Business, Investment & Work In Pattaya
Legal Basics for Running a Business in Thailand Run Your Own Bar in Pattaya?
Business Opportunities, Work & Investment Links Teach English In Pattaya?
Those visitors to Thailand who have finally made the decision to settle down in what appears to be the Land of Smiles, and wish to make Pattaya their new hometown, but neither receive a pension nor have another source of regular income from abroad, will probably look out for business and/or work opportunities in order to make a living here. Others might well have some kind of regular income, however not sufficient to maintain their desired lifestyle, and are therefore looking for business, work or investment opportunities locally to add an extra regular income to the insufficient cash-flow from their home countries.
Whatever your personal financial situation may be, there are thousands of expatriates in Pattaya who have all taken the same big step to move to Thailand and start a new life before, and who have all faced a similar problem. Some might have succeeded - while many more have probably failed (and might have been forced to return to their home countries, bankrupt in some cases.)
First of all, running a business in Pattaya - or Thailand in general - is probably very different from what you were used to in your home country. Especially if you've never run a business of your own, the initial steps in Thailand might turn out to be difficult.
Secondly (and this is a serious warning!) if your financial possibilities, i.e. your local budget plus eventual reserve assets in your home country, should be limited, you'll probably find it hard to be successful on the long run and generate an income that would enable you to maintain a tourist- like lifestyle. In other words: If you want to run your own business and live in Thailand, i.e. live of the income that your business produces, you may also have to adjust your lifestyle.
Before going into furher details, here's an often-repeated expat joke:
Question: How do you make a small fortune in Pattaya? Answer: Start with a big one!
Legal Basics for Running a Business in Thailand
If you want to run a business in Thailand legally, you will have to set up a company and apply for a work permit. The basic requirement for both is a regular Non-immigrant "business visa" which can be applied for at Thai embassies or consulates, preferably in your home country. A foreign entity may never own more than 49% of the shares in a Thai company, while at least 51% must be Thai-owned. This means you will officially need Thai partners in your business.
Employment is strictly prohibited without a regular Non-Immigrant visa type "B" and work permit, regardless of whether you set up your own business or are employed by a local company. In the latter case your employer should arrange the necessary documents for you, and assist you with taking the right steps in order to successfully apply for a business visa and work permit.
Be aware of low-income job offers, e.g. "management" positions in the entertainment sector, and companies that offer to employ you without a work permit. According to Thailand's strict laws on foreign employment, you'd be considered an illegal laborer and at permanent risk of harsh fines, imprisonment and deportation.
Thailand Business Visa
If you want to set up your own company, you'll probably need the assistance of an established legal advisor or law firm which will help you with the legal procedure, company registration, work permit application etc. Also, please note that there are certain businesses which aliens are not permitted to operate by Thai law (e.g. agricultural businesses.)
Legal advisors & business consultants
Many foreigners who plan only a smaller investment in Pattaya - e.g. open a beer bar, small guesthouse, laundry, internet shop etc. - and don't want to go through the legal hassle of setting up a company, buy "their" business in their Thai girlfriend's or wife's name. Now there's nothing wrong with that essentially - albeit it's not the smartest way of securing your investment. On one hand, you may save on the running costs that come with a registered company, e.g. personal income tax, corporate tax, lawyer fees etc. which makes sense if your business produces only a moderate annual income. On the other hand, you would not be allowed to work in "your own" business (not even go to the fridge and get yourself a bottle of beer!) and shouldn't be surprised either if one day your Thai wife kicks you out of "your" bar or other small busines.
Run your "own" bar in Pattaya???
Many Farangs who have experienced the tempting nightlife of Pattaya dream of running their own bar, restaurant, small guesthouse or related tourism-oriented business. Of course, at first glance, the prospect of running your own bar in Pattaya and being the "big boss," drink your favourite brand of beer at wholesale prices, enjoy the company of "your girls" and mates, and even make money on top of that all, is very tempting. Looks like a paid holiday, doesn't it? Be warned, however; especially if you have no other income or reserves in your home country.
