Market entry has to be just right: legally solid and oriented for success

A market-oriented structure, regard for local decision-making processes and efficient organization are crucial to ensuring a successful market entry. What is more, legal barriers in place for distribution activities in Thailand and ASEAN are quite severe. With Sanet, you receive consulting from experienced market specialists as well as the legal experts of Sanet Legal, making sure you are on the right path with a clear budget and concept which we design together.

Your Sales Subsidiary in Thailand

In Thailand and most other countries in ASEAN, both the sale of goods and the provision of services is forbidden to foreign companies or individuals, in some cases punished by imprisonment. So expect to go through an intensive examination process.

Prohibited diversions such as the misuse of a representative office, the setting up of a payroll service for hiring local employees or even allowing a Thai “strawman” to act as majority shareholder, are monitored closely and carry heavy legal and tax consequences.

We guide to your legal entity taking responsibility for your sales in Thailand. We also determine the requirements for getting a Foreign Business License, capital endowment – which is necessary for exemptions – and other corporate structures such as cross shareholding.

We also offer concrete suggestions regarding joint ventures or special forms of contractual cooperation with Thai companies.

Sanet as your Sales Office

Sanet Trade & Services also has a Thai-German team of engineers at their disposal who will gladly take on direct responsibility for distribution across Thai borders. As your regional sales office, we take care of the recruitment, qualification and handling of distribution partners in the Asia-Pacific region at manageable prices. Providing their assistance during the distributor search are the experts of our affiliate Sanet ASEAN ADVISORS, who have more than 10 years’ experience in the professional recruitment and qualification of quality partners in business.

The business units in our Sanet Trade & Services trading house are the quickest and most cost-effective path to market entry.

Special Authorizations from the BOI

The Thai Board of Investment (BOI) or the funding authorities of other ASEAN countries may establish a legal foundation for domestic distribution within the scope of investment promotion. For example, in Thailand they have the Trade and Investment Support Office (TISO) for mechanical engineers, the International Trade Center (ITC), which makes Thailand the Hongkong of Southeast Asia, as well other special funding programs for logistics or other types of high-level consulting.

Of course, every manufacturer in Thailand may sell goods produced domestically without impediment, obtaining, thanks to the sponsorship of the BOI, both the right to ownership of company land as well as additional funding.

By establishing a Sanet business unit which today has six employees, Rutronik GmbH were able in only two years to prevail against our competitors in Thailand. Today we are firmly established in the market.

Peter Klöpfer

Head of Rutronik Business Unit

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