Sunbelt Asia Weekly Column
4 May 2018
Judges fee for court procedure?
Question:
Please understand I am getting my only information from my wife whose legal terminology may not be correct. My wife’s family (rice farmers) have a real estate issue in Udon Thani. The issue is legal ownership. Apparently after years of incomplete documentation – and in some part possibly fraudulent documentation – they have engaged some lawyers from Bangkok to deal with the legal ownership issues. As I understand the case must go to court (even though the issues are unopposed) to properly register the property. My question is that the family is required to pay, in addition to legal fees, a fee they call a judge’s fee – apparently based on land value. Is such a fee normal and correct?
Sunbelt Asia Legal Advisors responds:
Even though it is unchallenged it is a bureaucratic procedure that will still require your inlaws to petition the court to obtain the formal ruling. In normal civil lawsuits there is usually a 2% fee of the claim but for Consumer Protection and Labour Courts they do collect a small administrative fee. This may be that although other courts do not charge this fee.
The difference between usufruct and 30 year lease
Question:
My Thai wife (on our behalf!) is soon to purchase a property with land in Thailand. We wish to set up a Usufruct for my benefit. How flexible can a Usufruct be made? I understand that 30 years is typical but could a Usufruct be made for a longer time period? With rights of renewal built in? What if I died before the Usufruct time expiry would my Western based family be able to use the remainder of the time? What about a Usufruct for my lifetime? Could this be set up too?
Sunbelt Asia Legal Advisors responds:
A lease is limited to 30 years only, while a usufruct can be registered for a lifetime of the Usufructuary. If the Usufructuary passes away, the rights given by the Land Owner to the Usufructuary will not be inherited by the heirs of the Usufructuary. It is also possible to register the usufruct for a 30 year plus option to renew but the land owner could refuse to renew and you would have to file a lawsuit for breach of agreement. In theory, there is no restriction for a foreigner to be listed as an Usufructuary, but in practice the Officer at the land office may refuse to immediately register a usufruct on a new acquired property. They (at their discretion) recommend the parties to put the registration on hold. Sunbelt Asia Legal Advisors has extensive experience in registering both usufructs and leases so that they are fully legal and protect your rights.
The Cabinet agreed to retroactively extend the tax incentive measure to encourage business operators to register themselves as juristic persons which expired January 1 to December 31, 2018. Approval was given to the extension of the tax incentive measure which aims to have ordinary persons, non-juristic partnerships, and groups of persons to register as juristic persons and entities as part of the government’s goal to bring more business operatives into the tax system. It offers new juristic persons and entities exemptions of income tax and value-added tax on transferred assets and sales of products as well as tax on legal transactions. New juristic persons and entities can deduct expenses like accounting and auditing costs from income tax payment for five consecutive cycles.
The Consumer Confidence Index of the University of the Thai Chamber of Commerce (UTCC) rose to 80.9 in April in its second straight month, reaching a 40 month high boosted by strong tourism and exports. Global trade tensions and low farm prices remain a concern and consumers still feel the economic recovery is not broad based. The daily minimum wage was raised in April which may contribute to future confidence and the Finance Ministry predicts GDP to grow to 4.2 percent this year from 3.9 percent last year, the fastest pace in 5 years due to strong exports and tourism.
The Department of Land Transportation and the Navy have launched three bus routes linking U-Tapao International Airport with nearby Chonburi, Rayong, and Trat. Service to Trat includes a stop in Chanthaburi while the Chonburi route stops in Pattaya and Sri Racha. The routes are operated by private transport firms using air-conditioned buses with GPS tracking systems and another system to monitor their speed. The Department of Land Transportation plans on introducing new bus routes to all 34 airports across the country. Japan has agreed to extend soft loans to finance the planned new high speed extension of the Airport rail line linking U-Tapao International Airport with Suvarnabhumi and Don Mueang International Airports. The bidding process is expected to begin this month with the winner announced in November.
