Import/export As A Foreigner

[~G~]

Dear Forum Members

I am a non-Thai, interested to start a Trade company in Thailand. I plan it to mainly focus on Export of Thai agricultural products to Europe and other markets.

Unlike many types of businesses opened by foreigners in Thailand, I understood that there is no legal requirement for me to have a Thai partner, if the business engages in "Export". Does anyone know if this is indeed true? To clarify, I do not intend to open a "Thai Company" but a foreign company which will operate in Thailand.

I would also be gratefull if anyone can share his/her experience and tell me about other restrictions or about the procedure I should follow to set up the company/registration/taxation...

Thanks a lot,

Gal

[Indo-Siam]

Hello "G" -

It is true that exporting is one of two main categories of activity that is not prohibited to foreign-majority-owned companies (the other being manufacturing) - the reference being the listing of activities prohibited by the Foreign Business Act of 1999 (see http://www.thailawforum.com/database1/foreign5.html).

But - although this is the correct situation, and you are not liable to prosecution for violating the Act, you will learn that Immigration and the Labor Ministry will be tough to convince of this fact - it will be up to you to "prove" that your company is not engaging in prohibited activity - and they will tend to NOT give you the benefit of the doubt. So - you will be right, but yopu will experience frustration that may not be worth the effort.

I don't know what you mean by "opening a foreign company in Thailand." If you are thinking of opening a Thai Representative Office in Thailand, I suggest that you reconsider. Doing so is a long, painful, and expensive process - and you end up with an enterprise which is greatly restricted in the activities it may pursue. Assisting an overseas Head Office with sourcing products from Thailand IS a permitted activity.

In practice, you will want to incorporate a Thai Private Co. Ltd. - which will require that shares be distributed initially among at least seven individuals (shareholders holding just one share is acceptable). If you want to obtain a work permit here, you will have to register at least 2,000,000 baht in capital (and by law, you must pay-in 25% of that amount within 90 days of incorporation - but there is preesntly no mechanism to confirm this). If you want to obtain a long-term entry permit extension that allows you to stay in Thailand for longer than 90 days at a time, then your company will need to document at least four Thai employees on the payroll, and that you have paid-in at least 2,000,000 baht in capital.

If you want more specific information, I invite you to send me a conventional e-mail message to which I can reply with attachments - the same goes for anyone else reading this thread who has similar interests.

Good luck!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

www.thaistartup.com

[email protected]

Skype: sykesbkk

[~G~]

Thanks a lot.

My idea is to open an office in Thailand of as a foreign company which will manage Export from Thailand. The main activities of this office will be acuiring agricultural goods in Thailand and shipping them abroad, as well as market research, trade mediation and related activities. Do you foresee difficulties with such an operation?

Can you also elaborate on the other option of registering a Thai private Co. Ltd.? I am able to register 2,000,000 baht in capital.

I have sent you a standard email as well.

[Doi Thong]

Noone will actually ask you for 2 miilion baht, it's just on the paper. The easiest option in your case is to open Thai LTD with almost all the shares on your name.And your 6 "Thai Shareholders" will keep 1 share each. Much cheaper and fastest option. This is the case for "export only" company.

Thanks a lot.

My idea is to open an office in Thailand of as a foreign company which will manage Export from Thailand. The main activities of this office will be acuiring agricultural goods in Thailand and shipping them abroad, as well as market research, trade mediation and related activities. Do you foresee difficulties with such an operation?

Can you also elaborate on the other option of registering a Thai private Co. Ltd.? I am able to register 2,000,000 baht in capital.

I have sent you a standard email as well.

<{POST_SNAPBACK}>

[Khutan]

My company was set up as an Export / Trading company. Didn't have any problems with the government.

We said "General Export" and elaborated that our focus was OTOP products.

I think it also depends of your company structure.

So if you don't actually grow, build or manufacture anything you are fine, and you are set up to buy locally and sell offshore, they seem to like that.

Now how hands on the Thai employees get with the purchasing is another thing. Somethimes they are scallywags and go to the wrong place of work for months at a time.....

