My Thai partner is starting a sole proprietorship selling Thai goods online. I expect most of his customers will be overseas. What exactly does he need to be legal and above board? At what level of sales will he need to pay income tax and start collecting VAT on local sales? What about a fictitious name for the business? Does that need to be registered somewhere? Thank you in advance for any suggestions.

how are you planning on shipping ?

That will be the big problem because the cheapest postage takes a long time and customers do not want to wait 3-4 weeks or longer

Get it registered to be legal. It will be a incorporated commercial business owned and operated by a single natural (Thai) person; the proprietor. Once registered, you use the registered company name for all transactions. The tax will be paid at personal income tax rates. You are required to collect VAT but will be exempted if annual income does not exceed 1.8M Bt.

Be careful before you provide any help as anything towards a business, unpaid or not, online or real world, even voluntary work, will require a Work Permit.

That opens more requirements - job title, Thai staff, taxes etc, so think very carefully before going down this route.

That (important) aside, best of luck to him.

Thank you for the replies. Is it simpler to set up If he does business under his own name rather than a fictitious name?

Anybody can buy and sell as they wish online. What is done in private is private.

A lot of Thai people don't bother registering their business dealings. Everything is either cash or deposited into a savings account in their name.

No business or accounting records, no tax, no VAT. No anything.

Things only start to get complicated if they deal with large businesses that require more documentation.

A lot of Thai people don't bother registering their business dealings. Everything is either cash or deposited into a savings account in their name.

No business or accounting records, no tax, no VAT. No anything.

Things only start to get complicated if they deal with large businesses that require more documentation.

I agree with your post. However you've grossly understated the position.

"A lot" should actually read most, or the vast majority.

Are you male or female?

Are you male or female?

Why?

Very different regulations apply if your Thai partner is male or female.

Legally married or not?

Can make a big difference.

Very different regulations apply if your Thai partner is male or female.

Legally married or not?

Can make a big difference.

He is my partner in life, not business. Not married. His business will be a sole proprietorship.