Can foreigners buy hospitality businesses?

[Hal65]

Anyone know if foreigners are allowed to buy hospitality businesses? Or is foreign ownership prohibited under Thai real estate regulations?

[blackcab]

Foreigners are not normally allowed to be registered as a part owner of a hospitality business at all. Remember that in most instances, you can only own 49% of a business in Thailand anyway.

By hospitality, I mean hotels, or the sale of food and beverages as these activities are on list 3 of the restricted business activities under the Foreign Business Act 1999.

It is possible to be registered as a 49% owner of a hospitality business, but you need approval from the BOI. So in reality, that pretty much means no.

[Hal65]

thanks for the information. in checking list 3 on this website I see hotels listed, but not the broader category of hospitality: http://www.boi.go.th/index.php?page=legal_issues_for_investors_01_foreign_business_act

[blackcab]

It says "Sale of food and beverages". What sort of hospitality did you have in mind that doesn't include selling food or beverages?

Edited June 7, 2015 by blackcab

[NeverSure]

There are a number of farangs who own restaurants and some own bars. I have no idea what the law is about prohibited or how they do it. I know a couple of them who are chefs in hotels. We have a member who owns some hotel businesses.

???

[torpedo1970]

There are a number of farangs who own restaurants and some own bars. I have no idea what the law is about prohibited or how they do it. I know a couple of them who are chefs in hotels. We have a member who owns some hotel businesses.

???

usually when you see a Farang owning a bar or business, it is his wife that owns 51% and he owns 49% of the business........

or it is also the more creative way, (not necessary legal), where as the farang by some magic/creative papers and lawyers own 100% it is possible but risky...

[NanLaew]

Buying a property and/or businesses does not automatically confer any degree of ownership when it comes to the foreigner in Thailand.

I don't think 'real estate regulations' have anything to do with the legislation that governs foreign business ownership, partially or otherwise.

[Hal65]

It looks like as a US citizen, I should be able to buy these businesses due to the Amity Treaty exemption. thanks to everyone for the feedback thus far.

[natway09]

Good Luck.

Just ensure you start or buy a clean Co with your lawyer/accountant. You can own 49% of the shares, & the rest to wife, girlfriend,

Secretary of the lawyer (just do not forget her Birthday every year)

I think you get the point

[NickJ]

I think you should never give 51% of your business to just one or two Thais......And never have a wife that owns the majority shares....there are exceptions, like she has worked for her share and is using her money or assets.

Its best to have it spread out.

As for a Treaty company for a restaurant and a start up company. Please do your math. I have opened treaty companies before. They cost more and you need to keep the IRS in the loop.

[GOLDBUGGY]

Foreigners are not normally allowed to be registered as a part owner of a hospitality business at all. Remember that in most instances, you can only own 49% of a business in Thailand anyway.

By hospitality, I mean hotels, or the sale of food and beverages as these activities are on list 3 of the restricted business activities under the Foreign Business Act 1999.

It is possible to be registered as a 49% owner of a hospitality business, but you need approval from the BOI. So in reality, that pretty much means no.

Hilton just opened a new hotel in Pattaya not long ago and Conrad Hilton is not Thai. I don't think Ronald McDonald is either.

If you read further, Section 1.2.1 states that a Foreigner can own a business in List 3 if he applies for a Foreign Business License first. So if you want to operate a Hotel you would need to apply and obtain a license before you could build, buy, or operate.

The success rate of obtaining this license I do not know. But what I do know as many Foreign Companies operating in Thailand under Foreign Ownership.

[Hal65]

Yes I know a friend of a friend in Chiang Mai who got approval for his company through the BOI. That guy said his experience with them was quite positive, as they not only helpful and spoke great English, but they were even looking for ways to write the application to have it approved from the "higher-ups" as they get paid a bonus for every approved foreign company.

I'm more interested in the Pattaya area and not sure how things are different down here.

[Fullstop]

It's hard enough jumping through the hoops just to live and work here ... THERE IS NO WAY I would invest in a business here. I'd be looking at neighbouring countries ...like Vietnam.

