Better to be well prepared than quickly established
“You want to start a 100 % foreign owned company in Thailand? No problem, takes a day!” These and similarly tempting promises are quickly obtained when seeking legal advice in Thailand.
What is offered here “loosely” and often for a fee of less than 2,000 EUR, however, often ends in disaster for the interested company or the founder. In the end, all that remains is a costly dissolution or restructuring.
Of course, every foreigner in Thailand can found a 100% foreign owned company. However, one must also tell him which business he is then allowed to do with his company. For example, the Foreign Business Act (FBA) prohibits services and trade for companies with a non-Thai majority of shareholders. A work permit for the company owner is also not a matter of course. There are strict conditions for this as well.
So, the question to a lawyer in Thailand should not be; “How long does it take to set up a company and what does it cost? The main question should be: “What do I have to do to make my business in Thailand legal?”
At Sanet Legal Ltd., the German law firm in Bangkok, the interested party first receives a questionnaire in which important questions about his project can be answered in a multiple-choice procedure. This is followed by advice on the correct legal form, the regulations on capital, shareholders and directors and any other necessary applications for approval of the project.
As a result you can be sure that you have chosen the right company structure.
Free Online Consultation
Preparing business decisions in Asia despite travel restrictions
Many companies have suspended business trips to Asia because of the corona virus. Nevertheless, talks to prepare important decisions do not have to wait. Sanet Legal Ltd. and the German consulting group SANET ASEAN ADVISORS therefore offer a free online consultation hour until the end of March 2020 for questions about company formation, sales, investment or procurement in Thailand and ASEAN. Usually this takes place on Thursdays from 08:00 h to 12:00 h CET (Central European Time).
Just send an e-mail to firstname.lastname@example.org with the keyword “ONLINE CONSULTANCY” and your contact details and you will receive a short-term appointment proposal for this consultation.
Be cautious with the “RepOffice” in Thailand
The consequences are far-reaching: prison sentences and fines for those responsible for the Representative Office and tax treatment as a (prohibited) permanent establishment. This can then make all sales of the parent company to Thailand taxable. A nightmare for financial management at home in Europe will then come true.
Thailand offers various ways to support the parent company in the country with sales or even to obtain a Foreign Business License directly. So why continue along the dangerous path via a representative office?
If you maintain a “RepOffice” in Thailand or are planning a sales representative office, ask Sanet Legal Ltd. at email@example.com for the right way to legally organize your activities in Thailand.