The government is working to expand 29 airports across the country over the next ten years as part of the bid to boost tourism to secondary provinces by linking small cities with Bangkok, other cities in Thailand and across South East Asia. Krabi, Khon Kaen, Surat Thani, Ubon Ratchathani and Phitsanulok are being targeted for expansion so that they will be able to accommodate larger aircraft like the Boeing 747 while airports in Lampang, Hua Hin, and Ranong will be renovated to accommodate medium sized aircraft. The airport in Mae Sot in Tak is already undergoing expansion due to be completed in 2019 and an airport in Yala is under construction.
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Please feel free to contact us if you are in Thailand on (+66) 02-662-7004 to discuss any of these listings.
Villas and land prime for resort development in Cha-am
Set in the beautiful district of Cha-Am and just a short drive from the beach, this business offers a unique opportunity for a buyer interested in getting into the resort and development business in a tropical paradise and owning 25 rai of chanote title land as well. There are 9 beautifully furnished villas, each offering two rooms for rent as resort style accommodation. The resort can cater for up to 40 people at a time. The 9 villas offer beautiful views of the mountains, lake and rice paddies nearby. With such a large area, there is plenty of room to grow this business, either with more resort rooms or more villas. The resort has a large pool set in beautifully landscaped gardens and a lovely lake.
There are 15 employees with a total monthly payroll of 260,000 baht. Sales have grown continuously in the first four years of business as the place becomes more well-known, reaching 24 million baht in 2017 with a gross profit in excess of 10 million baht.
Twenty five rai of freehold land is included in the sale, along with a 240sqm meter clubhouse, dining and drinking area with 40 covers, and 14 hardwood salas, as well as staff quarters for 4 people.
The owner is looking to sell due to personal reasons
ASKING PRICE: 100 million negotiable
(BKK15829)
BOI tech business allows for 100% foreign ownership
The BOI promoted business allows for 100 percent foreign ownership and falls within the guidelines and goals of the government’s bid to progress the economy to higher tech. This business provides cloud services to companies in Thailand and currently has 3 active partnerships and active reseller agreements: Microsoft, Sophos and Acronis, offering managed cloud services and cloud powered IT solutions. The company offers 24/7 management of cloud services and offers services such as Windows and Linux Cloud servers, Cloud back up, website and app hosting and Microsoft Azure. As the company enjoys BOI incentives, profit and dividends are not taxed so it can be beneficial to a local investor to change to local ownership.
In Thailand the spending on public cloud services in 2017 was estimated at 7.73 billion baht according to global research firm IDC. Many companies are moving to the cloud and the Bank of Thailand recently announced that the financial sector can offer financial services on the cloud. Research firm IDC predicts a further growth of the Cloud Services market by 25% yearly on average.
The company has a dedicated team of well-trained IT professionals with certified and senior engineers offering technical support and the company also has an online lead capturing and sales strategy for selling recurring packages. The company conservatively predicts total net profit over 3 years to reach 100 million baht.
The owner has more than 10 years of experience in IT, Cloud, Hosting and Online Marketing. An extensive knowledge and experience that can be transferred to a partner or new owner.
The owner is interested in two options; a joint venture in which the partner takes shares in the Thai company and the owner stays on as the General Manager or a full takeover with 100 percent ownership by the buyer.
ASKING PRICE: 50 million baht
(BKK15827)
Healthy food restaurant in popular community mall
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This healthy Thai – Western fusion food restaurant offers delicious organic food in a popular Sukhumvit community mall. The restaurant has earned good reviews on Trip Advisor for its healthy menus and a loyal repeat business. With an industrial chic restaurant and in a popular community mall that hosts many weekend events and is a big draw, the rent on the 97 sqm space is 122,220 baht.
The business has 8 full-time employees with monthly wages of 140,000 baht. Sales have reached 7.2 million baht with a net profit of 700,000 baht. The owner invested 4.5 million baht in fitting up the business but is moving to another province so has set a competitive price to sell it quickly.
