Online business in Thailand

[Joe1983]

Hello everyone,

I planning to move to Bangkok soon and would like to start e commerce online selling in Thailand.

The products will be imported from Europe and I know the import duty and vat fees when recieving it

in the port.

I do have a Thai partner in Bangkok and my plan was to let the Thai person open company and then we

start selling online. Until I see that there is positive results from this bussines and its start to go well, then I

could join my Thai partner 49%. Is it possible to do like that?

What if I would like to join 49% from the start? will I be able to recieve work permit by that and would I still need a minimum capital? if so, how much?

Sorry if my question is a bit silly, but what happens to this capital? is it just a deposit that will be untouched? That I can get it back later or use it?

Lastly, what is the advantage and disadvantage letting my partner open company vs me joining 49%?

What would you guys do if were in my place?

Appreciate any help and advice I could get as I am very new to this, thanks in advance.

Kind Regards

Yosef

[sunnyjim5]

A search will reveal many similar questions .

On the basis of what you propose it is very unlikely that you would be able to secure a relevant visa or work permit.

[No1inbangkok]

I'd also re-think your 'letting you partner' set up the business idea.

Once it is set up and trading it will be his/her company with your idea.... Do you trust the person that much?

All the best,

[PattayaPhom]

A search will reveal many similar questions .

On the basis of what you propose it is very unlikely that you would be able to secure a relevant visa or work permit.

Plenty of Foreigners working in BKK, Pattaya and Chiang Mai in online marketing and SEO, all with work permits. As for doing business with a Thai, get ready for a roller coaster ride.

[steven100]

It is extremely difficult to do the way you explained. Most companies set up by for an expat or foreigner are done in house in that you have a lawyer or financial firm set the company up for you.

There is load of paper work and as you know the requirement of quite a large amount of capital.

Your best bet is to seek advice from one of the law firms here in Thailand, they will tell you whats required.

[technologybytes]

Plenty of Foreigners working in BKK, Pattaya and Chiang Mai in online marketing and SEO, all with work permits. As for doing business with a Thai, get ready for a roller coaster ride.

ALL with work permits ? What planet are you on ?

[sir charles IV]

As u state you are new to this. No matter your circumstances/plans ask yourself this "what if I lose everything to do with the business". If you answered "no worries I can absorb it" then go ahead. You're not the first person who has tried to sell things online in Thailand. What's special about your plan? If you're putting your last $$ to set up a business and use it to secure a visa and be with your Thai partner be assured many have tried and failed. It is cheaper and less risky to come as a visitor and enjoy!!!!!

[Gsxrnz]

If you've successfully operated a business in your own country, then by all means go ahead and consider starting one in Thailand. There will be some hurdles, but if you're business wise you will over come them.

However, if you've never operated a business before, never had to deal with the "normal" business requirements and then add on the intricacies of doing business in Thailand, don't speak Thai, and don't have sufficient cash to maintain cashflows in accordance with your budget (I assume you have a budget?), then there are much more enjoyable ways to fritter your money away in Thailand.

[Shiver]

We opened a business in Thailand, but the paperwork was very frustrating, drawn out and slow. After lots of back and forth with the procedures over several months we scrapped it (every product made in Thailand needed approval - your case may not have that issue - so we got them made in EU/USA instead), opened the business in HK where you can own 100% yourself and speak in English, then let your business partner deal with the Thai side of things. It's also more tax efficient (basically zero for anything sold anywhere other than HK, which is taxable at their standard rate).

[bazza40]

If you are experienced in the field of online business, you may be better off excluding Thailand and doing all your business offshore if possible. Don't believe you'll need a work permit in that case, and Thailand really is a minefield for falangs trying to do business.

[BKKdreaming]

is this a "hobby" business or will you need to make enough to live off the earnings ?

[MauiSteveBKK]

Quick Question: You say you want to "import from Europe" and sell the products

in Thailand on-line.

My pee-brain experience (and my wife tells me this) is that Thai people do NOT

like to buy products on-line (in Thailand), due to delivery and post office issues.

Assume My Wife Goes On-Line To Buy Your Product:

+ Web site in Thai?

+ Collect money on-line?

+ Delivery by courier or postman?

+ She have to pick-up at Post Office.

+ What about possible returns?

+ Is your product expirable? What is the "shelf life".

+ Many, many logistical things to consider. Think of them all!

I import from Thailand and sell on USA EBay and Amazon.

I can't imagine doing what you are thinking of doing.

Best of much luck to you.

I wish for your success.

[Joe1983]

Thank you everyone for the replies,

I do trust my partner to some good grade but can’t be 100% of course, but you always want to be extra safe. I lived before in Bangkok for more than 2 years and had several visits as well so I know Thailand to some level.

As for my business, I am confident with it and I want to do it to be able to cover my expenses and hopefully more than that while living in Thailand. It will take some time just like any other online businesses.

<MauiSteveBKK> The website will be in both Thai and Eng.
I am still not sure about the deliveries in Thailand, but will need to do further research, I should be able to provide deliveries by post or other services, just like
here in UK or other countries.
My products are 1 year and above.

