Sunbelt Asia Weekly Column
6 July 2018
The Thai government announced several major changes in how it views work and deal with work permits for foreigners in its second Emergency Decree on Foreign Employment Management BE2561 (ED2) issued on March 28, 2018. Sunbelt Asia founder and owner Greg Lange points out that there are some very important changes in the new decree that will make it easier for foreigners coming to Thailand to work for a short period of time, as well as reduce fines and penalties for some violations.
The new ED2 has redefined work to “performing any profession, whether or not there is an employer, excluding business operations of a foreign business license’s holder under the Foreign Business Act” which is more focused and relevant compared to the previous definition of “exerting one’s physical energy or employing one’s knowledge to perform a profession or perform work, whether or not for wages or other benefits”. The new decree also allows for application for a work permit to be submitted electronically from within Thailand or outside the country.
The ED2 has removed the requirements for a work permit for those entering the country occasionally to “organize or attend meetings, conferences, seminars, art exhibitions, or other activities to be prescribed by the Cabinet” as well as those entering the country for 15 days for urgent and necessary work. Those entering for that purpose do need to inform the Department of Employment upon arrival and may extend it a further 15 days if necessary.
Additionally, representative management of a company holding a foreign business license under the foreign business license law of Thailand no longer need work permits. The new SMART visa requirements were added to the Emergency Decree, notably that investors and foreign experts who have applied for the SMART visa do not need work permits.
A new requirement for employers and employees is that both must notify the department of the new employer/employee, place of work, and nature of work within 15 days of the employment date and notify the department every time the employer is changed. The fine for employer and employee failing to notify the department is up 20,000 baht. Those companies who have already employed foreigners with a valid work permit before the implementation date of March 28 should have notified the department within 60 days.
A foreigner who enters to work on an urgent and necessary basis without notifying the department faces a fine up to 50,000 baht while the penalty for working without a work permit or working outside the scope of the work permit has been reduced to between 5,000 to 50,000 baht; after the fine is paid the foreigner will be repatriated. Previously, the foreigner faced fines up to 100,000 baht and 5 years in prison. The penalty for the employer however, is from 10,000 baht to 100,000 baht per foreigner and should the employer repeat the offense can be fined from 50,000 to 200,000 baht, as well as face 1 year in prison, and be prohibited from employing foreigners for a period of 3 years from the date of the final court judgement.
The government has issued a grace period until August 31, 2018 on penalties for those working without a work permit or outside the scope of their work permit, for employers who have employed a foreigner without a work permit or working outside the scope of their permit, and for those who have entered the country for urgent and necessary work but not yet informed the Department of Employment.
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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.
Thonglor area hostel in price reduction
The price on this chic and modern hostel has been dropped for a quick sale. The hostel has five dorm rooms and two VIP bedrooms with en suite bathrooms in the popular Thong Lor neighborhood. The business also has a bar and restaurant on the ground floor and has a total of 41 beds and has earned reviews on Trip Advisor and booking sites.
The hostel has a three-year lease and a monthly rent of 84,000 baht. Sales reach around 2.5 million baht a year with profits at about half a million. There are five staff members with a total monthly payroll of 40,000 baht. The owner invested more than 9 million baht in fitting out the building but is looking to sell quickly as he has another business to work on.
ASKING PRICE: 3.5 million baht
(BKK15822)
Hair and nail salon on Wireless road drops sale price for a quick sale
The owner of this long-established hair salon offering waxing and a nail spa on Wireless Road is keen to sell and has lowered the price for a quick sale. Wireless Road is often known as Embassy row due to the many embassies on the street but is also home to many office buildings and hotels. The salon has been in business for 12 years and has built up a great reputation and many repeat clients.
Rent on the 142 sqm space is 168,000 baht a month and there are 7 employees that earn about 200,000 baht per month in commissions. All of the staff are long-term, well trained technicians. Sales last year is 7,405,242 and net profit 1,628,301. The equipment and furniture are good quality and included in the sale.
ASKING PRICE: 3.5 million baht
(BKK15816)
Executive apartment building and land in Ratchada
A rare gem in Bangkok, this executive apartment building for sale is located in the heart of Ratchada and only a ten-minute walk from the MRT Station and also includes not just ownership of the building but of the 200sqw land the building is set on.
