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Posted (edited)

Would Resellers of CMS in Thailand be classed as Importers, when the service would be Supplied from overseas and the products kept on servers overseas? If so, what Import tax processes and bracket would that fall into?

OR; to supply CMS would the Supply Company be required to start a company in Thailand?

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The preferred option, we have discussed, is as follows. The Resellers would have their own Internet service company in Thailand and prospect for customers by demonstrating to businesses. It would be similar to a franchise in some ways and not in others. It would follow the successful model achieved here, but the Reseller would Brand with their own name and there are NO franchise fees. The Reseller would own every Client and remit 60% of the suggested retail price overseas to the CMS originator, us. It's this import tax on the service going into Thailand or the fees being transferred out, or BOTH, that is the question. Is CMS classed the same as hard products, like canned salmon or car parts? The Clients could 'think' the Reseller supplies the whole product, though this is counter productive to the sales promotion. Customers should appreciate the product is crisp, fast and protected from source code scraping and website hacking, and virus free, because it secured in armed storage overseas. brought to them via Linux.

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If this can be done without having to open a branch office in Thailand, a new company; that would be preferable. This enquiry is to discuss the proper, legal processes. Please do not Respond if you have 'ways to get around it' suggestions.

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Another way to 'avoid' opening a company in Thailand would be for the Clients to individually pay to the CMSO overseas; then we remit back to the Resellers. While this process would be 'trustworthy', we want the Resellers to have full control of their clients from the start. Also, do the money transfer costs 'balloon' if each customers is remitting overseas, compared to the Resellers remitting the monthly accounts?

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We want to get our heads around this as much as possible in the Forum, so when we approach a Thai lawyer to draw up the Reseller Agreements, it saves their time and our money.

Did I once read that the sponsoring law firm is run by Canadians. Do they handle import issues, Reseller Agreements?

Edited by eggomaniac
Posted

Why would people want to resell/buy CMS when there are many excellent Open Source Solutions in the market like Typo3 and Joomla?

For business in Thailand they don't like to spend a lot of money in the first place and paying a fee on top for the CMS might kill the deal.

Now to answer your question from my experience dealing with working with non-Thai companies and handling their sales here and elsewhere. The way I do it with my client companies is my company acts as their sales/marketing representative. We for all intent and purpose are really the same as they are, just doing business under my company name but usually carrying their business cards. We meet the prospects and go through the sales process with them. The quotation comes out from their head office in USA, Israel, UK, whatever and all contracts, agreements, etc. are between them and the end customer here. PO goes to the main company, payments, etc. and then our commission on the deal is wired to our Thai company account.

If you want to set up resellers I expect their is some form of import duty (have not checked that for software or services) that is due to the government here, then at that point it is a pure product resale arrangement, we would pay you a set price for the system and then we would resell it bundled with whatever other services provided to the end client. All paperwork for any deal is between the Thai company reseller and the end customer, then payments flow from customer to reseller and back to you. VAT would be due in Thailand between the 2 Thai companies.

That is how I understand it would work if done purely legally.

Further comments welcome.

Dan

Would Resellers of CMS in Thailand be classed as Importers, when the service would be Supplied from overseas and the products kept on servers overseas? If so, what Import tax processes and bracket would that fall into?

OR; to supply CMS would the Supply Company be required to start a company in Thailand?

-------------

The preferred option, we have discussed, is as follows. The Resellers would have their own Internet service company in Thailand and prospect for customers by demonstrating to businesses. It would be similar to a franchise in some ways and not in others. It would follow the successful model achieved here, but the Reseller would Brand with their own name and there are NO franchise fees. The Reseller would own every Client and remit 60% of the suggested retail price overseas to the CMS originator, us. It's this import tax on the service going into Thailand or the fees being transferred out, or BOTH, that is the question. Is CMS classed the same as hard products, like canned salmon or car parts? The Clients could 'think' the Reseller supplies the whole product, though this is counter productive to the sales promotion. Customers should appreciate the product is crisp, fast and protected from source code scraping and website hacking, and virus free, because it secured in armed storage overseas. brought to them via Linux.

-----------

If this can be done without having to open a branch office in Thailand, a new company; that would be preferable. This enquiry is to discuss the proper, legal processes. Please do not Respond if you have 'ways to get around it' suggestions.

----

Another way to 'avoid' opening a company in Thailand would be for the Clients to individually pay to the CMSO overseas; then we remit back to the Resellers. While this process would be 'trustworthy', we want the Resellers to have full control of their clients from the start. Also, do the money transfer costs 'balloon' if each customers is remitting overseas, compared to the Resellers remitting the monthly accounts?

---------

We want to get our heads around this as much as possible in the Forum, so when we approach a Thai lawyer to draw up the Reseller Agreements, it saves their time and our money.

Did I once read that the sponsoring law firm is run by Canadians. Do they handle import issues, Reseller Agreements?

Posted

laxman; Thanks for the Reply.

A. Market feasibility is a good concern you have raised and is already being researched through a couple of 'potential' resellers. A portion of that evaluation should include the 'import tax costs'. I am hoping, in this Forum, to get a ballpark percentage amount for calculations.

Don't know if it would tax on the service going in, or a tax on the remission back to us, or, hopefully not, both?

B. If I understood you correctly, we don't have to create a company in Thailand.

C. As to your question as to why a business would want our product? Yes, it is very similar to the other CMS's on the market in the same way BMW and Mercedez is similar to Lada. They are a both 'cars', but they don't cost the same. The 'first adopters' over here are satisfied and repeat customers who are referring friends and associates.

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