While a professionally run bar (restaurant, guesthouse, whatever) in the right location might well provide you with a sufficient income to survive, you will probably not make a fortune. If it's really got to be a bar, think well about the location, calculate the monthly costs for operating your business (rent, key money, wages, electricity etc.) and pre-estimate what your monthly takings might be realistically. Also compare the prices for similarly-equipped bars in similar locations (to scan the classified ads sections in the local English-language media might be helpful) and make sure you don't pay more than what is a realistic price. If you have a friend in Pattaya or someone you really trust, who already runs a bar or a similar business, his advise might also be useful. Be cautious, too, when the selling price is suspiciously low; the place might have never made any money (if it was a goldmine, why should the owner want to sell it at a bargain price?) or the deal might be dodgy one way or the other.
Do not listen to fairy tales of previous owners - even the more so if they are fellow countrymen of yours. They are basically just trying to get rid of the place, possibly because they can't afford to pay for the monthly losses anymore, so always inquire into why somebody wants to sell his bar. It is always wiser to have a chat with owners of similar businesses in the same area who do not want to sell, and whose experiences may help you make the right decision.
As the average beer bar owner story goes like Farang A buys a bar, runs it for a while (without economic success) and then sells it on to Farang B, make sure you won't be Farang C or D in that line of wannabe-bar owners who invest their savings into loss-bound businesses and, in the worst case, have to sell their bars at "urgent sale" prices, well below what they've initially paid themselves, or simply have to leave their businesses behind.
There have also been reports of bar-owner-cum-scammers in Pattaya who have sold the same bar to multiple people - while none of the buyers knew of the other one - or who have sold e.g. 50% shares in their business to ten different people or so before "disappearing" from Pattaya head over heels. If you buy a bar business but only rent the building, always make sure your name (or that of your Thai partner) is in the lease contract, and that the lease contract is signed by no other than the legal owner of the property. Also make sure that the lease is not just about to expire and "key money" might be required to renew it, or the lease might not be extended at all. If you should purchase a business including the property, it's highly recommended that you consult a lawyer. Do not pay or transfer any money before ownership of the property has been legally transferred at the land office. If you pay a deposit but later cannot dig up the rest of the buying price, your deposit would also most likely be gone.
Especially when relying on Thai business partners, or your Thai girlfriend or wife, due diligence should be your top priority. For example, if you buy a bar in your Thai girlfriend's name (in other words: you pay for the business your girlfriend owns) you shouldn't be surprised if one day she kicks you out of "your" bar. On the other hand, if you set up a company for your bar, or other business, and apply for a work permit as e.g. managing director, you'll be subject to income and other taxes (higher in the case of foreigners) which add to your monthly costs.
If you still wish to open a bar in Pattaya, expect to spend at least 500,000 Baht for a single-unit shophouse bar in a mediocre location, i.e. if you rent the place, not buy the building. To develop a small guesthouse in a rented shophouse building should cost you at least a million Baht. If you want to buy a shophouse building, expect to pay at least three million Baht or so in a halfway decent location. As everywhere in business, the sky is the limit. So if you fancy running your own A-GoGo bar on Walking Street, bring at least a few million Baht with you to get started!
Admittedly, there are a few foreigners who have made serious investments in Thailand (including the entertainment sector) and have been successful with unique business ideas. However, those few lucky guys who have literally made fortunes, probably have not made them here in Pattaya but have all had money before moving to Thailand.
On the other hand, there aren't many expats around who literally started from scratch and with a few hundred thousand Baht, set up a successful business, and have become rich men. To put it clearly, unless you have been a millionaire before, you'll probably not make a fortune or become a millionaire in Pattaya either. Realistically, if you break even - at least during the "low season" (money is being made in the high season anyway) - and manage to save a bit of your takings to cover your expenditures, well, for Pattaya standards, that's quite a success already.
