Export Business Question

[El_D]

I posted this previously in the IT forum, but thought it might get some other responses here.

Purely Hypothetical Question--------Let's say....

I'm a US citizen. I have a bank account in the USA.

I have a merchant account in the USA that deposits my online sales into my US bank account.

I sell certain product(s) made in Thailand online, then, after the sale is made, I go to the Thai merchant and physically acquire this product, and ship it back to the US (or any foreign) customer.

No I haven't done this yet, but it appears to be my only viable business option at this point, as I don't have $50,000 USD (2 million baht) lying around to capitalize a Thai business.

Also, How, oh HOW, would anybody (farang that is) ever be able to start an online business in Thailand unless they were going to slap down $50,000 USD to have a "juristic presence" and then they'd have to wait for a year to be able to get a Thai credit card merchant account, to be legal.

I'm not looking for legal advice here, just some varied thoughts & opinions.

Thanks,

El D

[Richard Hall]

I posted this previously in the IT forum, but thought it might get some other responses here.

Purely Hypothetical Question--------Let's say....

I'm a US citizen. I have a bank account in the USA.

I have a merchant account in the USA that deposits my online sales into my US bank account.

I sell certain product(s) made in Thailand online, then, after the sale is made, I go to the Thai merchant and physically acquire this product, and ship it back to the US (or any foreign) customer.

No I haven't done this yet, but it appears to be my only viable business option at this point, as I don't have $50,000 USD (2 million baht) lying around to capitalize a Thai business.

Also, How, oh HOW, would anybody (farang that is) ever be able to start an online business in Thailand unless they were going to slap down $50,000 USD to have a "juristic presence" and then they'd have to wait for a year to be able to get a Thai credit card  merchant account, to be legal.

I'm not looking for legal advice here, just some varied thoughts & opinions.

Thanks,

El D

Basically, you appear to have the following options:

1. Your online business is (illegally) Thailand based. Illegal because you do not have a tax number/work permit.

Advantages: Cheapest and easiest option.

Disadvantages: Illegal and you always run the risk to get into problems. Furthermore, you can not post a physical address on your website but just something like a phone number, fax number (some sides just even feature a mobile phone number only). Websites not featuring full contact details are surely not the best tools to generate credibility among legitimate potential customers. Also if you buy merchandise within Thailand from well-established wholesalers/factories the deal is subject to VAT. If your business is legitimate you can claim tax refund when exporting the goods while in case it is not you do not have this option and hence have to deal with higher purchasing cost.

2. Your business is based and registered with a physical address in the US.

Advantage: Invoicing is officially done by the Thai wholesaler/manufacturer to this US party and hence the deal is not subject to local VAT. Your business gains in credibility due to its officially featured contact details. Many clients usually favor anyway to have a local contact rather than sending even an e-mail directly to a foreign country.

Disadvantage: You need someone in the US to answer the phone and deal with enquiries and surely have to pay taxes in the US.

3. The business is Thailand based but you employ a Thai person/company. You provide the website and merchandise etc. and they give the name and contact details. Make sure you do this with a trustworthy partner only!

Last but not least try to follow the legal rules and laws at the utmost achievable under your specific circumstances. It surely lets you sleep better and makes you less vulnerable to get cheated by crooks. Business, particularly when money comes into play is a two bladed sword. If you engage into illegal or semi-legal activities please remember you are not just targeted by the authorities but can also easily fall victim to crooks in business and there are heaps of them. Who can you complain to and expect help from when your own activities were not “kosher” either?

Good luck.