[seancbk]

Foreigners are not normally allowed to be registered as a part owner of a hospitality business at all. Remember that in most instances, you can only own 49% of a business in Thailand anyway.

By hospitality, I mean hotels, or the sale of food and beverages as these activities are on list 3 of the restricted business activities under the Foreign Business Act 1999.

It is possible to be registered as a 49% owner of a hospitality business, but you need approval from the BOI. So in reality, that pretty much means no.

Explain all the expats that own bars, restaurants, operate food trucks, make and sell food at the various Farmer's Markets every weekend.

[Scouse123]

It's hard enough jumping through the hoops just to live and work here ... THERE IS NO WAY I would invest in a business here. I'd be looking at neighbouring countries ...like Vietnam.

I have looked at Vietnam and I did have a hospitality businesses in Thailand without any problems at all.That included full hotel, bars, restaurant etc The subject of BOI never came up. I know many foreigners in Thailand with companies that own resorts, guesthouses, hotels, bars and restaurants. Yes, they are set up in the 49%/ 51% companies but have run for a great number of years.

Vietnam looks extremely difficult given the fact they don't really welcome foreigners with open arms for business and if your target audience is foreigners in the hospitality trade then there are no standardised visas for ex pats or retirees to my knowledge. So, if it were bars or restaurants it may be a problem.

A five year special business visa may be obtained after ' jumping through hoops! ' but the common or garden foreigner does not get this and must look to border runs every three months unless you can tell me different.

I haven't looked at the visa based on marraige actually as I have no interest in that area,....... once is enough!!

I think both Thailand and Cambodia are easier than Vietnam, even Laos I think, is easier.

If you know different, I would love to hear, no sarcasm intended, genuinely very interested. I also heard recently from a good friend which board members may be able to assist on this topic, and that was to forget the Philippines, as all hospitality in the main resorts are more or less, mafia controlled. They say the black economy and dark forces are a very real element over there.

I think if you set up your company right in Thailand or Cambodia with a competent lawyer, pay your dues ( or at least make an effort) obtain the corect visa and work permit without trying to operate under the radar, you can be legal and make a living in either country unless you are leasing/renting in which case you will get screwed eventually.

Edited June 8, 2015 by Scouse123

[Hal65]

I think if you set up your company right in Thailand or Cambodia with a competent lawyer, pay your dues ( or at least make an effort) obtain the corect visa and work permit without trying to operate under the radar, you can be legal and make a living in either country unless you are leasing/renting in which case you will get screwed eventually.

So they really watch out for foreign real estate investors taking advantage of the 49/51 company split, do they? Good to know, that was another investment option I had under consideration.

[konying]

Foreigners are not normally allowed to be registered as a part owner of a hospitality business at all. Remember that in most instances, you can only own 49% of a business in Thailand anyway.

By hospitality, I mean hotels, or the sale of food and beverages as these activities are on list 3 of the restricted business activities under the Foreign Business Act 1999.

It is possible to be registered as a 49% owner of a hospitality business, but you need approval from the BOI. So in reality, that pretty much means no.

Not too sure where you get your info from which is soo wrong.

Same ownership rules apply to any business and no shortage of foreigners who own hotels, bars, hotels, clubs etc and none, including myself needed any approval from BOI.

The prohibition of foreigners applies to working I some industries, not to owning it, the standard 49%

[abrahamzvi]

Foreigners are not normally allowed to be registered as a part owner of a hospitality business at all. Remember that in most instances, you can only own 49% of a business in Thailand anyway.

By hospitality, I mean hotels, or the sale of food and beverages as these activities are on list 3 of the restricted business activities under the Foreign Business Act 1999.

It is possible to be registered as a 49% owner of a hospitality business, but you need approval from the BOI. So in reality, that pretty much means no.

Hilton just opened a new hotel in Pattaya not long ago and Conrad Hilton is not Thai. I don't think Ronald McDonald is either.