So what other business, investment and job opportunities are there in Pattaya and Thailand?
If purchased at realistic prices (and following intensive market research) one of the most secure investment opportunities in the past decade could be seized in Thailand's property market. Both rental and sales prices for condominiums, residential houses and commercial buildings have continuously risen, at least until the outbreak of the global economic crisis which, however, has had only a minor impact on the local real estate market (prices for less desirable objects may have stagnated but have definitely not fallen.) So regardless of whether you decide to buy/refurbish/sell, or simply rent your properties out, you can easily make a substantial one- time profit, or generate a sustainable regular income.
Pattaya Real Estate Agents Thailand Property
Serious, yet rather risky, alternatives to investing in the local economy include offshore banking and asset protection or FOREX (Foreign Exchange) trading. Trading stocks online on the Stock Exchange of Thailand (SET) may be another viable option for investors willing to take a risk.
Offshore Bank Accounts & Asset Protection FOREX Trading Online
Unless you're highly skilled or qualified in a sector, in which Thai people are not competitive yet, your chances of finding an employment with a local company are relatively low. Due to the lower costs of employing Thai workers, restrictions on what foreigners are legally permitted to work in Thailand (no work permits required etc.) most companies are seeking Thai nationals only. There might be some chances in the hospitality sector (e.g. hotel management or chef positions) but serious job offers are rather limited.
If you still wish to work in Thailand - and do not qualify for such high profile positions - then your best option might be to seek a teaching position as English teacher (high demand for qualified teachers but relatively low pay) seek a job as a Scuba dive instructor, or start your own internet business or online store. It surely won't make you a millionaire either, but selling some stuff on Ebay, run a website, do some online gambling etc. may well supply you with a few extra Baht? Remember that the cost of living in Thailand is still relatively low, so if you manage to adjust your lifestyle (i.e. not maintain a tourist-like lifestyle) you should also need significantly less money in Thailand than you'd probably need in your home country - or at least enjoy a better quality of life. Teach English In Pattaya
Business, Work & Investment Links
Legal Basics for Running a Business in Thailand Run Your Own Bar in Pattaya?
Business Opportunities, Work & Investment Links Teach English In Pattaya?
Those visitors to Thailand who have finally made the decision to settle down in what appears to be the Land of Smiles, and wish to make Pattaya their new hometown, but neither receive a pension nor have another source of regular income from abroad, will probably look out for business and/or work opportunities in order to make a living here. Others might well have some kind of regular income, however not sufficient to maintain their desired lifestyle, and are therefore looking for business, work or investment opportunities locally to add an extra regular income to the insufficient cash-flow from their home countries.
Whatever your personal financial situation may be, there are thousands of expatriates in Pattaya who have all taken the same big step to move to Thailand and start a new life before, and who have all faced a similar problem. Some might have succeeded - while many more have probably failed (and might have been forced to return to their home countries, bankrupt in some cases.)
First of all, running a business in Pattaya - or Thailand in general - is probably very different from what you were used to in your home country. Especially if you've never run a business of your own, the initial steps in Thailand might turn out to be difficult.
Secondly (and this is a serious warning!) if your financial possibilities, i.e. your local budget plus eventual reserve assets in your home country, should be limited, you'll probably find it hard to be successful on the long run and generate an income that would enable you to maintain a tourist- like lifestyle. In other words: If you want to run your own business and live in Thailand, i.e. live of the income that your business produces, you may also have to adjust your lifestyle.
Before going into furher details, here's an often-repeated expat joke:
Question: How do you make a small fortune in Pattaya? Answer: Start with a big one!
Legal Basics for Running a Business in Thailand
If you want to run a business in Thailand legally, you will have to set up a company and apply for a work permit. The basic requirement for both is a regular Non-immigrant "business visa" which can be applied for at Thai embassies or consulates, preferably in your home country. A foreign entity may never own more than 49% of the shares in a Thai company, while at least 51% must be Thai-owned. This means you will officially need Thai partners in your business.
