Haris & Associates Phuket Thailand Legal Blog

Buying Out an Existing Thai Business

Foreigners have limited options when it comes to setting up shop in Thailand. One of the possible options is to buy out an existing business, instead of starting one from scratch. This can mean immigration and work authorization processing may be easier and faster than starting a new company.

If a non-Thai entrepreneur sets up a business in the country, he will be required to officially employ at least four Thai nationals to work for him before he can extend his business visa for up to a year. Typically, evidence proving that Social Security contributions and Employee Withholding Tax have been paid for the employees is to be submitted to the Immigration Bureau. However, should the non-Thai businessman buy out an existing enterprise, he will not need to go through all that troubled, since the company may already have the necessary number of Thai employees and the proof that Social Security Contributions and withholding taxes have already been paid for.

Generally, a Phuket lawyer can help a foreign investor get through any hurdle while buying out an existing company in Thailand. The lawyer can provide the following legal services:

 

DUE DILIGENCE

It is crucial to practice due diligence when buying out a business, just like purchasing a property in Thailand. This is why it helps to hire a trusted Phuket business attorney who will verify details regarding the company the foreign entrepreneur wants to buy. These include:

 

• Company registration information
• List of current shareholders
• List of current directors
• Recent financial balance sheets

 

Due diligence will also help the investor and his Thailand business attorney ensure that the company in question does not owe back taxes or is not facing any legal case, including bankruptcy.

DRAFTING AND/OR REVIEW OF CONTRACT

A lawyer Phuket will also help draft and prepare the share transfer agreements and contract to ensure that it provides details of other terms and conditions regarding the acquisition of the company.

 

REGISTERING CORPORATE RESTRUCTURE

The Thai business attorney can also help prepare the paperwork needed for the registration of the restructuring of the company. The legal practitioner will also be able to help draft a company resolution authorizing the new owners to have access to h corporate bank account, as well as other amendments, including new company bylaws and objectives.

The expertise and knowledge of a Phuket international business lawyer can help make the lives of foreign investors easier. However, it is important to choose the person to trust.