If you read further, Section 1.2.1 states that a Foreigner can own a business in List 3 if he applies for a Foreign Business License first. So if you want to operate a Hotel you would need to apply and obtain a license before you could build, buy, or operate.

The success rate of obtaining this license I do not know. But what I do know as many Foreign Companies operating in Thailand under Foreign Ownership.

I can hardly comment about bars and restaurants owned/operated by non Thais, but as far as such hotels as Hilton, Conrad, Sheraton etc. are concerned, they are usually owned by Thais and operated under a management agreement with such international hotel operators as Hlton, Starwood group (sheraton) etc. As far as McDonalds are concerned, again they are fully owned by a Thai company and operated under licence by McDonald's international

[sir charles IV]

Out with the truth already. Been visiting pattaya and now wanting to buy a business and have no idea how? If you knew how many people have tried and failed you'd run as fast as you can. Think with the big head buddy not the little fella.

[blackcab]

Foreigners are not normally allowed to be registered as a part owner of a hospitality business at all. Remember that in most instances, you can only own 49% of a business in Thailand anyway.

By hospitality, I mean hotels, or the sale of food and beverages as these activities are on list 3 of the restricted business activities under the Foreign Business Act 1999.

It is possible to be registered as a 49% owner of a hospitality business, but you need approval from the BOI. So in reality, that pretty much means no.

Explain all the expats that own bars, restaurants, operate food trucks, make and sell food at the various Farmer's Markets every weekend.

Perhaps you should ask them to explain their actions, not me. I simply pointed out what the law says.

[blackcab]

Foreigners are not normally allowed to be registered as a part owner of a hospitality business at all. Remember that in most instances, you can only own 49% of a business in Thailand anyway.

By hospitality, I mean hotels, or the sale of food and beverages as these activities are on list 3 of the restricted business activities under the Foreign Business Act 1999.

It is possible to be registered as a 49% owner of a hospitality business, but you need approval from the BOI. So in reality, that pretty much means no.

Not too sure where you get your info from which is soo wrong.

Same ownership rules apply to any business and no shortage of foreigners who own hotels, bars, hotels, clubs etc and none, including myself needed any approval from BOI.

The prohibition of foreigners applies to working I some industries, not to owning it, the standard 49%

You are completely wrong. The same ownership rules do not apply to any business in Thailand. Read this link - it lists categories of businesses that foreigners are not allowed to own, and categories of business that foreigners need permission to own:

http://www.boi.go.th/index.php?page=legal_issues_for_investors_01_foreign_business_act

You are also incorrect about the prohibition of foreigners applying to working in some industries, not to owning it.

I work in a List 1 industry - specifically I work for a business whose main objective is land sales. That objective is very clearly written into the company registration. As you can see from the link, no foreigners are allowed to own a business conducting land sales, but I can assure you a foreigner can get a work permit to work for such a company.

Edited June 8, 2015 by blackcab

[konying]

Foreigners are not normally allowed to be registered as a part owner of a hospitality business at all. Remember that in most instances, you can only own 49% of a business in Thailand anyway.

By hospitality, I mean hotels, or the sale of food and beverages as these activities are on list 3 of the restricted business activities under the Foreign Business Act 1999.

It is possible to be registered as a 49% owner of a hospitality business, but you need approval from the BOI. So in reality, that pretty much means no.

Not too sure where you get your info from which is soo wrong.

Same ownership rules apply to any business and no shortage of foreigners who own hotels, bars, hotels, clubs etc and none, including myself needed any approval from BOI.

The prohibition of foreigners applies to working I some industries, not to owning it, the standard 49%

You are completely wrong. The same ownership rules do not apply to any business in Thailand. Read this link - it lists categories of businesses that foreigners are not allowed to own, and categories of business that foreigners need permission to own:

http://www.boi.go.th/index.php?page=legal_issues_for_investors_01_foreign_business_act

You are also incorrect about the prohibition of foreigners applying to working in some industries, not to owning it.

I work in a List 1 industry - specifically I work for a business whose main objective is land sales. That objective is very clearly written into the company registration. As you can see from the link, no foreigners are allowed to own a business conducting land sales, but I can assure you a foreigner can get a work permit to work for such a company.