Employment is strictly prohibited without a regular Non-Immigrant visa type "B" and work permit, regardless of whether you set up your own business or are employed by a local company. In the latter case your employer should arrange the necessary documents for you, and assist you with taking the right steps in order to successfully apply for a business visa and work permit.
Be aware of low-income job offers, e.g. "management" positions in the entertainment sector, and companies that offer to employ you without a work permit. According to Thailand's strict laws on foreign employment, you'd be considered an illegal laborer and at permanent risk of harsh fines, imprisonment and deportation.
Thailand Business Visa
If you want to set up your own company, you'll probably need the assistance of an established legal advisor or law firm which will help you with the legal procedure, company registration, work permit application etc. Also, please note that there are certain businesses which aliens are not permitted to operate by Thai law (e.g. agricultural businesses.)
Legal advisors & business consultants
Many foreigners who plan only a smaller investment in Pattaya - e.g. open a beer bar, small guesthouse, laundry, internet shop etc. - and don't want to go through the legal hassle of setting up a company, buy "their" business in their Thai girlfriend's or wife's name. Now there's nothing wrong with that essentially - albeit it's not the smartest way of securing your investment. On one hand, you may save on the running costs that come with a registered company, e.g. personal income tax, corporate tax, lawyer fees etc. which makes sense if your business produces only a moderate annual income. On the other hand, you would not be allowed to work in "your own" business (not even go to the fridge and get yourself a bottle of beer!) and shouldn't be surprised either if one day your Thai wife kicks you out of "your" bar or other small busines.
Run your "own" bar in Pattaya???
Many Farangs who have experienced the tempting nightlife of Pattaya dream of running their own bar, restaurant, small guesthouse or related tourism-oriented business. Of course, at first glance, the prospect of running your own bar in Pattaya and being the "big boss," drink your favourite brand of beer at wholesale prices, enjoy the company of "your girls" and mates, and even make money on top of that all, is very tempting. Looks like a paid holiday, doesn't it? Be warned, however; especially if you have no other income or reserves in your home country.
While a professionally run bar (restaurant, guesthouse, whatever) in the right location might well provide you with a sufficient income to survive, you will probably not make a fortune. If it's really got to be a bar, think well about the location, calculate the monthly costs for operating your business (rent, key money, wages, electricity etc.) and pre-estimate what your monthly takings might be realistically. Also compare the prices for similarly-equipped bars in similar locations (to scan the classified ads sections in the local English-language media might be helpful) and make sure you don't pay more than what is a realistic price. If you have a friend in Pattaya or someone you really trust, who already runs a bar or a similar business, his advise might also be useful. Be cautious, too, when the selling price is suspiciously low; the place might have never made any money (if it was a goldmine, why should the owner want to sell it at a bargain price?) or the deal might be dodgy one way or the other.
Do not listen to fairy tales of previous owners - even the more so if they are fellow countrymen of yours. They are basically just trying to get rid of the place, possibly because they can't afford to pay for the monthly losses anymore, so always inquire into why somebody wants to sell his bar. It is always wiser to have a chat with owners of similar businesses in the same area who do not want to sell, and whose experiences may help you make the right decision.
As the average beer bar owner story goes like Farang A buys a bar, runs it for a while (without economic success) and then sells it on to Farang B, make sure you won't be Farang C or D in that line of wannabe-bar owners who invest their savings into loss-bound businesses and, in the worst case, have to sell their bars at "urgent sale" prices, well below what they've initially paid themselves, or simply have to leave their businesses behind.
