Helping a Thai to start an e-commerce business

[PocoLoco]

I'm going to help a Thai national who already owns 2 brick and mortar businesses to start an additional e-commerce business.

I know all about e-commerce but nothing about the Thai legal system.

A few key questions are;

- Does an e-commerce business need to be licensed in Thailand? I read something about a mandatory government certification program for e-commerce businesses.
- Is an e-commerce business allowed to run under sole proprietorship? The Thai doesn't want to deal with any other owners or nominees.

- Does the government offer any incentives to e-commerce companies? And what about taxation?

If anyone here has a LEGAL online business, please let me know.

Thanks.

[gandalf12]

I don't have any experience per se but I would guess if you are helping him to start a e-business then would would effectively be working and you know what is going to follow. Yes you would need a WP or you could be in trouble with Immigration.

If anyone has facts that disprove what I have said please post as I also would like to know

[verito]

If your work is connected to Thailand[you export from here,you import to here,you sell here] you must have a WP.

If no,you can work without work permit.

[buythisdashcam]

Legal in Thailand for a Thai, so funny, even in US we do not declare what the government cannot find.

[gandalf12]

Legal in Thailand for a Thai, so funny, even in US we do not declare what the government cannot find.

Does anyone anywhere declare what the government can't find? I doubt it

Edited May 2, 2016 by gandalf12

[yellowboat]

Will he only be doing business in Thailand ? Most Thai companies keep foreign income off shore.

[PocoLoco]

My role is only advising, active work will be outsourced. I'm not going to get a WP for that lol. I do not receive any income, just sharing knowledge.

Yellowboat, local and international. If the international sales grow beyond a certain limit then the company will be registered offshore.

[bwpage3]

To the OP

Have you ever done any research to see what, if any Thai products sell on e-commerce?

That might be the first step before wasting any time and effort.

In today's e-commerce world, Amazon can deliver in many areas the same day for free with Amazon Prime.

I think you would hard pressed to have something to sell that is not already being sold.

Not sure how many people would want to wait for things shipped from Thailand plus the fact most people think there is no customer service or recourse if the product is defective or poor quality.

[PocoLoco]

bwpage3, thanks for your concern but international (eurozone) e-commerce is my specialty. Been active in the branche for over 10 years.

[Koosdedooes]

My role is only advising, active work will be outsourced. I'm not going to get a WP for that lol. I do not receive any income, just sharing knowledge.

Yellowboat, local and international. If the international sales grow beyond a certain limit then the company will be registered offshore.

And imparting knowledge with or without payment falls squarely within the defintion of working in Thailand, so for piece of mind a WP would be required, volunteers typically impart knowlege without payment and they most certainly require a WP

[fireplay]

Wow pocoloco I want to help my girlfriend to get set up doing ecommerce drop shipping so she can travel around the world with me and have an income as well...

Any advice on how to do it?

[hoffy66]

bwpage3, thanks for your concern but international (eurozone) e-commerce is my specialty. Been active in the branche for over 10 years.

Sounds to me that you are going to be the active person in this venture, and you are just using a cover..

[PocoLoco]

Hoffy66, it might sound strange to you, but i like to help people who i care about.

I have no active role in the company, nor do i have any plans to start a business in Thailand myself. I'm pretty happy with my business in Europe thank you.

Anyway, i have scheduled a meeting with an attorney to understand the regulations a bit better. I will report back when i know more.

[yellowboat]

Yellowboat, local and international. If the international sales grow beyond a certain limit then the company will be registered offshore.

Paypal is not much of a challenge to set up. He should have a talk with the bank first.

[mike324]

I would imagine the Thai already have a business license for the brick and mortar store, an e-business bringing the brick and mortar store online could operate on the existing license. Yes you can run on sole ownership, why wouldn't it be able to? This is a Thai national running his/her own business.

[RWA]

My role is only advising, active work will be outsourced. I'm not going to get a WP for that lol. I do not receive any income, just sharing knowledge.

Yellowboat, local and international. If the international sales grow beyond a certain limit then the company will be registered offshore.

you're "advising/consulting" - so, you're working without WP, regardless whether you're paid or not ...

(I don't mean to be a bi*ch but that's the law, no kidding)

Edited May 3, 2016 by RWA

[buythisdashcam]

Sorry but it's the perfect statement of someoone who never did anything in his life and especially business, your comment is RI-DI-CU-LOUS

People buy things from anywhere in the world and so many people do not even check where is located the shop. etc. so yes, anything can sell anywhere and only labour who I know who will always only be employees could think like this.

To the OP

Have you ever done any research to see what, if any Thai products sell on e-commerce?

That might be the first step before wasting any time and effort.

In today's e-commerce world, Amazon can deliver in many areas the same day for free with Amazon Prime.

I think you would hard pressed to have something to sell that is not already being sold.