May I suggest you visit Thailand instead of posting utter rubbish.

And when I say utter rubbish, you really are posting $hit.

You work for a company where foreigners are not allowed to work? And posting at 1:30am on a working day?

What is there more to say for your credibility or knowledge of Thai law?!

Edited June 8, 2015 by konying

[blackcab]

Foreigners are not normally allowed to be registered as a part owner of a hospitality business at all. Remember that in most instances, you can only own 49% of a business in Thailand anyway.

By hospitality, I mean hotels, or the sale of food and beverages as these activities are on list 3 of the restricted business activities under the Foreign Business Act 1999.

It is possible to be registered as a 49% owner of a hospitality business, but you need approval from the BOI. So in reality, that pretty much means no.

Not too sure where you get your info from which is soo wrong.

Same ownership rules apply to any business and no shortage of foreigners who own hotels, bars, hotels, clubs etc and none, including myself needed any approval from BOI.

The prohibition of foreigners applies to working I some industries, not to owning it, the standard 49%

You are completely wrong. The same ownership rules do not apply to any business in Thailand. Read this link - it lists categories of businesses that foreigners are not allowed to own, and categories of business that foreigners need permission to own:

http://www.boi.go.th/index.php?page=legal_issues_for_investors_01_foreign_business_act

You are also incorrect about the prohibition of foreigners applying to working in some industries, not to owning it.

I work in a List 1 industry - specifically I work for a business whose main objective is land sales. That objective is very clearly written into the company registration. As you can see from the link, no foreigners are allowed to own a business conducting land sales, but I can assure you a foreigner can get a work permit to work for such a company.

May I suggest you visit Thailand instead of posting utter rubbish.

And when I say utter rubbish, you really are posting $hit.

You work for a company where foreigners are not allowed to work? And posting at 1:30am on a working day?

What is there more to say for your credibility or knowledge of Thai law?!

I guess this is why people slate forums such as this. You assert you are correct, but you offer no evidence. I have posted a link to the law, which you clearly haven't read, and you still maintain I'm wrong.

The only way you're brain can reconcile the irreconcilable (because you won't admit you are wrong) is to say I'm not even in Thailand and I choose not to go to bed early.

If you're so certain foreigners cannot be employed by a list 1 company, have a look at the executive management of Raimon Land. It's on the internet. How do you explain the foreigners employed there?

[konying]

I guess this is why people slate forums such as this. You assert you are correct, but you offer no evidence. I have posted a link to the law, which you clearly haven't read, and you still maintain I'm wrong.

The only way you're brain can reconcile the irreconcilable (because you won't admit you are wrong) is to say I'm not even in Thailand and I choose not to go to bed early.

If you're so certain foreigners cannot be employed by a list 1 company, have a look at the executive management of Raimon Land. It's on the internet. How do you explain the foreigners employed there?

Perfect example why some people should never post or at least have enough capacity to realize their nonsense posts misinform people

BOI is only ONE way to set up a business, it is NOT the only way to set up a business.

Sorry will not be giving you FREE education on how law and business works in Thailand, after all you work for a company where foreigners are NOT allowed :

[lostoday]

There are a number of farangs who own restaurants and some own bars. I have no idea what the law is about prohibited or how they do it. I know a couple of them who are chefs in hotels. We have a member who owns some hotel businesses.

???

Being an American I'm surprised you didn't know, The Amity treaty allows for American citizens and businesses incorporated in the U.S, or in Thailand to maintain a majority shareholding or to wholly own their company in Thailand, and thereby engage in business on the same basis as would a Thai national.

Under the Treaty, Thailand restricts American investment only in the following fields of business:

Communications

Transportation

Fiduciary functions

Banking involving depository functions

Exploitation of land and natural resources

Owning land; and

Domestic trade in agricultural products.

[blackcab]

I guess this is why people slate forums such as this. You assert you are correct, but you offer no evidence. I have posted a link to the law, which you clearly haven't read, and you still maintain I'm wrong.

