Buying a business in Nong Khai

Hi all posters,

I am planning on purchasing a leasehold business in Nong Khai and would appreciate receiving feedback from fellow members who can give advice on the following,
1. Is there a requirement that a thai national name appear on the lease document if the business is not run under a company.
2. The pitfalls of having a family member operate the business. My son's TW's sister is an ideal person for the position. My son and TW reside in Aus and we intend coming to Nong Khai for 3 months of each year to see that the business is on track.
3. Is there a website link in English that addresses the requirements of the Thai government in relation to taxation, staff employment conditions etc.
4. Any other information that may assist in covering all the bases.

Thanks all,

Trekkertony

I live in Nong Khai and I think buying a business under any name for a Thai relative to run is about the fastest way I can think of squander your money!

I know some guys feel pressure to ''invest'' for the families sake or they feel it is the good son-in-law thing to do,but I have never seen a profitable situation under these circumstances!!!

Even if the intentions of the family member are truly good,very few Thais have any business management skills and even if they do,who will be their customers?Thais give business to their friends and family only!To do otherwise causes a loss of face which is the worst thing to happen to a Thai!If your relative is not from the area where the business is situated,the business is doomed no matter their skills!

If the customer base is going to be falangs,the market is saturated in Nong Khai with only 2 or 3 scratching a living and those are because the falang is there fulltime and has build a small loyal base!The rest come and go with each yearly lease!Of course there are a few that are basic shophouse rentals as a place to live and the Thai/GF try to stay busy,These might last 2 lease agreements,but not often as you see the gal sitting around very bored witn no business!

IMO,you pan to come to Thailand for 3 months a year ''to keep the business on track'' will turn into ''3 months a year to fill the money trough''!

Some other pitfalls are:
Lease difficulties and maintenance of the unowned premises,Boys in Brown,cost of goods and service when known that it is falang financed business!

Harsh Stan.... but probably fair....

Only if ''harsh'' equals honest and straightforward!I have no axe to grind!It will be interesting if anybody has any facts to challenge my assessment of the situation!

BKKSTAN wrote:It will be interesting if anybody has any facts to challenge my assessment of the situation!

I doubt it Stan.
From what I have seen (as I have never attempted it ) it is extremely difficult for a Falang to run a profitable business in Thailand even if he is with it 24/7. I would think 'part time' would make it next to impossible.

BobHelm, I don.t think that is a fair assement, Nong & I ran our business for 8 months, made money after 2 1/2 months and made more when we sold. It all depends on type of business started and the commitment involved. But I must agree with Stan, if your not going to do it yourself, don't do it

eddie

Nong & I ran our business

agree with Stan, if your not going to do it yourself, don't do it

nuff said. agree, you really need to be here at the minimum. does sis have experience in business, and ran a successful business before. competition, licenses, parking/walk up customers. these questions should have already been answered before considering a business. if in sis name and something happens, investment loss, or goes to who, and what guarantees do you have? and, would you do the same in your own country, while on vacation 9 months a year.

if still going to do, only invest what you can afford to lose, and good luck. if food, keep us informed, always looking for new munch spot.

Eddy you don't think ''extremely difficult''was not a fair assessment?

Once in awhile somebody opens up a ''specialty''resturant,it goes good because it is different,has interesting propietors and is sold while it is at its peak to another falang and a profit is made.

As I am sure you will agree,it takes special type of people to make a go of it!And Udon has a bigger falang customer base than Nong Khai!

Eddie, I said extremely difficult, not impossible.
You obviously had a business plan in mind & used it & the resources of Udonmap to run a successful business, howbeit only for 8 months. Then, from memory, staff difficulties persuaded you to sell it.
I still stand by my original point that it is extremely difficult for a Falang in Thailand to run a profitable business, making a profit is only 1 of the problems. Running one from afar is difficult * 10

Perhaps Trekkertony might like to give a bit more insight as to the type of business and the experience of both himself and daughter in law's sister in this field? After all, there are Thais in business who are doing very well.

Trekkertony,
alter Oesterreicher Bub,
komm vorbei bei mir,werd Dir helfen koennen.
www.nobiis-restaurant.com
Try to help this guy from Austria.
Oh my Buddah,will loose again customer
The Farmer

Trekkertony, this site might be worth a visit. But it is a legal site so (to me) makes hard reading...

Thailand Law Forum

If you are still seriously considering this then my advice would be to talk to a Thai lawyer....

Just a quick response to the Farmer, Trekkertony is from Australia not Austria!!!!

Thanks for the responses thus far. My son's sister in law has worked the previous 10 years in the administration side of a manufacturing company in Rayong. The type of business we are seeking is an accommodation business, not necessarily pitching to the falang residents or tourists. Nong Khai has been selected as it appeals in both climate, location, commercial structure and its distance from my son's TW's family ( 300 K ).

I appreciate the advice given and obviously will proceed with extreme caution.

Regards,

Trekkertony

Stan," Exremely Difficult " is more than a fair assessment, I agree with you 100% . BobHelm, you are correct , your memory is still intact