Advice on starting a business in Pattaya

[@RN1E]

Hi all,

 

I am looking for some advice . 2 friends and I are looking to start a business, and a new life in Thailand. Its very brief talk at the minute so please dont slate me if you know things already which i am unaware of, and i know many people want to do this but i would prefer advice rather than just someone laying into me.

 

We were thinking maybe a bar or guesthouse. We are all qualified in different things, architecture, structural Engineer and Gas fitter/ plumbing. So we have something to fall back on if things dont go to plan . We dont have any tie's in England and now seems like the perfect time to do it.

 

This is about as brief as it is at the moment so any form of help is greatly appreciated. I am aware of work permits, visa's etc but more detail would be nice if someone could share also.

 

Many thanks.

 

@RN1E (Paul)

[joekicker]

Your post is pretty naive. You don't LEGALLY have "anything to fall back on" as you will be unable to work legally at any of those professions unless someone hires you which is barely a possibility.

 

You seem unaware you have to have Thai partners in any actual business you do.

 

You're not starting at the beginning at all. The only advice is you have to do a LOT more basic research before you even dream of opening a restaurant, and probably on-site research.

Edited July 21, 2008 by joekicker

[Greg_B]

Best to retire here, as JK is 100% correct, you can't be employed at your own place, not a legal thing in Thailand.

 

Better look for a Thai business partner

[bigmick]

just my advice ;;; why not spend some time living here first to see if you really do like it , its a lot different living here than just comeing for holidays

[hybrid]

ahh .. i can smell the negative advice from here

so i'll skip the crap about it won't work, it won't make money, you'll lose it all etc etc

 

you can own a bar , or guesthouse, or any buisness you want. i don't know why people say you cannot.

the negative brigade say the same about houses , that you cannot own your own house here !

 

you cannot though work in that business if the role is a job a thai person can do.

which means in a guesthouse or bar your role is to show your thai staff what to do. not do it yourself.

 

if you are caught serving drinks, taking money, giving someone a key to a room or in fact pretty much anything your in trouble. even technicly mixing with the punters in a role of owner is a breach.

on saying all that though everywehre you go you will see farangs who are doing things they should not do.

so just be aware of the rules. and what you should not be caught doing.

 

i think for every 4 or 5 thai staff you have on payroll you can get 1 farang work permit. however catch 22 agian the work permit has to be for a job a thai cannot do and is approved for farangs.

 

so if you like. you will be a hospitaly consultant in your own bar/guesthouse.

you do not have to put it all in a thai partners name. just see a good accoutant here, most bm's who really live here will be able to recomend one. smart shareholding is all that is needed.

 

the only good advise is donlt invest more than you afford to lose.

ensure you have plenty of money as backup as you will need it.

don't set a silly target that the 3 of you will draw 1000's of pounds from the place profit each month. you 1st target is should be just to try and make it pays its own upkeep without drawing a penny. then if you are lucky it may make enough to buy your food.

the drawback you have is anything you do make is a 3 way split it seems. most small places only make ends meet. and at best pay for food and drink for the owner.

 

don't forget either that if your renting then you have that lovely thing every 3 years or so called key money which will on average double your monthly rent if you include it in your budget.

 

if it all still sounds financialy viable then your a brave man.

you have not said the size of the venture your planning, normally here it seems you have to gamble a lot to make a little.

 

you could always buy a bar guesthosue on soi 6 theres one for sale on my books at 2 million baht to take over the lease + monthly rent .. lol ,, at least then your not far from the action

[pilotman]

DON'T!!!!!!

[chodeekaa]

i was talking to a British guy and his Thai wife in a bar last week, he lives about 100 miles north of BKK, after finishing work due to health he moved over 5 years ago, speaks fluent Thai and has a haulage business with 3 wagons, he is making a decent profit despite having a loan on the business which should be paid off in 1 year

his trade was plasterer/tiler, but some how got into haulage

 

when people think about moving to LOS most think of buying a bar/restaurant/guesthouse but there are more opportunities out there, the only problem is finding these opportunities and knowing how to run them

[joekicker]

i was talking to a British guy and his Thai wife

 

OP, note the above. This is the very least requirement to get into business in Thailand. You need help and guidance - a wife, a lawyer, a partner... something.

[hybrid]

OP, note the above. This is the very least requirement to get into business in Thailand. You need help and guidance - a wife, a lawyer, a partner... something.

agreed.. life & business is soooo much easier if you have a thai involved who you THINK you can trust.

it opens many doors that you cannot do alone. without it expect to pay more for everything and have every man and his dog trying to rob you blind

[LordFlash]

Here's what I did.

 

1) Buy a company. It has to be registered with 2 million Baht capital but doesn't have to actually show that money in a bank account.

 

2) You will need Thai shareholders. These can be spouses, relatives or friends of your lawyer. They probably won't even exist.

 

3) When you have your company registered, you can then apply for your non- imm B multi entry visa

 

4) once you are here - register the company address

 

5) Apply for your work permit. You must employ 4 Thais for every foreign WP. Again, these people may or may not exist BUT the labour dept do sometimes check your premises.

 

6) Your job is to be something such as a Foreign liason/consultant

 

7) During all this, which can take 3 months. You will be establishing your business but I would advise against being seen to actually do any work.

 

8) You will have to pay tax on a 50k monthly salary for every WP and tax and social for all your employees. You will also have to pay company tax every 6 months.

 

Its hard going and you will be given all sorts of conflicting advice. GET YOURSELF A GOOD LAWYER AND ACCOUNTANT who is either foreign or speaks excellent English. DO NOT trust any one piece of advice (Even mine!). Always double and triple check with numerous sources.

The only way you will learn is when you have been here a while and made your own mistakes.

 

It can be done but you must be prepared for many frustrations and quite a bit of cost.

 

Good luck and take it slow.

 

Cheers

LF

[BigDUSA]

I know about a small guest house for sale on 2nd Road near soi 6. It has eight rooms that were renovated within the last two years. It's been in business for about six or seven years and has a well established repeat business. Lot of time left on the current lease. The owners name is Peter and you can contact him at:

 

www.skytopcenterpattaya.com

[@RN1E]

You're not starting at the beginning at all. The only advice is you have to do a LOT more basic research before you even dream of opening a restaurant, and probably on-site research.

 

 

That is what i am doing right now, and this is part of it

 

In my original post i tried to make it clear how brief this idea was, so that people like you wouldn't be so quick to jump in and tear me apart...

 

 

To everyone else that contributed also, thank you very much, some good information!

[MM]

I know about a small guest house for sale on 2nd Road near soi 6. It has eight rooms that were renovated within the last two years. It's been in business for about six or seven years and has a well established repeat business. Lot of time left on the current lease. The owners name is Peter and you can contact him at:

 

www.skytopcenterpattaya.com

 

Anyone reading this would do well to do a search on SKYTOP or SKYSLOPS on this site to get a more balanced view of this establishment...and the value of the proposed business for sale.