Sanet Blog
Your own employee in Thailand: High fines for illegal activities
Having their own employees in Thailand seems to be the cheap and direct way to sales and service in Thailand for many foreign companies. But beware: The law prohibits foreigners from selling their products or even providing consulting or technical services through by themselves or through Thai employees. There is the risk of imprisonment, fines of up to USD15,000 per day and corporate tax for both business owners and employees.
The Thai Foreign Business Act protects Thai traders and marketers from foreign competition. Those who use their own employees to sell their products or services in Thailand turn them into an (illegal) permanent establishment. Draconian penalties are imposed for violating or circumventing the law. This also includes employing sales or service staff through personnel service providers or law firms. Often, the latter themselves are unaware of the risks they expose themselves and their clients through a “payroll” or “staffing service” ” for illegal activities of foreign customers.
In this article, we explain exactly how to recognize a punishable “bogus employment” and how to do it right.
Retirement Visa for Thailand – here´s how!
Many people dream of moving to Thailand once they retire. There are a few things to take care of before that can be done, applying for a Retirement Visa being one of the most important ones. Getting a retirement Visa in Thailand is fairly easy once all the correct documents have been submitted to the competent Embassy. However, there are a few requirements that could cause problems for some applicants.
Mostly the applicants face difficulties with the financial requirements of the retirement Visas, as well as the health insurance requirements. The financial aspects of the Visas aside, there are some alluring sides to holding a retirement Visa in Thailand, multiple-entry travel and Visa extensions only once a year to name a few.
10 years Sanet “Business Unit” for Sales and Service in Thailand
This year, when Sanet celebrates the 10th anniversary of its “Business Unit” (BU), it will look back on the support it provided to 25 mostly international large or medium-sized private companies when they entered the Thai market. Sanet founder Dr. Gunter Denk resumes what still convinces many companies to start sales and service in Thailand through a “BU” at Sanet.
“After having spent 25 years as an entrepreneur of a manufacturing company with strong internationalization, I knew what makes entrepreneurs tick when expanding into new markets,” he begins his description of how to safely enter the Thai market through a ” Business Unit.”
Case Study: That’s how Sanet organized a successful investment in Thailand
Europe and Germany in particular is losing its attractiveness as an investment location. More than 30% of SMEs are considering relocating their production abroad. But where to and how? And which arguments are there in favor of investing in Thailand? And who possesses on-site experience and a team that can help even in difficult situations?
Thailand is traditionally known as a country that has largely stayed out of major world conflicts and now boasts an ultra-modern infrastructure. Southeast Asia is considered to be the fastest growing and politically safest economic region until 2035. An investment in Thailand is safe.
And with Sanet ASEAN ADVSORS, “Pilots” are on site to guide you through a project from planning to start of production.
Loyal Employees in Thailand
Recruiting and retaining loyal employees in Thailand needs cultural sensitivity. Particularly foreigners often complain about the high turnover rate of their employees in Thailand. Indeed, it is not easy to recruit loyal employees in Thailand and retaining them at the same time. Although this matter is not only a challenge in Thailand, there are cultural backgrounds to have a look at, especially in the Kingdom of Thailand. Sanet CREARING CAREERS points out what to look out for when selecting personnel and implementing personnel policies, especially in Thailand.
Case study: Fraud by sales partners in asia
A highly specialized German company in plastic materials has a global market share of 14%. But in Thailand, despite preferential prices and fair margins offered by the partner, the market share remains at only 3%. This is something the management does not want to accept any longer. They hired Sanet to investigate a possible fraud by the distributor.
Recruitment in Thailand – what is the HR Manager’s role?
The HR manager is a key position especially for international companies investing in Thailand. He has important responsibilities in the company, and yet, recruitment in Thailand is not always HR’s strong point.
Many foreigners investing in Thailand are very keen to fill the managing directors by a countryman. This is basically correct, especially in the early days. The cultural proximity of the person in charge to the local management helps to install smooth processes and good leadership.
Therefore, finding an HR manager is one of the most important tasks. But caution is advised: Qualified recruitment in Thailand is often not the HR manager’s business.
I failed …
… because I had not succeeded in a whimsical “Thoughts of the Day” since I had written “Corona- all because of me!” Please forgive me, but it was simply too difficult: Satire lives of absurd exaggerations of observations…
How to make a joint venture a recipe for success in Thailand?
HOW TO MAKE A JOINT VENTURE A RECIPE FOR SUCCESS IN THAILAND
It is easy for foreigners to set up a wholly foreign owned enterprise (WFOE) in Thailand. However, such firms are subject to limitations, for example in trading and providing services. A Joint Venture with a Thai majority, on the other hand, is free to do anything that is possible for Thai companies. Even in such a Joint Venture, foreigners may legally have a majority of voting rights and preferential dividend rights.
Yet this must be properly planned from the very outset and cleverly set up from a legal point of view. Once the company has been established, there is very little that one can do about it.
Sanet Legal, the German lawyers in Thailand for corporate law, explain how to make a Joint Venture in Thailand a successful concept. They also point out legal options that many investors have probably not considered yet.
Evaluation of Employees as a Play Game
Criticism is often seen as injurious by employees because it is often emotional and generalizing. “No one can really ever rely depend on you!” or “If you don’t improve, you’re going to have trouble here!”
Well, what Boss hasn’t let something slip out that sounds similar? And certainly no one seriously expects devaluations such as these, which are general and personal, to motivate employees.
But even factual critiques are often regarded by employees as personal attacks. Even slight criticism is perceived by many subordinates as an assault on their personality. It doesn’t help to say that none of the criticism is meant in a personal way.
CREATING CAEREERS, Sanet’s German-speaking recruitment agency in Thailand, presents an exciting assessment system as a solution.
Sanet reports new Business Units and dialogues with the Board of Investment (BOI)
• Cooperation with Bodo Möller Chemie
• New business unit with IT-M
• Sanet as a guest at BOI
Sanet – Help for small and medium-sized enterprises
Sanet assists SMEs in their investments in Thailand with practice-oriented advice on legal matters, investment promotion and project management.