Setting Up A Thai Company To Trade With Your Homeland Company

[CarlBkk]

Hi, I'm beginning to think very seriously about the pros and cons of starting up a Thai company to do business with my British company (sole trader). The UK business currently imports from Thailand dealing direct with multiple suppliers here and I reside in Thailand and run it (returning thrice a year during the busiest periods). UK business has been going steadily for 4 years.

There are a few reasons why I'm considering going through the hassle of starting up a Thai company when things are already running smoothly:

To reduce income tax for the UK company by passing charges/stock cost through the Thai company.

To reclaim VAT on exports in Thailand and also claim VAT on imports.

And the main reason, to work towards showing profit in order to obtain a mortgage in Thailand.

If anyone is running such as operation I'd be very grateful for any pointers or matters to consider before beginning. I'm especially curious as to how mortgages for foreigners work here - on average how long would it take and what kind of salary/turnover would you have to show to be considered for a 3-5 mill baht mortgage?

Thanks.

[raro]

It would depend a it on what kind of products you are exporting. Textiles for instance require a C/O to get into the UK and a Form A to reduce import duties. Form A can only be issued by the manufacturer, so if you are a trader in between you cannot issue it! C/O regulations have also tightened, you must be member of the Thai chamber of commerce and get from them a license to issue C/Os. Conditions apply!