There have also been reports of bar-owner-cum-scammers in Pattaya who have sold the same bar to multiple people - while none of the buyers knew of the other one - or who have sold e.g. 50% shares in their business to ten different people or so before "disappearing" from Pattaya head over heels. If you buy a bar business but only rent the building, always make sure your name (or that of your Thai partner) is in the lease contract, and that the lease contract is signed by no other than the legal owner of the property. Also make sure that the lease is not just about to expire and "key money" might be required to renew it, or the lease might not be extended at all. If you should purchase a business including the property, it's highly recommended that you consult a lawyer. Do not pay or transfer any money before ownership of the property has been legally transferred at the land office. If you pay a deposit but later cannot dig up the rest of the buying price, your deposit would also most likely be gone.
Especially when relying on Thai business partners, or your Thai girlfriend or wife, due diligence should be your top priority. For example, if you buy a bar in your Thai girlfriend's name (in other words: you pay for the business your girlfriend owns) you shouldn't be surprised if one day she kicks you out of "your" bar. On the other hand, if you set up a company for your bar, or other business, and apply for a work permit as e.g. managing director, you'll be subject to income and other taxes (higher in the case of foreigners) which add to your monthly costs.
If you still wish to open a bar in Pattaya, expect to spend at least 500,000 Baht for a single-unit shophouse bar in a mediocre location, i.e. if you rent the place, not buy the building. To develop a small guesthouse in a rented shophouse building should cost you at least a million Baht. If you want to buy a shophouse building, expect to pay at least three million Baht or so in a halfway decent location. As everywhere in business, the sky is the limit. So if you fancy running your own A-GoGo bar on Walking Street, bring at least a few million Baht with you to get started!
Admittedly, there are a few foreigners who have made serious investments in Thailand (including the entertainment sector) and have been successful with unique business ideas. However, those few lucky guys who have literally made fortunes, probably have not made them here in Pattaya but have all had money before moving to Thailand.
On the other hand, there aren't many expats around who literally started from scratch and with a few hundred thousand Baht, set up a successful business, and have become rich men. To put it clearly, unless you have been a millionaire before, you'll probably not make a fortune or become a millionaire in Pattaya either. Realistically, if you break even - at least during the "low season" (money is being made in the high season anyway) - and manage to save a bit of your takings to cover your expenditures, well, for Pattaya standards, that's quite a success already.
So what other business, investment and job opportunities are there in Pattaya and Thailand?
If purchased at realistic prices (and following intensive market research) one of the most secure investment opportunities in the past decade could be seized in Thailand's property market. Both rental and sales prices for condominiums, residential houses and commercial buildings have continuously risen, at least until the outbreak of the global economic crisis which, however, has had only a minor impact on the local real estate market (prices for less desirable objects may have stagnated but have definitely not fallen.) So regardless of whether you decide to buy/refurbish/sell, or simply rent your properties out, you can easily make a substantial one- time profit, or generate a sustainable regular income.
Pattaya Real Estate Agents Thailand Property
Serious, yet rather risky, alternatives to investing in the local economy include offshore banking and asset protection or FOREX (Foreign Exchange) trading. Trading stocks online on the Stock Exchange of Thailand (SET) may be another viable option for investors willing to take a risk.
Offshore Bank Accounts & Asset Protection FOREX Trading Online
Unless you're highly skilled or qualified in a sector, in which Thai people are not competitive yet, your chances of finding an employment with a local company are relatively low. Due to the lower costs of employing Thai workers, restrictions on what foreigners are legally permitted to work in Thailand (no work permits required etc.) most companies are seeking Thai nationals only. There might be some chances in the hospitality sector (e.g. hotel management or chef positions) but serious job offers are rather limited.
If you still wish to work in Thailand - and do not qualify for such high profile positions - then your best option might be to seek a teaching position as English teacher (high demand for qualified teachers but relatively low pay) seek a job as a Scuba dive instructor, or start your own internet business or online store. It surely won't make you a millionaire either, but selling some stuff on Ebay, run a website, do some online gambling etc. may well supply you with a few extra Baht? Remember that the cost of living in Thailand is still relatively low, so if you manage to adjust your lifestyle (i.e. not maintain a tourist-like lifestyle) you should also need significantly less money in Thailand than you'd probably need in your home country - or at least enjoy a better quality of life. Teach English In Pattaya
Business, Work & Investment Links
For advertising on this page, free listing or link submission, please contact us.