I have the option to start a company with my Thai partner 49/51% but skip the work permit from the start because I am not ready yet to provide a capital of 1 or 2 million baht. Where will the capital go to? In my bank account as deposit as insurance that will be untouched or is it the cost/payment of getting a work permit?

What if someday there is some problem between me and my Thai partner, will I have my rights as 49% owner of the company?

I will be in control of the website and the money transfers, its only me that knows the source of our products with the special deals due good connections. So in worst case, my partner can’t carry on without my side. As I mentioned earlier, 100% trust is very hard and especially trusting a Thai but this is one of my insurance if in worst case which hopefully don’t have to go that far.

I am starting with a smaller amount of products , more as a sample and see how it goes, not going to spend much with my first import, but as soon as things starting moving forward, I will definitely get myself work permit and arrange things differently, no doubt.

Kind Regards
Yosef

[sir charles IV]

Good luck. You'll need. There is more reliance on hope than solid evidence in your case. Risky but each to their own. Applaud your dreamer attitude!

[MobileContent]

Thank you everyone for the replies,

I do trust my partner to some good grade but can’t be 100% of course, but you always want to be extra safe. I lived before in Bangkok for more than 2 years and had several visits as well so I know Thailand to some level.

As for my business, I am confident with it and I want to do it to be able to cover my expenses and hopefully more than that while living in Thailand. It will take some time just like any other online businesses.

<MauiSteveBKK> The website will be in both Thai and Eng.

I am still not sure about the deliveries in Thailand, but will need to do further research, I should be able to provide deliveries by post or other services, just like

here in UK or other countries.

My products are 1 year and above.

I have the option to start a company with my Thai partner 49/51% but skip the work permit from the start because I am not ready yet to provide a capital of 1 or 2 million baht. Where will the capital go to? In my bank account as deposit as insurance that will be untouched or is it the cost/payment of getting a work permit?

What if someday there is some problem between me and my Thai partner, will I have my rights as 49% owner of the company?

I will be in control of the website and the money transfers, its only me that knows the source of our products with the special deals due good connections. So in worst case, my partner can’t carry on without my side. As I mentioned earlier, 100% trust is very hard and especially trusting a Thai but this is one of my insurance if in worst case which hopefully don’t have to go that far.

I am starting with a smaller amount of products , more as a sample and see how it goes, not going to spend much with my first import, but as soon as things starting moving forward, I will definitely get myself work permit and arrange things differently, no doubt.

Kind Regards

Yosef

Very straight forward but how much do you allocate for marketing on a monthly basis. SEM, Ads in papers etc? I know Thai companies that sell on the internet and spend 300,000 Baht alone on Adsense and Facebook Ads.

You need to draw up a proper business plan. HK would be a better option and just appoint a Thai company for the Thai operation.

[Joe1983]

Thanks! ..Will definitely think about Hong Kong too. I would spend also a lot on marketing, but not as much as that.

[lvr181]

Joe1983: The ultimate decision must, of course, be yours. But ask yourself this - can I afford to lose all of my investment? There are many TV readers who have experience of "working/business" in Thailand, just heed their advice/warnings.

On a lighter note - Noah was the worlds greatest financier, he floated company when the rest of the world was in liquidation! There is your precedent?

Edited January 13, 2016 by lvr181

[itsuptome]

To answer your original questions, yes it's possible for a Thai national to start a company and later transfer a portion of his shares to a foreigner as long as the company remains Thai majority owned.

To obtain a work permit for one foreigner the company would need to employ at least 4 Thais and show registered capital of at least 2,000,000 baht in the bank. This would be in the bank account of the business and under the control of the company's management.

Exactly how much control you retain personally over that capital is questionable if you have a minority, non-controlling interest in the company - this depends on the corporate structure and bylaws and how your business is organized and would be a question for a lawyer.

As a general point companies in Thailand require a lot of paperwork and there is a pretty high compliance burden so if there's anything which doesn't have to be done in Thailand, you should consider not doing it here.

If you don't fully trust this partner I don't understand why you would want to co-own a company with him. Consider other ways of structuring the business which allow it to operate with a lower trust requirement. For instance perhaps you could keep your product sourcing, marketing etc. operations in your own overseas company and treat him as a vendor of Thai transportation, delivery and logistics services. Pay him to get the product to the customer's door. Then in the worst case scenario if there's a fallout the principal assets of the company remain under your control and you can just go find another vendor.

[djlest]

On 1/12/2016 at 4:06 AM, MauiSteveBKK said:

Quick Question: You say you want to "import from Europe" and sell the products

in Thailand on-line.

My pee-brain experience (and my wife tells me this) is that Thai people do NOT

like to buy products on-line (in Thailand), due to delivery and post office issues.

Assume My Wife Goes On-Line To Buy Your Product:

+ Web site in Thai?

+ Collect money on-line?

+ Delivery by courier or postman?

+ She have to pick-up at Post Office.

+ What about possible returns?

+ Is your product expirable? What is the "shelf life".

+ Many, many logistical things to consider. Think of them all!

I import from Thailand and sell on USA EBay and Amazon.

I can't imagine doing what you are thinking of doing.

Best of much luck to you.

I wish for your success.

tell your wife to check out LAZADA - times are changing!