Weekly Column

Sunbelt Asia Weekly Column 31 May 2019

Sunbelt Asia Weekly Column

31 May 2019

Sunbelt Asia would like to offer HM Queen Suthida our heartfelt best wishes on her birthday celebrations today.

The Thai Cabinet approved three new exemptions to service businesses requiring a Foreign Business License in May, the three categories, which are expected to be enacted by the Ministry of Commerce will allow foreigners to engage in the provision of loans to affiliates and subsidiary companies, lease of office space to affiliates and subsidiary companies and consultation services for management, marketing, human resources, and information technology to affiliates and subsidiary companies. Currently the definition of affiliates and subsidiaries has not been established but are expected to be included in the new ministerial regulations when they are announced.

Thailand has climbed five places in the World Competitiveness Index from the International Institute for Management Development (IMD) of Switzerland. Ratings are based on economic performance, government efficiency, business efficiency and infrastructure. According to the National Economic and Social Development Council (NESDC). Thailand performed better in the three criteria of infrastructure, economic performance and government efficiency. Improved business legislation from the government was highlighted although business efficiency dropped. Thailand came third in South East Asia and 25th globally.

Western Union has joined with Central Groups financial services division to launch online international money transfers after seeing success in that area in North America and Europe. The company has launched a new mobile app. Customers can pay for their transactions with their own currency within the digital channels using either a card or an account, or can use the app or web and pay in-person at one of their retail offices. The company will be charging 99-baht fee during the promotional period.

The Thai government has also announced some changes to the Labor laws including the following:

Section 108: An Employer who employs a total of ten or more persons shall provide work rules in Thai language and the rules shall contain details on the following:

(1) Working days, normal working time and rest periods.

(2) Holidays and rules on taking holidays.

(3) Rules governing overtime work and holiday work.

(4) Date and place of payment of wages, overtime pay, holiday pay and holiday overtime pay.

(5) Leave and rules on taking leave.

(6) Discipline and disciplinary measures.

(7) Complaints.

(8) Termination of employment, severance pay and special severance pay.

“The Employer shall announce and apply the work rules within fifteen days of the date that the Employer employs a total of ten or more persons; and the Employer shall at all times retain a copy of such rules at the place of business or at the Employer’s office. The Employer shall disseminate and conspicuously post the work rules at the workplace of the Employees for the Employees’ information and acknowledgement so that the Employees shall be able to conveniently check the rules.” Any changes must be announced within seven days.

Other changes affect companies, one or more shareholders holding an aggregate of 10 percent of shares may call an extraordinary general meeting but must state clearly the reasons. Shareholders or one shareholder holding an aggregate of 5 percent of shares may call on the Registrar to inspect the business, financials and the conduct of the board of directors. Additionally, payment of dividends must be made within one month from the date of the resolution of the general meeting or of the meeting of the board of directors.

Sunbelt Asia Legal Advisors can handle all your legal and business needs; from visas to work permits, prenuptial agreements to divorces, condo purchases and wills.

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We at Sunbelt Asia see many of our clients regularly ask us legal questions regarding living and running a business in Thailand. To help out we have set up a FREE Expert Answers for Your Questions in Thailand Facebook page;
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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.

Restauarant in Great Fishermans’ Village Location on Samui

The owner of this restaurant in a top Samui location is offering it in a lease sale. He needs to focus his energies on his business in Bangkok and so is offering up this beautiful restaurant in a lease sale. Set in the hugely popular Fisherman’s Village in Bo Phut on Samui island, this restaurant has 350 sqm over two floors. The restaurant is beautifully decorated and has a great view. A dedicated owner with a great concept would do very well in this location.

Rent on this location is 200,00 baht, the sale includes the 10 million baht in key money for the long lease, the air conditioning units, the kitchen system and the decoration. Furniture and equipment not included.

ASKING PRICE: 15 million baht

Sale or Partnership for Samui Hotel

This hotel has great views overlooking the sea and is walking distance from the beach in Samui. The hotel, while nine years old, is in need of a dedicated owner and manager to overhaul the place. There are 33 rooms, a restaurant and pool. The new owner could easily grow this business once some basic maintenance is done and systems put in place to manage it properly. The current owner has a separate career and cannot put any time into the business and found the management in place had not actually done any real management.

The buyer has several options; a down payment of 42,150,000.00 baht and the owner will finance the remaining 40 million baht, or their is also an option for a joint partnership with the owner. Monthly payments on 40 million baht could be as low as 250,000.00 baht if amortized for 30 years at 5% interest. If the buyer can pay the 42,150,000.00 down payment there will be no need to qualify for a bank loan.