The only way you're brain can reconcile the irreconcilable (because you won't admit you are wrong) is to say I'm not even in Thailand and I choose not to go to bed early.

If you're so certain foreigners cannot be employed by a list 1 company, have a look at the executive management of Raimon Land. It's on the internet. How do you explain the foreigners employed there?

Perfect example why some people should never post or at least have enough capacity to realize their nonsense posts misinform people

BOI is only ONE way to set up a business, it is NOT the only way to set up a business.

Sorry will not be giving you FREE education on how law and business works in Thailand, after all you work for a company where foreigners are NOT allowed :

Where, other than in your brain, does it state that foreigners cannot work for a list 1 company?

I guarantee you will not be able to provide one solid piece of proof to present in this thread. Instead, all you will do is troll the thread some more.

[konying]

I guess this is why people slate forums such as this. You assert you are correct, but you offer no evidence. I have posted a link to the law, which you clearly haven't read, and you still maintain I'm wrong.

The only way you're brain can reconcile the irreconcilable (because you won't admit you are wrong) is to say I'm not even in Thailand and I choose not to go to bed early.

If you're so certain foreigners cannot be employed by a list 1 company, have a look at the executive management of Raimon Land. It's on the internet. How do you explain the foreigners employed there?

Perfect example why some people should never post or at least have enough capacity to realize their nonsense posts misinform people

BOI is only ONE way to set up a business, it is NOT the only way to set up a business.

Sorry will not be giving you FREE education on how law and business works in Thailand, after all you work for a company where foreigners are NOT allowed :

Where, other than in your brain, does it state that foreigners cannot work for a list 1 company?

I guarantee you will not be able to provide one solid piece of proof to present in this thread. Instead, all you will do is troll the thread some more.

Trouble reading? read your own posts,

As for trolling, you would be taking the cake, with your profound knowledge

Might be time to quit, or at least gain some knowledge.

[blackcab]

This is my last attempt. If you cannot answer the question I'll leave you alone to play with yourself. I've been more than gracious in the face of your complete idiocy.

So...

Where does it state that a foreigner cannot work in a list 1 company?

I'll help you. It isn't stated anywhere. Foreigners can work in list 1 companies. I work in a list 1 company, and other foreigners do too. The foreigners I know who work in list 1 companies all have work permits and extensions of stay. Many of us are married to Thai nationals and have Thai children.

You have no proof that foreigners cannot work in a list 1 company. You are unable to post any relevant links. That's the reality of the situation.

All you can, and will do, is waffle.

[konying]

This is my last attempt. If you cannot answer the question I'll leave you alone to play with yourself. I've been more than gracious in the face of your complete idiocy.

So...

Where does it state that a foreigner cannot work in a list 1 company?

I'll help you. It isn't stated anywhere. Foreigners can work in list 1 companies. I work in a list 1 company, and other foreigners do too. The foreigners I know who work in list 1 companies all have work permits and extensions of stay. Many of us are married to Thai nationals and have Thai children.

You have no proof that foreigners cannot work in a list 1 company. You are unable to post any relevant links. That's the reality of the situation.

All you can, and will do, is waffle.

What the heck are you driveling on about?

Get a grip or cut back on the cheap beers.

OP question, can a foreigner buy hospitality business? Answer yes,

Not your drivel about BOI and all the rest of the nonsense.

Can a foreigners work in any field? No he can not.

Now, go away and stop trolling

[innerspace]

Can a foreigner own a minor share of a hospitality business? Yes.

A minor share with majority voting rights? Yes.

A majority share with boi approval? Yes.

Work in certain roles, eg. Management or marketing? Yes.

Work under a "hospitality" role (without prior mentioned or similar exemptions) (eg. waiter, reception, bellboy) without Thai citizenship? No, not even with boi or work permit.

Work some restricted roles with creative title and work permit (international customer relations=reception. Restaurant coordinator=waiter). Yes.

Most responses in this thread have been correct but focused on a single view not the full picture....