Options For Operating An Oversea Business While Living In Thailand

[SMP101]

Hi all,

Long time lurker first time poster as they say

I am currently in the process of putting my own company together and would like to remain living here in Thailand. Currently living on a non 'O' visa.

I will be selling my services to overseas clients, using an overseas sales team, collecting payment online into an offshore bank account. What I would like to do however is use a Thai based company to actually do the production work. So all sales are made outside of Thailand but the product is made and shipped from here to clients, which they have already paid for to my Co. outside of Thailand.

Would my best option be to open a Thai Ltd Co. or contract to a Thai company?

[mjnaus]

I guess that would be depend on the nature of your business. Are there any companies operating in Thailand that you could partner up with? If so, I would say that would make take off faster.

However, if you're going to be working here, you will need a work permit, so either the Thai company you partner with will have to provide the work permit or, if they don't want this, you won't have much other options then to setup your own company and get yourself a work permit.

[Soutpeel]

I guess that would be depend on the nature of your business. Are there any companies operating in Thailand that you could partner up with? If so, I would say that would make take off faster.

However, if you're going to be working here, you will need a work permit, so either the Thai company you partner with will have to provide the work permit or, if they don't want this, you won't have much other options then to setup your own company and get yourself a work permit.

To me the simplest solution would be to get Thai company to provide you with a WP, although you are not working for them, it could be used as a vehicle for WP, you would of course pay your own tax.

Would think the Thai production company would go for this if you are providing them with significant business.

Alternative may be a representative office for your overseas company in Thailand, with route would suit what you are trying to do and you dont have the same requirements as a Thai limited co...ie number employees for a WP etc..

I would strongly suggest you get a WP which ever way you go, you are acting as a middleman and somewhere along the line your production company could decide to cut out the middle man so to speak....and not having a WP could result in a phone call to immigration, if you know what I mean..

I would talking to a law office and discuss the best arrangement fo you, perosnally think a represetative office would be the way to go...you are purchasing Thai product for export..

[SMP101]

Thank you for the replies.

Interesting about the rep office however I am not really exporting an actual Thai product. An example of my sales cycle would be similar to;

Someone paying me to build a website, paying the funds into my offshore company account and me then paying a Thai to design/build website.

At first I would need to employ around 3-4 Thai staff, with the aim of adding an extra 3-4 over the first year.

I don't think there is much risk of a Thai company stealing my clients (if i contract out the work) as it is a lot more involved than building a website and the clients pay for a lot more than just the production of service.

It would be like saying a printers could steal clients from a window and door installers, becasue they have been printing brochures for the last year. However I do want to stay legal here so maybe setting up the Thai Co. is the way forward, but where is the line drawn with what counts as work? Can i open the Thai Co. and conduct business with another Thai Co. on just a B visa?

[mjnaus]

Thank you for the replies.

Interesting about the rep office however I am not really exporting an actual Thai product. An example of my sales cycle would be similar to;

Someone paying me to build a website, paying the funds into my offshore company account and me then paying a Thai to design/build website.

At first I would need to employ around 3-4 Thai staff, with the aim of adding an extra 3-4 over the first year.

I don't think there is much risk of a Thai company stealing my clients (if i contract out the work) as it is a lot more involved than building a website and the clients pay for a lot more than just the production of service.

It would be like saying a printers could steal clients from a window and door installers, becasue they have been printing brochures for the last year. However I do want to stay legal here so maybe setting up the Thai Co. is the way forward, but where is the line drawn with what counts as work? Can i open the Thai Co. and conduct business with another Thai Co. on just a B visa?

I am actually more or less in the same business as you; we use the following setup:

We have our own company here in Thailand that does the marketing, sales and management. The Thai company invoices the foreign/Thai (very few, mostly work with foreign businesses) and sources the production and actual work to our company in Hong Kong which handles the actual work.

I guess for your situation you could leave the Hong Kong company out of it (however, in that case you will likely end up paying more taxes here in Thailand).

Edited June 4, 2010 by mjnaus

[Soutpeel]

However I do want to stay legal here so maybe setting up the Thai Co. is the way forward, but where is the line drawn with what counts as work? Can i open the Thai Co. and conduct business with another Thai Co. on just a B visa?

There is no line...you are working...you need a WP....To stay legal you need to open a Thai company, if not married to a Thai national, you need to employ 4 people and capitalise your company for THB 2.0 million.

If you are "resident" in Thailand, the minute you do any form of business as descibed above you are working...you cant do this just on a B visa

[SMP101]

Again thank you for the replies.

I think my best option is to sub-contract the work out or I am going to be paying way to much tax and additional overheads.

As far as me working here goes it would be nothing more than instructing my manager overseas via email/phone to contact the Thai co. and pay any bills from our company in Europe.