Not sure how many people would want to wait for things shipped from Thailand plus the fact most people think there is no customer service or recourse if the product is defective or poor quality.

[buythisdashcam]

Hoffy66, it might sound strange to you, but i like to help people who i care about.

I have no active role in the company, nor do i have any plans to start a business in Thailand myself. I'm pretty happy with my business in Europe thank you.

Anyway, i have scheduled a meeting with an attorney to understand the regulations a bit better. I will report back when i know more.

so funny, meet for no reason a lawyer who certainly know nothing

Edited May 4, 2016 by buythisdashcam

[buythisdashcam]

You start from far...

First she should try to know if she is even able to write a full sentence correctly before even trying to do business.

Successful dropshipping biz is the dream of the lazy who think that you can earn online without doing anything.

Wow pocoloco I want to help my girlfriend to get set up doing ecommerce drop shipping so she can travel around the world with me and have an income as well...
Any advice on how to do it?

[timendres]

Sorry but it's the perfect statement of someoone who never did anything in his life and especially business, your comment is RI-DI-CU-LOUS

People buy things from anywhere in the world and so many people do not even check where is located the shop. etc. so yes, anything can sell anywhere and only labour who I know who will always only be employees could think like this.

To the OP

Have you ever done any research to see what, if any Thai products sell on e-commerce?

That might be the first step before wasting any time and effort.

In today's e-commerce world, Amazon can deliver in many areas the same day for free with Amazon Prime.

I think you would hard pressed to have something to sell that is not already being sold.

Not sure how many people would want to wait for things shipped from Thailand plus the fact most people think there is no customer service or recourse if the product is defective or poor quality.

Not sure which part of the post you are referring to. But I can say that if you are selling a product from Thailand, that must be shipped to the States, and Amazon is selling the same (or equivalent) product, you are fighting an uphill battle. Amazon Prime will deliver that same product in one or two days for free. So you would need a serious price advantage to compete with that. Alternatively, if you are drop shipping from the US, or using Amazon's drop shipping service, you can eliminate this issue, but then need to be able to place inventory in the US, which requires capital.

As for the comment about "customer service or recourse", this is a legitimate concern, but can also be an advantage. Some products will actually have more credibility if they are coming direct from Thailand, for instance genuine Thai products that are not readily available outside of Thailand. The same applies for the wait time on shipment. The customer's confidence in the seller can be established with well known methods, but it does need to be addressed.

[buythisdashcam]

As you do not know what you are talking about and keep repeating the stupid things that only people who know nothing repeat, I won't reply, but just understand that you are so wrong about EVERYTHING.

Sorry but it's the perfect statement of someoone who never did anything in his life and especially business, your comment is RI-DI-CU-LOUS

People buy things from anywhere in the world and so many people do not even check where is located the shop. etc. so yes, anything can sell anywhere and only labour who I know who will always only be employees could think like this.

To the OP

Have you ever done any research to see what, if any Thai products sell on e-commerce?

That might be the first step before wasting any time and effort.

In today's e-commerce world, Amazon can deliver in many areas the same day for free with Amazon Prime.

I think you would hard pressed to have something to sell that is not already being sold.

Not sure how many people would want to wait for things shipped from Thailand plus the fact most people think there is no customer service or recourse if the product is defective or poor quality.

Not sure which part of the post you are referring to. But I can say that if you are selling a product from Thailand, that must be shipped to the States, and Amazon is selling the same (or equivalent) product, you are fighting an uphill battle. Amazon Prime will deliver that same product in one or two days for free. So you would need a serious price advantage to compete with that. Alternatively, if you are drop shipping from the US, or using Amazon's drop shipping service, you can eliminate this issue, but then need to be able to place inventory in the US, which requires capital.

As for the comment about "customer service or recourse", this is a legitimate concern, but can also be an advantage. Some products will actually have more credibility if they are coming direct from Thailand, for instance genuine Thai products that are not readily available outside of Thailand. The same applies for the wait time on shipment. The customer's confidence in the seller can be established with well known methods, but it does need to be addressed.

[timendres]

As you do not know what you are talking about and keep repeating the stupid things that only people who know nothing repeat, I won't reply, but just understand that you are so wrong about EVERYTHING.

Sorry but it's the perfect statement of someoone who never did anything in his life and especially business, your comment is RI-DI-CU-LOUS

People buy things from anywhere in the world and so many people do not even check where is located the shop. etc. so yes, anything can sell anywhere and only labour who I know who will always only be employees could think like this.

To the OP

Have you ever done any research to see what, if any Thai products sell on e-commerce?

That might be the first step before wasting any time and effort.

In today's e-commerce world, Amazon can deliver in many areas the same day for free with Amazon Prime.

I think you would hard pressed to have something to sell that is not already being sold.