ASKING PRICE: 3.9 million baht
(BKK15825
Furniture factory in Bangkok includes land
This factory makes massage tables and other furniture in Bangkok and sells their furniture to hotels, resorts, and spas overseas and in Thailand. In business since 2000 the company has built up a good reputation for quality items and a good client list.
The business has 11 full time and 3 part time staff with a total monthly payroll of 145,000 baht. Sales are around 8-10 million baht a year with a profit of around 40 percent. The business owns the land which is included in the sale. The 300 sqw property holds the factory and a building with a total of 560 sqm. The price of land and rents in Bangkok continue to so this is a great opportunity to own your own property.
The owner is retiring and so wishes to sell the business as well as the land and property.
ASKING PRICE: 35 million baht
(BKK15823)
Unique concept restaurant in top Sukhumvit location
In a great Sukhumvit location, this restaurant offers an unusual setting for diners; a true chef’s table with diners who come for the excellent food and unique atmosphere. The restaurant has earned rave reviews for its top notch menus and has been covered by several Thai foodie magazines. Diners are required to make reservations in advance for this exclusive venue.
The rent on this 60 sqm space is only 30,000 baht a month, a steal for this part of Bangkok. The business has a parking lot as well, a rarity in this town, sharing the ten-car car park with a coffee shop next door.
There are three employees with wages of 59,000 baht and month and sales reach 800,000-1,000,000 baht per month with a monthly net profit of 400,000 baht.
The owner is looking to do a bigger project and so is looking to sell.
ASKING PRICE: 1.8 million baht
(BKK15821)
Well-known events website and brand
A well-known website and brand is up for sale offering the aspiring event organizer a great entry into the networking business. The sale includes the website, as well as all social media sites, meetups, and a full mailing list and database of attendees, potential events and more. The brand is quite well known in Bangkok and around Thailand for event organization.
Also included in the sale are several event brands and logos along with partnerships with events in Singapore and around Thailand.
The owners are also providing three months of assistance for the buyer in event organizing, strategy, marketing promotion for the first three months of business.
ASKING PRICE: 5 million baht / US$ 150,000
(BKK15799)
Large Asoke area restaurant
Just off Asoke Montri Road and near Terminal 21, Health Land and many office buildings and hotels this restaurant is on the ground floor of a hotel and has a booming lunch trade and is very popular with the locals in the area as well as tourists.
The restaurant can seat 85 people comfortably and a classically decorated private ventilated cigar room or VIP room. There is 7 full time staff with excellent team work, and food and beverage contracts with the hotel in the same building or provide breakfast service and room service offering a guaranteed income every month.
There is a cool room which stores wine and beer kegs, new kitchen equipment including charcoal grill, wok stove, oven, deep fryers, cooker, refrigerators and freezers included in the sale price. Rent on the 280 sqm space runs 155,000 a month with no key money. The lease runs until 2022 with a fixed rate. All construction maintenance is supplied and paid for by the hotel above. The website, email, Instagram, Facebook page (15k followers) are all included in the sale.
Total income is around 400,000 – 500,000 baht a month but can go higher with an owner with more time to spare for the business. The owner doesn’t have time to manage the business and so is looking to sell the business.
ASKING PRICE: 3,600,000 million baht
(BKK15802)
Design studio seeks investors
A top-quality design studio is seeking investors to help grow the company. Specializing in the design of lighting, acoustics, audio-visual, IT and security systems, this design consultancy has clients in Bangkok, South East Asia and the Middle East including several large projects including a contract valued at over 40 million baht. The owner of the business is seeking either a partner to grow the company or can sell outright to the right buyer.
The business has offices in central Bangkok with a monthly rent of 100,000 baht for the 100sqm space and has a highly qualified staff of 20 full time employees with a total monthly payroll of 1.2 million baht a month. The company has been in business for six years and has earned a good reputation for high quality lighting and AV designs, as well as security systems. The company is interested in opening new markets and offering new services.
There are three options for investment for joint venture:
ASKING PRICE: 25% for 400,000 USD
49% for 800,000 USD
51% for 1,200,000 USD
(BKK15814)
