Export/ Import Business -> Obtain TRADING LICENSE in Thailand or in Germany?

[Seb Bu]

I´m thinking about starting an import-/ export- business between Thailand and Europe (Germany).

My main product line will be CLOTHING and probably accessories, produced or directly PURCHASED IN THAILAND as well as in GERMANY and ENGLAND.

The products will be SOLD VIA ONLINE TO GERMAN (END) CUSTOMERS and later also to other European countries.

My questions: - With that constellation is it possible to register the business in Thailand and not in Germany?

- If so would you say it is cleverer to do so? What would be the advantages from your point of view?

I´M HAPPY TO RECEIVE USEFUL LINKS!

I´m currently student in Bangkok and my main ¨team¨ will also be there.

For everyone who wants to know I do have experience in that kind of field, so PLEASE DON´T GIVE ME ADVICE OR COMMENTS ON THE IDEA ITSELF!

Many thanks in advance!!!

[GrantSmith]

Are you planning on this being a legitimate business venture?

What will your percentage of ownership be?

Are you planning to work in the company?

If yes, do you have the necessary finances (2 million baht registered capital) to fund your work permit (4 thai nationals) and will you meet the minimum requirements?

What would be the general weight of your consignments to Germany, would it be air freight or sea freight?

If you sending these consignments to the end user in Germany, it wouldn't make much sense to register as an import company in Germany, unless payments are going into a German bank account.

How much thought have you really given this? Sounds like, on the back of previous threads you've started, that this all just seems to be a bit of thinking out loud...

[TobiasML]

There are a few things to consider before you start such a venture.

First you need to ask you the questions asked by GrantSmith. If you want to do a legit business and import/export out of Thailand you will need to have a company setup. This company will need to be VAT registered due to import/export and the resulting VAT refunds.

This is for legit business and not a business sending small stuff through Thai Post. Any logistic company will require and export/import license from your company to be legally allowed to send any products out.

As always there are ways around it by using a company who has already an export license.

For Germany you will need to consider the purpose. Do you want to import in bulk or send the products directly from Thailand to the end customer.

If you want to import in bulk you will need to have at least a GBR registered, which will allow you to get the benefits of the MWST refund.

For clothing you will need to consider the contingent which is imposed on clothing.

If you want to ship directly out of Thailand to the end customer you have to be aware that the end customer will be responsible to pay the duties and taxes on their side. They will not be able to circumvent this if you ship with UPS, DHL, FEDEx or any other logistic company.

In most cases if you ship with Thailand Post there will be no Tax or Duties applied as long as the amount is below EUR 400. But it does not guarantee that the customs will not stop the shipment and impose it.

In case you ship directly you will not need a company in Germany or Europe. If you want to ship in bulk you will need to consider it. If it is going to be your own money and no partners go with a GBR as it is the cheapest form in Germany.

If you need to have a company in Thailand with partners there is only one recommendation, which is a Co., Ltd. Shareholders will need to be 51% thai and only 49% foreign owned. That means you will never be truly the owner of a Thai company. Lawyers are able to draft the contracts an shareholder structure to provide you with a certain percentage of security but you will need to be careful with whom you want to go into business.

Hope this helps. If you need more info send me a pm.

[johnabraham]

One can use Global4PL import export services in order to obtain all necessary import export permits. It helps businesses to comply with international trade compliance.