Guest House Lease/Buy in Goa

Definitivesound · Nov 21st, 2007, 16:05

Hi Guys, I'm new to the forum but have read nearly every page of information and found it very helpful so thank you.

I was hoping that some of you might have some insight or recommendations for me. My girlfriend and I are aiming to move to Goa and run a guesthouse (out of the main tourist areas, either North to Arambol or south to Palolem).

We understand that it is not as simple as forming a company, buying a house and working but if anyone has any advice regarding leasing/purchase for acctual trading companies. Not a dodgy company formed just to buy a property.

We would like to lease a Guesthouse for the first year (or 2) so we can familiarise ourselves without commiting loads of cash. Does anyone have any experience of this? or of leasing any business in Goa? We are intending to stay open outside of the season as well.

I have lots more i could tell you about the plan but i am trying not to waffle on.

Thanks for your time

Nick-H · Nov 21st, 2007, 16:31

You've read this?

And this?

Not sure that those two threads leave much unsaid about buying property in Goa. But, if anyone can think of anything....

Definitivesound · Nov 21st, 2007, 16:57

Hi Nick,
I have read both those threads but they are not really specific to running a guest house. Along with the leagl issues surrounding lease/purchase i was hoping someone has some experience in this area. Perhaps someone has run / is running a business in Goa and has some advice.

Thanks

Nick-H · Nov 21st, 2007, 17:50

Yes, you are right that they tend to be residentially-oriented rather than directed to those seeking to set up a genuine trading business; that did cross my mind when I posted.

However, I think they give a good idea of situation in which you would be attempting to operate.

Thanks for the confirmation that you have read thise threads, though

Definitivesound · Nov 21st, 2007, 18:12

No Problem, this site has been very informative and i can apreciate the issues people are facing with regards to residential. We are very serious about this from the busness plan to the finance options that are open to us. We have sought leagal advice from soliciters based in the UK but with branches in India and business advice from our bank (who can help us in India as well) but there is nothing like good advice from people who have acctually been there and experienced things.

Many thanks for your time.

shashank.aggarwal · Nov 21st, 2007, 21:25

Even though I have very limited knowledge on the subject, but this is something that I am interested in learning about.

Now to the OP, leasing a guest house and running it would be like setting up any other business in India. The procedure would be something like setting up a company first, then the company would be leasing or establishing the guest house, you have ascertain, what kind of FDI is allowed in that.

As you have said that you have already taken legal advice and have done a bit of research on the same, if you can share what you know, then others can help you to fill in the gaps or correcting what you know.

birds · Nov 22nd, 2007, 11:46

There are several foreigners around which bought properties to run as guest houses/hotels. 100% foreign investment is allowed in the tourist industry so it is possible to set up a company and buy a property to run as a hotel. It is not easy but possible. They are cracking down on bogus companies only set up to buy property and now make the point that the purchased property must be relevant to the objective of the company as indicated in the company's articles of association. I would advice to first come to Goa and talk with foreigners who have done the same before making any definite plans.

Definitivesound · Nov 22nd, 2007, 19:58

Hi Birds,

Thanks for the reply. I think that is very good advice and we will be sure to speak to people. We have 3 contacts so far (2 guesthouses and 1 restaurant) but we would love to hear from anyone else who has experienced this or knows of people we could speak too. Any information is greatly received.

GoanCanuck · Dec 5th, 2007, 21:23

Quote:

Originally Posted by Definitivesound

I was hoping that some of you might have some insight or recommendations for me.

I do have a fair bit of knowledge on this matter. Are you in Goa at the moment? If yes then we can discuss this further.

omshanti · Feb 26th, 2008, 02:00

Hello all - am quite interested to know Definitivesound if you were able to get any further information. I am also seriously considering leasing (not buying) a beach shack/bar from a long time Goan friend but wouldn't even know where to start in terms of logistics. Any information would be much appreciated.

Thanks

Definitivesound · Feb 26th, 2008, 16:30

Hi,
After our visit in December/jan we have decided to Lease for 6 months whilst we sort things out. We havent progressed much futher than that really as it is far to difficult to organise these things from the UK so we will wait until we are on the ground in 08 to get ourselves sorted. My only advice at the moment is that if you are trading in any capacity make sure you have the correct visa (although lots of people dont) and keep proper financial records so you pay the correct tax otherwise the local gov officals might decide to guess what you owe and then it gets complicated.

Good luck

omshanti · Feb 27th, 2008, 08:51

Thanks for your respons Definitivesound...

Yes, it seems the best way to sort things out is from there. I am heading over soon but am also eager to figure out before I get there what the best course of action is. I guess a lawyer and/or accountant would be step 1.

As for your advice RE: correct visa and paperwork, I completely agree. But that does seem to be the trickiest part - getting the visa.

Also wondering as to how simple (or not) arranging the lease and transfering funds is? And what pre-requisites, if any, are needed before even signing a lease?

Anyone have any experience or wisdom on this?