Not sure how many people would want to wait for things shipped from Thailand plus the fact most people think there is no customer service or recourse if the product is defective or poor quality.

Not sure which part of the post you are referring to. But I can say that if you are selling a product from Thailand, that must be shipped to the States, and Amazon is selling the same (or equivalent) product, you are fighting an uphill battle. Amazon Prime will deliver that same product in one or two days for free. So you would need a serious price advantage to compete with that. Alternatively, if you are drop shipping from the US, or using Amazon's drop shipping service, you can eliminate this issue, but then need to be able to place inventory in the US, which requires capital.

As for the comment about "customer service or recourse", this is a legitimate concern, but can also be an advantage. Some products will actually have more credibility if they are coming direct from Thailand, for instance genuine Thai products that are not readily available outside of Thailand. The same applies for the wait time on shipment. The customer's confidence in the seller can be established with well known methods, but it does need to be addressed.

Your arguments are so compelling, who could have any doubt? Surely not those of us who are running e-commerce sites every day...

[PocoLoco]

Little update, my god i feel like that guy in the movie "idiocracy". Staff at banks, government etc. are very lazy and stupid, i have to emphasize on STUPID.

It takes so long and so many attempts to get answers to simple questions! What would have been done in two days in my home country has already taken up two weeks in Thailand.

I'm helping this person out with the company, but never ever will i start a business in Thailand myself, their incompetence really has me buggered. FFFFF************

[Tomtomtom69]

My role is only advising, active work will be outsourced. I'm not going to get a WP for that lol. I do not receive any income, just sharing knowledge.

Yellowboat, local and international. If the international sales grow beyond a certain limit then the company will be registered offshore.

For consultancy type work, you won't need a work permit. Technically a non-B visa, such as a non-B multi-entry may be required but if you are just advising and not receiving a salary, it's not a big deal.

[Tomtomtom69]

Will he only be doing business in Thailand ? Most Thai companies keep foreign income off shore.

Most? Highly doubtful. A few of the larger ones? Likely.

[Tomtomtom69]

My role is only advising, active work will be outsourced. I'm not going to get a WP for that lol. I do not receive any income, just sharing knowledge.

Yellowboat, local and international. If the international sales grow beyond a certain limit then the company will be registered offshore.

you're "advising/consulting" - so, you're working without WP, regardless whether you're paid or not ...

(I don't mean to be a bi*ch but that's the law, no kidding)

Nah. There is a visa called the non-B multi entry that is specifically designed for such cases. A short-term consultant, especially one who DOESN'T get paid, does NOT require a work permit here. Foreign consultants come on business trips to Thailand to give advice every day, and I know some of them. I also know that NONE of them have a work permit and NONE of them would likely be given one by the labour department either. Especially if they're only here for a short time and coming and going.

[PocoLoco]

I'm close to giving a middlefinger to the govt and just let my friend incorporate the whole thing offshore or outsource it to a lawyer.

Need to make a reservation for the business name, fine. Signed up at dbd.go.th. No email confirmation received but am able to login. Nowhere on the site is anything mentioned about where to make the reservation.

Call to their customer service as mentioned on the website, number doesn't connect / unavailable. Googled for instructions, nothing. Googled for an alternative number, got one but employees kept forwarding me to others until the last number didn't work.

Tried again on a different portal, but it didnt work with the latest firefox or IE. No, i had to find out how to make it compatible in IE with old websites that use IE 8 standard.... IE8!!!!!!!!

After 1 hour friend found someones blog with a step-by-step instruction. We should be on another portal, ok fine. Login again, filled in the form and tried to save it / send it. CONNECTION TIME OUT! Tried a few times until success.

This took me nearly 3 hours.

How is this country ever able to go forward with such terrible outdated and non-functional e-services? Not to mention the lack interest from government employees?

No, i will personally never start or do business in Thailand.

[PocoLoco]

[jadee]

Out of interest PocoLoco, what type of e-commerce business are you trying to help set up? I'm interested in how people make money in this way. Do you mean selling products online though another site/company or setting up your own website? I'd like to know how this arrangement works. I buy from Chinese websites like Alibaba and Aliexpress and all the vendors there sell at rock bottom prices with free shipping anywhere in the world. I wondered how they did it but then read that the Chinese government gives a tax rebate to companies that export. Interested to know how you sell in Thailand. Thanks

[PocoLoco]

Yes, by setting up own online shops/websites but it doesn't stop there. Setting up a shop is easy, it's the things around it that needs careful planning. Think about SEM like google adwords + retargetting campaigns, SEO, social marketing, advertorials, conversion optimization, email campaigns etc. etc.

Selling on third party websites like ebay is not very profitable (to this business).
Many sellers on Alibaba/alixpress are manufacturers, low taxation + affordable shipping makes it possible to sell at rock bottom prices.