Back To Homepage
Copyright © 2008-12 Pattaya-Funtown.com. All rights reserved.
Back To Homepage
Copyright © 2008-12 Pattaya-Funtown.com. All rights reserved.
|
Your Banner Here! |
Pattaya Travel Info
Pattaya News
Pattaya Tourist Guide
Jomtien Beach Guide
Map of Pattaya
How to Get to Pattaya
Get Around in Pattaya
Guesthouses in Pattaya
Money & Banking
Tourist Attractions
Activities & Sports
Shopping in Pattaya
Restaurants in Pattaya
Useful Numbers
Pattaya Photo Gallery
Pattaya Video Clips
Pattaya Nightlife Guide
Pattaya Nightlife
Pattaya Bars
Pattaya GoGo Bars
Pattaya Bar Girls
Bar Girls Explained
Pattaya Ladyboys
Pattaya Gay Scene
Pattaya Nightlife Videos
Miscellaneous
Basic Thai Vocabulary
Body Massage
Business in Pattaya
Business Visa
Education Visa ("ED")
Golf in Pattaya
Health Care in Pattaya
Real Estate Agents
Retirement Visa
Scuba Diving in Pattaya
Teach English in Thailand
Thai Dating Sites
Thailand Real Estate
Thai Massage
Thai Public Holidays
Tourist Visa
Visa Run to Laos
Pattaya News
Pattaya Tourist Guide
Jomtien Beach Guide
Map of Pattaya
How to Get to Pattaya
Get Around in Pattaya
Guesthouses in Pattaya
Money & Banking
Tourist Attractions
Activities & Sports
Shopping in Pattaya
Restaurants in Pattaya
Useful Numbers
Pattaya Photo Gallery
Pattaya Video Clips
Pattaya Nightlife Guide
Pattaya Nightlife
Pattaya Bars
Pattaya GoGo Bars
Pattaya Bar Girls
Bar Girls Explained
Pattaya Ladyboys
Pattaya Gay Scene
Pattaya Nightlife Videos
Miscellaneous
Basic Thai Vocabulary
Body Massage
Business in Pattaya
Business Visa
Education Visa ("ED")
Golf in Pattaya
Health Care in Pattaya
Real Estate Agents
Retirement Visa
Scuba Diving in Pattaya
Teach English in Thailand
Thai Dating Sites
Thailand Real Estate
Thai Massage
Thai Public Holidays
Tourist Visa
Visa Run to Laos
Thailand Travel Info
Thailand News
Thailand Tourist Guide
Thai Visa Information
Thai & Foreign Embassies
Thai Baht Exchange Rate
Get Around in Thailand
Learn Thai Language
Thai News Links
Thailand Hotel Guide
Bangkok Hotels
Chiang Mai Hotels
Hua Hin, Cha-Am Hotels
Koh Chang Hotels
Koh Samui Hotels
Pattaya. Jomtien Hotels
Phuket Hotels
Other Destinations
Links & Downloads
Useful Websites & Links
FREE Website Builder
Pattaya Pool League
Jomtien Pool League
Visa Application Form
Thailand News
Thailand Tourist Guide
Thai Visa Information
Thai & Foreign Embassies
Thai Baht Exchange Rate
Get Around in Thailand
Learn Thai Language
Thai News Links
Thailand Hotel Guide
Bangkok Hotels
Chiang Mai Hotels
Hua Hin, Cha-Am Hotels
Koh Chang Hotels
Koh Samui Hotels
Pattaya. Jomtien Hotels
Phuket Hotels
Other Destinations
Links & Downloads
Useful Websites & Links
FREE Website Builder
Pattaya Pool League
Jomtien Pool League
Visa Application Form
|
Your Banner Here! |