Nov 21st, 2007, 16:05	#1
Definitivesound Definitivesound Join Date: Nov 2007 Location: London Posts: 9	Guest House Lease/Buy in Goa Hi Guys, I'm new to the forum but have read nearly every page of information and found it very helpful so thank you. I was hoping that some of you might have some insight or recommendations for me. My girlfriend and I are aiming to move to Goa and run a guesthouse (out of the main tourist areas, either North to Arambol or south to Palolem). We understand that it is not as simple as forming a company, buying a house and working but if anyone has any advice regarding leasing/purchase for acctual trading companies. Not a dodgy company formed just to buy a property. We would like to lease a Guesthouse for the first year (or 2) so we can familiarise ourselves without commiting loads of cash. Does anyone have any experience of this? or of leasing any business in Goa? We are intending to stay open outside of the season as well. I have lots more i could tell you about the plan but i am trying not to waffle on. Thanks for your time

Nov 21st, 2007, 16:31	#2
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 26,856	You've read this? And this? Not sure that those two threads leave much unsaid about buying property in Goa. But, if anyone can think of anything.... __________________ . Just one member of the IndiaMike Mod Team

Nov 21st, 2007, 21:25	#6
shashank.aggarwal Mr. Badboy :D Join Date: May 2007 Location: ~ Dilli ~ Posts: 5,504	Even though I have very limited knowledge on the subject, but this is something that I am interested in learning about. Now to the OP, leasing a guest house and running it would be like setting up any other business in India. The procedure would be something like setting up a company first, then the company would be leasing or establishing the guest house, you have ascertain, what kind of FDI is allowed in that. As you have said that you have already taken legal advice and have done a bit of research on the same, if you can share what you know, then others can help you to fill in the gaps or correcting what you know. __________________ Travelogue - Around India Random Reviews

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Nov 21st, 2007, 16:57	#3
Definitivesound Definitivesound Join Date: Nov 2007 Location: London Posts: 9	Hi Nick, I have read both those threads but they are not really specific to running a guest house. Along with the leagl issues surrounding lease/purchase i was hoping someone has some experience in this area. Perhaps someone has run / is running a business in Goa and has some advice. Thanks

Nov 21st, 2007, 17:50	#4
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 26,856	Yes, you are right that they tend to be residentially-oriented rather than directed to those seeking to set up a genuine trading business; that did cross my mind when I posted. However, I think they give a good idea of situation in which you would be attempting to operate. Thanks for the confirmation that you have read thise threads, though

Nov 21st, 2007, 18:12	#5
Definitivesound Definitivesound Join Date: Nov 2007 Location: London Posts: 9	No Problem, this site has been very informative and i can apreciate the issues people are facing with regards to residential. We are very serious about this from the busness plan to the finance options that are open to us. We have sought leagal advice from soliciters based in the UK but with branches in India and business advice from our bank (who can help us in India as well) but there is nothing like good advice from people who have acctually been there and experienced things. Many thanks for your time.

Nov 22nd, 2007, 11:46	#7
birds Adopt a stray Join Date: Apr 2006 Location: Goa Posts: 541	There are several foreigners around which bought properties to run as guest houses/hotels. 100% foreign investment is allowed in the tourist industry so it is possible to set up a company and buy a property to run as a hotel. It is not easy but possible. They are cracking down on bogus companies only set up to buy property and now make the point that the purchased property must be relevant to the objective of the company as indicated in the company's articles of association. I would advice to first come to Goa and talk with foreigners who have done the same before making any definite plans.

Nov 22nd, 2007, 19:58	#8
Definitivesound Definitivesound Join Date: Nov 2007 Location: London Posts: 9	Hi Birds, Thanks for the reply. I think that is very good advice and we will be sure to speak to people. We have 3 contacts so far (2 guesthouses and 1 restaurant) but we would love to hear from anyone else who has experienced this or knows of people we could speak too. Any information is greatly received.

Feb 26th, 2008, 02:00	#10
omshanti mera dil hindustani hai Join Date: Apr 2004 Location: milky way Posts: 38	Hello all - am quite interested to know Definitivesound if you were able to get any further information. I am also seriously considering leasing (not buying) a beach shack/bar from a long time Goan friend but wouldn't even know where to start in terms of logistics. Any information would be much appreciated. Thanks

Feb 26th, 2008, 16:30	#11
Definitivesound Definitivesound Join Date: Nov 2007 Location: London Posts: 9	Hi, After our visit in December/jan we have decided to Lease for 6 months whilst we sort things out. We havent progressed much futher than that really as it is far to difficult to organise these things from the UK so we will wait until we are on the ground in 08 to get ourselves sorted. My only advice at the moment is that if you are trading in any capacity make sure you have the correct visa (although lots of people dont) and keep proper financial records so you pay the correct tax otherwise the local gov officals might decide to guess what you owe and then it gets complicated. Good luck

Feb 27th, 2008, 08:51	#12
omshanti mera dil hindustani hai Join Date: Apr 2004 Location: milky way Posts: 38	Thanks for your respons Definitivesound... Yes, it seems the best way to sort things out is from there. I am heading over soon but am also eager to figure out before I get there what the best course of action is. I guess a lawyer and/or accountant would be step 1. As for your advice RE: correct visa and paperwork, I completely agree. But that does seem to be the trickiest part - getting the visa. Also wondering as to how simple (or not) arranging the lease and transfering funds is? And what pre-requisites, if any, are needed before even signing a lease? Anyone have any experience or wisdom on this?

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