For those who are concerned that this topic will disappear ... worry not.

After replies have died down it will be moved into the Resource Forum



It has been an excellent thread ... special thanks to John Botting & Asianad for their insights.



Cheers ...

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     " ... good  GOD, this is even worse than I thought ... "

Edited by: Smiles2 at: 11/14/04 9:58 am

I'm convinced the best niche market for a prospective guesthouse owner is the ladyboy-lover market.  There is only one guesthouse (with only five rooms) catering to this market in the entire Kingdom (link below):



www.kohjoy.com/theplacetostay.html  



Guys who love ladyboys are forced by default to stay at either str8 or gay accomodations not being completely comfortable in either.  I would guess (and that's all it is)that 90% of Thailand sex tourists are straight, 9% gay, and 1% prefer ladyboys..  Zero rooms in BKK, zero rooms in Pattaya, just five rooms in Phuket?  Do the math!



Marketing costs are low.  A very simple, inexpensive website can be promoted for free on every Thai-ladyboy  internet bulletin board.  If you choose this road less traveled, I might be willing to help you with promotion.



If it's so easy why don't I do it?  Good question!  I have no experience in the hotel business or interest in design, property maintenance or construction.  I also have no interest in supervising Thai workers or dealing with government red tape.  My interest is marketing and know I can fill your guesthouse.



Best of luck Viking!



 

Edited by: Astroman at: 11/14/04 3:02 pm

GP:  That procedure you describe sounds dangerously parallel to the procedure suggested to me by realtors to buy a condo that is not part of the "49%-for-farang" allocation.



I was told, more than once, that I could form a Thai company with 6 Thai people who would immediately resign after the company was set up and bought the property.  Then I would remain the sole director (?) of the company and hence retain control and indirect ownership of the property.



Is this apples and oranges?  ie. Does what you refer to in the context of owning & operating a business here differ from the context of purchasing real estate?

Edited by: bkk gwm at: 11/17/04 10:16 am

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with such "resignations" being held by the lawyer for use when it seems expedient.

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Not my experience, all paper work is held by me.

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but it is my understanding -- based on such limited research as I can do into Thai law -

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Oh dear, sounds dangerous! An amateur expert   but here we go anyway...

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that such an arrangement is illegal and can be set aside and perhaps even risk having the company's property forfeited to the government for failure to have seven shareholders, and using a fraudulent scheme.

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From my REAL LIFE experience 99% of business people I know are set up like this. Majority of houses and land is bought like this. Why is it then that 99% of business people aren't walking around asset-less and homeless?

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I am so advised by people I consider knowledgeable in Thai law. It has also been expressed publicly several times at the Pattaya City Expats Club by a guy who works closely with expats in trouble.

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Yes we both know who this is, and I got lectured on this last year. This is the man up on slander? I will listen to what he has to say.  

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Even though many Thai lawyers and "consultants" use this method, it does not mean it is legal. Many Thai lawyers, unfortunately, will do what the client wants them to do, and seldom tell them "it cannot be done legally."

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Most people here when they arrive have no idea what is legal or not and put their trust into a lawyer. Rest assured that even the respected and better quality law firms in Pattaya and certainly elsewhere in Thailand do this. Why? They are not "instructed" to do this by a client who is unable to instruct through ignorance.



This is not a dig a you personally PG, but get a grip man... TIT!!!

Edited by: John Botting at: 11/17/04 11:14 am

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Not so. The Thais do not resign. The just complete the paperwork, however they are still shareholders with you as the MD and main shareholder holding preferential shares (if its set up correctly). You will retain this paperwork and therefore have complete control over your company. Pseudo board meeting will be held to make certain decisions, which your lawyer will arrange on your behalf.

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Interesting.  I won't fault the realtors for not clearly explaining that, as they are not native speakers of English and probably took a short cut saying the Thai directors would resign, leaving me in sole control.



I'm still not clear on how I retain "complete control" over the company, if their resignations are never effective.  What's the point of an undated letter of resignation, in light of the fact that I canNOT have them resign unless I immediately replace them with some other (probably just-as-unknown) Thai person.



What I'm missing is, how can I not be outvoted on an issue, say, to sell the property against my wishes (or, vv, to not let me sell), or be unseated as a director?



Is the key the "preferential shares" John mentions?  In American corporation "preferred shares" only benefit from payment of dividends before "common shares" of stock.  What do "preferential shares" mean/do in Thailand?



Thanks a million, gentlemen, for all this advice!



(added later) PS: I guess what is gnawing at me is that there are 6 of them and 1 of me, and what keeps them from outvoting me?  Do I, as one director, somehow own more than 50% of the company?

Edited by: bkk gwm at: 11/18/04 11:50 pm