Acting As Liason

[tpiety2]

I have been asked by a friend to act as liason with and place orders with a Thai manufacturer for his US company. Then to verify product, packaging, quality, quantity etc. and to oversee procuring and shipping the product to the US.

I live in Thailand on an O-A visa and extension of stays. I have not been hired or paid or done anything as yet. If things go as planned orders would be for over a million dollars per year.

Before I consent to do anything I need to know the legalities involved and my position as a long stay retired expat. Would I have to change my status or obtain a WP etc..

I would of course become a paid officer of the company at some point. I came here to retire so I am not keen on working but my friend needs help and it could become profitable for me in the event things went as he plans.

[Sunbelt Asia]

You would be required to obtain a non-B visa (or non-o if married to a Thai spouse) and a work permit. Working on a non-OA is not permitted. You could set the company up as a representative office since you would be engaging in activities that would earn limited revenue. Representative offices are restricted to :

1. Searching for local sources of goods or services for its head office.

2. Inspecting and controlling the quality and quantity of goods procured by its head office.

3. Providing advice in various fields relating to products directly sold by its head office to local distributors or consumers.

4. Disseminating information about new products and services of its head office.

5. Reporting to its head office on local business developments and activities

A representative office is required to remit into Thailand a total of Baht 5 million over a period of five years, with Baht 2 million being remitted within the first year to cover operating expenditures. These funds may not later be remitted out. The capital may be used for normal working capital requirements, e.g. to pay operating expenditure such as salaries and rent.

Another alternative to that would be to set up a Thai Limited Company with minority ownership, which would not need to have 5 million Baht remitted, but would need 2 million Baht in capitalization and 4 Thai employees needed in order for you to obtain a work permit.

The benefits of a representative office is that it can be owned 100% by the foreigner. If you are simply exporting then you can also own it 100% as a foreigner.

There are several requirements for a foreign company to set up a representative office in Thailand, if you wish to go into detail, please feel free to contact Sunbelt for a free consultation.

[sunbelt][/sunbelt]