Can my USA Company do Business in Thailand?

[Skins]

I am currently doing my research on expanding my business to Thailand. Looking for some input from anyone who has dealt with this situation.

I understand some of the hoops I must jump through to open a business here in Thailand. Filing paperwork, cash in the bank, hiring Thai's, etc.

I currently sell products online in America and I would like to bring some of these products to the Thai market. I guess this would be considered import/ecommerce/wholesaling. I don't see this being a problem since people ship all over the world on eBay and Amazon without having a physical presence in the country.

However, I would like to hire a few Thai people to sell my products to businesses here.

Would I need to set up a company here? Or would these employees be considered independent contractors employed by my company in the USA? I need Thai people on the ground here to present my products to businesses. I'm not going to open a brick and mortar store or sales office. I just want to be above board and steer clear of any issues.

I would love to avoid the hassle of starting a company here. I'm thinking these people would be considered independent salesmen who purchase their products on net 30 terms from an American company. Does this sound reasonable? I'd like to hear your thoughts.

[AfterLOS]

>>>>>>

However, I would like to hire a few Thai people to sell my products to businesses here<<<<<<

A Thai salesman will not respond well to the schalacking by Alec Baldwin

Picking CLOSERS is an artform, advanced filtration techniques reqd. ....

http://www.youtube.com/watch?v=y-AXTx4PcKI&feature=player_detailpage

[Skins]

Right... I'm well aware of the headaches involved with managing employees. It's hard enough in the States and I would never consider doing it here in Thailand with the language barrier and cultural differences. But I'm thinking a commission only basis it would be OK. I will pay X baht per unit sold. If they get a few good accounts their salary would be very good especially by Thai standards. If they want to lay in a hammock and eat som tam all day that's fine... They will earn 0 baht.

I think it's a great opportunity to make money. It's a quality product that's easy to sell. Can work part time.

BTW I love that clip. Classic.

[AfterLOS]

Right... I'm well aware of the headaches involved with managing employees. It's hard enough in the States and I would never consider doing it here in Thailand with the language barrier and cultural differences. But I'm thinking a commission only basis it would be OK. I will pay X baht per unit sold. If they get a few good accounts their salary would be very good especially by Thai standards. If they want to lay in a hammock and eat som tam all day that's fine... They will earn 0 baht.

I think it's a great opportunity to make money. It's a quality product that's easy to sell. Can work part time.

BTW I love that clip. Classic.

Yeah I agree commission only basis is fine. Best of luck.

[Mrjlh]

Try this link. Should answer most of your questions. Several law firms can also help set up the company.

http://www.thaivisa.com/setting-up-thai-private-company-limited.html

[duanebigsby]

sounds a bit like a scam. You sell crap to the "employees", they sell it to their friends, and get to keep a bit of the money. They sign up more recruits...etc...

That is a 1950's business model. The only one making money is the person at the top.

[BlackJack]

Try this link. Should answer most of your questions. Several law firms can also help set up the company.

http://www.thaivisa.com/setting-up-thai-private-company-limited.html

this ones a bit old now

you can get buy with a minimum of 3 share holders

there is a crackdown on all things now and so what could be achieved before is now strictly by the book

what area do you intend to set up

[khunPer]

Try this link. Should answer most of your questions. Several law firms can also help set up the company.

http://www.thaivisa.com/setting-up-thai-private-company-limited.html

That must be some old information, talking about minimum 7 shareholders - that have been changed to 3 a number of years ago. Furthermore proxy shareholders are not allowed, all Thai shareholders must be able to prove funds.

For OP this part might be most interesting:

»If you are an American, you have no restriction on the number of shareholders that are Americans, as long as the total shareholder count is seven, and Americans own at least 51% of the shares (and they can own all the way up to 100%). The downside is that to obtain coverage under the Treaty of Amity and Friendship, an American-owned company must register with the Department of Foreign Business – which entails and additional 42,000 baht registration fee.«

- Worth to check up, but from up-to-date information; maybe also the possibilities of a representative office.

Do shop around concerning lawfirm expences for setting up a Thai limited company...

Wish OP good luck...

[laobali]

Consider setting it up as an online operation including a decent third party affiliate program to manage sales and commissions. Your only concern would be product delivery and returns/refunds.

[Skins]

sounds a bit like a scam. You sell crap to the "employees", they sell it to their friends, and get to keep a bit of the money. They sign up more recruits...etc...

That is a 1950's business model. The only one making money is the person at the top.

Actually, I am not selling any "crap" to my employees. They would be presenting my products to businesses in Thailand and earning a commission for each unit sold. How is that a scam? It's called sales. It's called business. I am concerned that Thais do not purchase products online in the same volume as Americans and also not speaking Thai or having a Thai language website I am missing out on a HUGE piece of this market. Also, I think most Thai business owners would rather buy from a smiling young Thai salesperson than some farang on a laptop.

I don't want to start a Thai company if I don't have too. I will read the links posted here thanks for weighing in everyone.

[BlackJack]

sounds a bit like a scam. You sell crap to the "employees", they sell it to their friends, and get to keep a bit of the money. They sign up more recruits...etc...

That is a 1950's business model. The only one making money is the person at the top.