[~G~]

mattnich, is your company a foreign-owned TPCL? No problems with Immigration and Labor Ministry? Did you get long-stay visa and work permit for a foreigner?

If I understood correctly, in the case of a FOREIGN-OWNED TPCL I can have 6 Thai shareholders holding 1% of the shares each and I can hold 94% of the shares?

[Indo-Siam]

If you wish, you may have a TPCL with seven foreign shareholders, none of whom have ever set foot in Thailand. There is no requirement for any Thais to be in the picture - as shareholders or directors.

At any point that foreigners will own 50% + one share, it does not matter who your shareholddrs are - there is no distinction between foreigners owning 50.1%, or 100 percent - you just need signatures of seven individuals.

Steve

Indo-Siam

[terry74]

Dear Forum Members 

I am a non-Thai, interested to start a Trade company in Thailand. I plan it to mainly focus on Export of Thai agricultural products to Europe and other markets.

Unlike many types of businesses opened by foreigners in Thailand, I understood that there is no legal requirement for me to have a Thai partner, if the business engages in "Export". Does anyone know if this is indeed true? To clarify, I do not intend to open a "Thai Company" but a foreign company which will operate in Thailand.

I would also be gratefull if anyone can share his/her experience and tell me about other restrictions or about the procedure I should follow to set up the company/registration/taxation...

Thanks a lot,

Gal

<{POST_SNAPBACK}>

[jmglt]

Dear Steve

We have a query along the same lines as the original post.

Would appreciate your thoughts on this. My husband and I have set up a Thai ltd co, initially to own the land on which our house is being built. We have now decided to go to Thailand to live from mid 2005, we both wish to work. We are both British, I am 50.

We plan to have two main areas of business activity: trading /export and property management services. I will run the property management services, my Husband will run the export business. We have already found prospective buyers where we currently live for Thai products.

We asked our lawyer to increase the amount of registered capital to 4 million Bt, as we understood that to be the requirement for two work permits. (1.5 million Baht would be the land purchase, balance would be cash in bank). Although we understand that WPs are not automatically granted, we are both directors of the company

We were told that it would be very difficult to obtain 2 WPs and that even to obtain 1 we would have to give 4 Thai ID numbers with the WP application. We wish to work legally - what do we have to do to achieve the 2 work permits. Thanks in advance for any advice you can provide

[~G~]

May I ask in kind of products are you planning to trade/export?

[Sunbelt Asia]

We were told that it would be very difficult to obtain 2 WPs and that even to obtain 1 we would have to give 4 Thai ID numbers with the WP application. We wish to work legally - what do we have to do to achieve the 2 work permits.

This lawyer is simply mistaken. ...wrong that it is difficult and mistaken that you have to give 4 Thai ID numbers with the application. Labor department only cares about the ratio if you state "I don't have 2 million Baht registered paid up capital but I do have 100 Thai employees." They then will waive the requirement of the 2 million Baht registered paid up capital. Other than that, nowhere is it a requirement on the ratio of Thais to get a work permit. Extension of stay based on business is a different matter.

www.sunbeltasia.com

[jmglt]

May I ask in kind of products are you planning to trade/export?

<{POST_SNAPBACK}>

[jmglt]

May I ask in kind of products are you planning to trade/export?

<{POST_SNAPBACK}>

We are intending to export furniture.

[jmglt]

We were told that it would be very difficult to obtain 2 WPs and that even to obtain 1 we would have to give 4 Thai ID numbers with the WP application. We wish to work legally - what do we have to do to achieve the 2 work permits.

This lawyer is simply mistaken. ...wrong that it is difficult and mistaken that you have to give 4 Thai ID numbers with the application. Labor department only cares about the ratio if you state "I don't have 2 million Baht registered paid up capital but I do have 100 Thai employees." They then will waive the requirement of the 2 million Baht registered paid up capital. Other than that, nowhere is it a requirement on the ratio of Thais to get a work permit. Extension of stay based on business is a different matter.

www.sunbeltasia.com

<{POST_SNAPBACK}>

Many thanks for your response - this is what we thought.