This business has huge growth potential, Samui remains a popular destination and this hotel is very close to a popular beach. This is a great opportunity for someone who wants to get in on the ground floor of a hotel in Samui

ASKING PRICE: 82.15 million or 40 million for a partnership with the current owner

Lease Sale of Amazing Beach Front Restaurant on Popular Phuket Beach

In a lease and assets sale, this beautiful beach front restaurant and wine bar on Phuket is in a fantastic location.

The space has incredible ocean views from its extensive outdoor space. There is 400 meters of indoor and outdoor space plus a150 sqm terrace area.

Rent on this space is 200,000 baht and there is a 10-year lease. Furniture and equipment is not included in the sale.

The owner is selling the lease and decoration as he has no time to manage this restaurant and plans on focusing on his main business in Bangkok.

ASKING PRICE: 5 million baht

Soi 11 Restaurant and Wine Bar Lease Sale

This restaurant and wine bar is in an amazing Sukhumvit location. Set on the very busy and popular Soi 11, the rent on this location is 400,000 baht for 395 sqm – both indoors and outdoors.

The restaurant is beautifully decorated and has a 10-year lease. All décor is included but equipment and furniture is not included in this lease sale.

The owner is selling the lease on this location as he needs to focus on his core business.

ASKING PRICE: 6 million baht

IT Consulting and Software Firm

Offering software and consulting specializing in Information Systems and Enterprise Content Management, this business also offers product design solutions, international standard technical and engineering resources. It has earned a good reputation and built up a clientele of major corporations in Thailand since it started business in 2015. Currently the company has 60 active well-known clients and 12 clients that pay an annual fee for services.

This business has seen gross sales over 14 million baht a year since its inception and profits from 4.9 million baht and up, gross sales for 2018 are already at 24.9 million baht and profits at 9 million baht. There are four staff, including the owner and monthly payroll for staff excluding the owner is 130,000 baht.

The owner willing to stay with the new buyer for 1 year to ensure a smooth transition and will also offer future support if the new owner wants to create new software. The three major pieces of software that the company owns are valued at 5 million baht each and are included in the asking price.

ASKING PRICE: 30 million baht

Beautiful Sathorn Restaurant with Parking

This restaurant and bar is in the central business district of Sathorn and has been designed by a top design studio. All equipment is high end and there is an 8 year lease on the building and the outdoor garden. There is also an apartment upstairs for someone to live on site.

There is a parking agreement with a local business for spillover so that parking for customers is never a problem. The restaurant was set up with a Thai company and is eligible for a work permit.

The owner found their concept did not attract their target market but believes this restaurant could be attractive to locals and people in the area with the right concept and food. The owner invested more than 15 million baht but is selling for 10 million.

ASKING PRICE: 10 million baht

Don Mueang Area Restaurant Near Large International School

In the Don Mueang area very near a large international school this Italian restaurant offers pizza and baked goods along with Thai food. The restaurant is fully equipped with professional kitchen equipment and the premises renovated beautifully. Well-trained staff will stay on for the new owner so that the transition remains smooth.

The restaurant was established in 2017 and has 6 employees with a monthly payroll of 62,000 baht. Rent on the 197 sqm two storied building is 59,000 baht a month, revenues have reached 3.4 million baht. The owner invested 4.5 million baht in the business and is selling the brand, all equipment, furniture, and fittings. The owner has found he is unable to manage the business but believes a dedicated owner with time to manage the restaurant could easily see revenues grow and see the restaurant turn a profit. The owner invested 4.5 million in the business but is selling at a low price to get out quickly.

ASKING PRICE: 2.8 million baht

Updated Price on Sathorn Area Restaurant

The owner has dropped the price to only 2.8 million for a quick sale as he has now closed the restaurant, assets are valued at more than 4 million baht.

Located in the business district of Sathorn, this chic French restaurant offers locally sourced food presented in new and interesting style. The restaurant has earned excellent reviews on Trip Advisor and on foodie websites and blogs.

This bistro style restaurant has 300 sqm of indoor space with an incredible rent of only 15,000 baht a month with one year lease, there is a charming al fresco dining area and a car park nearby. There are 5 full time employees and one part-time with a total monthly payroll of 80,000 baht. The business has been growing since its opening with annual sales reaching 4.5 million baht. Although it is now at the break-even stage a dedicated owner with time to manage and market this restaurant could easily see that grow. Fixtures, fitting and equipment valued at 2 million baht is included in the sale.

This is a great opportunity to walk into a turn-key business and make it grow.

UPDATED ASKING PRICE: 2.8 million baht


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