Six issues to ensure before buying your business in Thailand
- Understand the type of company you buy. There are different company types in Thailand and the rules for foreigners are tricky and change often. It is critical to understand the rules for the specific company type and the conditions for getting a work permit (which in some cases are different depending on company type) and other permissions that are required. In some cases Lease contracts offer an alternative to buying a company, but of course this also include special rules necessary to screen and overview.
- Make a proper ”due diligence” which basically means screening the companies; assets, debts, agreements, track record and its seller.
- Get a second opinion from an independent party. Some buyers get overexcited of the business opportunities, it’s therefore wise to let an independent party present a second opinion on business opportunities and risks.
- Screen and translate all documents to your own language. The contract of sale together with all official documents are important to screen and get translated to your own language to actually understand your rights and commitments.
- Check the companies official registration documents and title deed if the business include a property. This will let you know who the actual owner or owners are and if there are any liens or lease contracts you should be aware of.
- Make sure the business transaction is handled properly and that all conveyance documents are set-up by a professional working for you only.
4 issues when operating your business in Thailand
- Screen and translate all contracts with partners and suppliers. Partners and suppliers must be trusted but written contracts must be understood in detail.
- Handle accounting and tax issues properly to avoid getting disturbed by officials. Selecting the right accountant is important to get proper advise at reasonable cost.
- Hire the right people and pay employment taxes according to regulations.
- Understand your local market and work out a marketing plan to attract your target group.
Business in Siam will support you through all steps to secure a safe acquisition.
For more information, contact Business in Siam today