Actually, I am not selling any "crap" to my employees. They would be presenting my products to businesses in Thailand and earning a commission for each unit sold. How is that a scam? It's called sales. It's called business. I am concerned that Thais do not purchase products online in the same volume as Americans and also not speaking Thai or having a Thai language website I am missing out on a HUGE piece of this market. Also, I think most Thai business owners would rather buy from a smiling young Thai salesperson than some farang on a laptop.

I don't want to start a Thai company if I don't have too. I will read the links posted here thanks for weighing in everyone.

if you intend to work here then do some reading as penalties for not having the right paperwork are high

there is plenty of material online

[ggt]

Be sure to factor in "tea" money to be handed out to everyone who has to help you along the way...forget your western way of doing business...here the people have been heavily influenced by their Chinese ancestors...they expect to be rewarded...above and beyond the normal fee...for doing their jobs...it is just a way of life that will not die easily...good luck...

[laobali]

Pity that most of them have lost the Chinese work ethic part of the DNA.

[umbanda]

Do you have an English web site I can look it?

[RichCor]

Do you have an English web site I can look it?

The OP is not allowed to post that, per forum rules.

[Mrjlh]

You might also want to research the Duties and taxes on your product. Had a website for calculating this but now I can't find it.

[duanebigsby]

sounds a bit like a scam. You sell crap to the "employees", they sell it to their friends, and get to keep a bit of the money. They sign up more recruits...etc...

That is a 1950's business model. The only one making money is the person at the top.

Actually, I am not selling any "crap" to my employees. They would be presenting my products to businesses in Thailand and earning a commission for each unit sold. How is that a scam? It's called sales. It's called business. I am concerned that Thais do not purchase products online in the same volume as Americans and also not speaking Thai or having a Thai language website I am missing out on a HUGE piece of this market. Also, I think most Thai business owners would rather buy from a smiling young Thai salesperson than some farang on a laptop.

I don't want to start a Thai company if I don't have too. I will read the links posted here thanks for weighing in everyone.

Ok, clarification.

Your OP said independent salespeople purchased the products net 30 days from the American company

.

That would be the old Amway, and cosmetic sales, door to door thing. The company made a lot more than the salespeople who bought the stuff.

If they are indeed commission, that is totally different of course. I think you're after a HUGE piece of a very small market, but if the product were right ie. decent raingear for motorcycles, etc, stuff you can't buy here, I think it's a workable idea.

[Skins]

sounds a bit like a scam. You sell crap to the "employees", they sell it to their friends, and get to keep a bit of the money. They sign up more recruits...etc...

That is a 1950's business model. The only one making money is the person at the top.

Actually, I am not selling any "crap" to my employees. They would be presenting my products to businesses in Thailand and earning a commission for each unit sold. How is that a scam? It's called sales. It's called business. I am concerned that Thais do not purchase products online in the same volume as Americans and also not speaking Thai or having a Thai language website I am missing out on a HUGE piece of this market. Also, I think most Thai business owners would rather buy from a smiling young Thai salesperson than some farang on a laptop.

I don't want to start a Thai company if I don't have too. I will read the links posted here thanks for weighing in everyone.

Ok, clarification.

Your OP said independent salespeople purchased the products net 30 days from the American company

.

That would be the old Amway, and cosmetic sales, door to door thing. The company made a lot more than the salespeople who bought the stuff.

If they are indeed commission, that is totally different of course. I think you're after a HUGE piece of a very small market, but if the product were right ie. decent raingear for motorcycles, etc, stuff you can't buy here, I think it's a workable idea.

The Net 30 terms was just one of many ideas I had. I'm just trying to think of a way to do this without setting up a company in Thailand. I don't have the capital nor do I want to deal with the paperwork for a project that I have not even tested yet... I will contact an attorney here in Bangkok for some more info.

I want to hire Thai sales people. I don't want to break any laws here. I was also considering getting a work permit to stay here and manage the sales people or at least offer guidance. Can my company in the USA sponsor a work permit for me? Might be strange seeing my name on everything.... But when I got a Chinese visa my Company sent me there for business research. Even though my company consists of just me...

BTW I have done my research on custom duties and have some of my products here now. I'd like to get them out of storage and onto the market.

[AfterLOS]

Right... I'm well aware of the headaches involved with managing employees. It's hard enough in the States and I would never consider doing it here in Thailand with the language barrier and cultural differences. But I'm thinking a commission only basis it would be OK. I will pay X baht per unit sold. If they get a few good accounts their salary would be very good especially by Thai standards. If they want to lay in a hammock and eat som tam all day that's fine... They will earn 0 baht.

I think it's a great opportunity to make money. It's a quality product that's easy to sell. Can work part time.

BTW I love that clip. Classic.

Some encouragement for you, Skins.

When I was in Phuket I had the good luck to run into and be accepted into a group of high performance Thais - these are fellows who knock down 100k-400k++ Baht per month, Young fellas all of them, the oldest was 38, youngest 23. They have a hunger for wealth creation and expansion. There were about 60 of these fellas and I was invited to ALL their parties, family gatherings, BBQs etc.

Lost contact after moving to CM.

Its fellas like these who can be your CLOSER base to choose from. They have the hunger, the desire, the work ethic and all speak good enough English, although this might not be a requirement since they will sell in LOS, as per your setup. IMO they would require minimal management.

Were these cats in America they would all come under the category "enterprising" "go-getters"

So bottomline, what you are looking for in terms of independent sales contractors - they are alive and well in LOS. Your project is highly feasible.

[Naam]

Can my company in the USA sponsor a work permit for me?

no.