trips to the ATM to pay rent etc. Also none of them have a visa extension connected to being an owner of a bar. Most of them are on retirement or marriage extensions. a few on ed or tourist visas. Even some of the big bars have managers who do not have work permits.

Good luck you will need it.

[ubonjoe]

You do not need anything visa or work permit wise to purchase the business.

After have the business you will need to apply for a work permit. It will have to be registered and show 51% Thai ownership and have 2 million baht of registered capital, 4 Thai employees and few more things before you apply for the work permit.

After you have the work permit application done you would be able to get a single entry non-b visa and then after you get the work permit you could get a multiple entry non-b visa. . An extension of stay would not be possible until you have one year of tax records and proof you are paying yourself a salary of 50k baht.

[samran]

As a business owner, I wouldn't buy a business unless you are in it to maximise profit and are prepared to work.

All these calls of just wanting to 'break even' don't really cut it in my book, not for any other reason than that a business comes with overheads and you have to work just to break even.

[xylophone]

You do mention that the rent should be around 10 to 15,000 baht per month, however have you taken into consideration the fact that (usually) you will need to pay "key money".

This was a alien concept to me when I arrived here, however have since found out that it is the norm, whereby one pays a lump sum upfront and then a monthly rental. Having said that with times being what they are and many bar owners desperate to sell, you may well find an opportunity just to take over the business on a monthly rental basis?

PS. Not that I would recommend buying a bar, but you weren't asking for that advice!

[Suradit69]

Sounds like you want to trade in a headache (the Ed Visa process) for a stomachache (bar ownership). You won't be eliminating your current problems & concerns so much as just trading them in for a brand new set of problems & concerns.

[Upnotover]

I would imagine that a bar with rent and utilities of 10-15K/month would hardly warrant tying up a 2M investment and neither will generate 50K/month for your salary. So the bar-owner visa option seems a bit off to me.

[crazygreg44]

As a bar / company set up owner, you will have to employ 4 thai. Don't forget that the minimum wage is 9000 THB per month (for which you might not even find anybody willing to work for!) and that they have all rights as labourers according to Labour Department law. If you fire a person, you will have to pay salary for another 3 consecutive months (or they can sue you), along with the risk that firing people makes them loose face and puts you in a "vulnerable" position.

I don't see what having to pay rent (15 - 20,000 a month) , salaries ( up to 40,000 per month) , utilities, electricity etc (up to 12,000 per month) monthly costs calculated against your yearly 40,000 poop ED Visa has any advantages. And of course your living costs will still be existent, your health insurance needs to be paid et cetera. Added the very very downfall of this business plan is that you might just make any profit at all during the high season and a minus during the low season. I think you are not even aware of what it requires to run a bar. You mentioned you worked in a bar already, if this is what you base all your assumptions to, you should have been able to check their cost/income turnovers records ??

[kweenie123]

your cost for the bar:

staff, licences, rent, keymoney, tax, accountant, lawyer ...... would be far more then what you pay for the ED visa

running a bar will take up a lot of time if you want to make any money at all.

getting decent staff is a major headache

Edited January 18, 2015 by kweenie123