The apartments have high occupancy reaching 98 percent all year round. There is a gym and elevator and a regular steady clientele of residents that work in nearby offices. Sales last year reached 12 million baht with a profit of 8 million baht.
The value of the land and building alone are over 80 million baht. The owner is moving overseas and is forced to sell this profitable business.
ASKING PRICE: 210 million baht
(BKK15760)
Specialist software business seeks investors for expansion
This leading specialist software provider is seeking investors to expand the business. Providing logistics and supply chain businesses with key software in Thailand, India, Malaysia and Indonesia for the past 12 years, the company is looking to expand further into Thailand and a total of eight countries and is seeking a committed investor to fund the centralized team that will manage the expansion The company already has joint venture partners in every country show share 49% – 50% in those countries. By the end of 2017 the company should be operation in 8 – 10 countries.
They are seeking a 49% investor for 122.5 million baht
ASKING PRICE: 122.5 million baht for 49% shares
(BKK15742)
Long-running Pattaya hotel on 2nd road
The owner of this long-running hotel and restaurant has lowered the price as he is moving to Bangkok and is seeking a quick sale. The hotel was fully renovated just this year for a new, modern look. Located on Pattaya 2nd road, the hotel now has a up to date, modern kitchen, bar, and restaurant with classic decor. There is an outdoor dining space as well and the entire restaurant seats 50 people.
The hotel has 14 rooms over 4 floors, in a three unit shophouse. Rent on this large space is only 100,000 baht per month. The hotel has income from a tour company of 15,000 baht a month, reducing the total overall rent to 85,000 baht a month. The lease is set for 4 years plus 3. There are 6 staff with a total monthly payroll of 70,000 baht a month. Located right on the main road and with good lease terms, this is a deal.
The owner is moving to Bangkok and so must sell the business. The sale includes all new equipment and the fully renovated restaurant and bar as well as a Thai company with work permit.
ASKING PRICE: 5 million baht
(BKK15804)
Rayong energy field construction company with land
This long-established fabrication and construction company has been in business for 20 years and is a specialist in the energy field. The factory, which is on its own chanote title land in Rayong, has a total area of 24,000 sqm. This ISO 9001/2008 certified company has a registered capital of 30 million baht and has long established contacts and concessions in the business.
The owner is retiring and so is selling a well-established business with its own property.
ASKING PRICE: 130 million baht
(BKK15740)
Construction contracting factory in oil & gas in Rayong
This construction contracting business offers services across the board including metal fabrication, insulation, construction and manpower. The company has been in business since 1997 and has earned a good reputation for quality work and has many large companies as customers including those in the gas, oil and chemical fields. This is a good business for someone looking for a turn key business that has a steady stream of customers.
The business is well-run and has 40 experienced full-time employees with a total monthly payroll of 900,000 baht. Sales last year reached 50 million baht and net profit is around 10 percent. The company is established in the busy area of Rayong and the 10 rai of land the business is on is included in the sale. The land is market valued at 15 million baht.
The owner is moving back to his home country and so is looking to sell this well-established ongoing business.
ASKING PRICE: 33 million baht
(BKK15703)
Samui luxury resort with direct beach access on Samui
Have you always wanted to live the life in paradise? Now is your chance! This exclusive luxury resort has direct access to the beach on the peaceful and idyllic west coast of Koh Samui. Samui has developed a reputation for top luxury resorts that attract people from around the world.
Established in 2008, the resort has two villas and four apartments, a pool and a large private home, guest villa and gym. The total land area is 3200 sqm fronting the beach with a full chanote title for the new owner.
The villas are large, at 118 sqm each, while the four apartments are 32 sqm each. The private mansion is an enormous 760 sqm while the guest villa is 75 sqm. There is a fully fitted 75 sqm gym as well.
Sales last year reached 3.8 million baht and there are four full time employees. The valuation of this project has been set at 195 million baht but the owners are keen to move off island for their children’s education so are selling it at a must buy price of 150 million baht.
ASKING PRICE: 150 million baht
(BKK15798)
