The “Business Unit” – Your contractual sales & service center in Thailand

In Thailand, it is illegal for foreigners to trade goods or offer services. Exceptions are tied to investments and certain conditions, which are at least too high of a risk for many SMEs.

None of these conditions or mandatory investments apply to Thai majority owned companies. They can economically do “whatever they want”.

The concept of the Business Unit therefore is to initially transfer the sales and service tasks to such a licensed Thai company. A contract is drawn up detailing the tasks to be performed by the Thai company.

For this purpose, a fixed budget is agreed upon, in which all costs are transparently calculated and agreed upon in advance.

This calculation is usually made on the basis of a catalog of factors and services that are compiled by the foreign Principal like a menu.

This business model was designed and perfected by Sanet Trade & Services, a company of the Thai, German and Austrian consulting group Sanet ASIAN ADVISORS, which has been established in Thailand since 2004.

Here, individual agreements can be made on how the data of each Principal will be protected spatially and in IT systems, which qualifications the employees must have, and how they will be trained. The principal may also reject or suggest employees and thus knows who is responsible for his products and services. Through the budget, he can also influence those qualifications.

The employees are accommodated in modern offices, Internet, Wifi and conference rooms are available at no extra cost and one employee, the “Head of Business Unit” is responsible for proper reporting and coordination with the principal.

The process is very simple. The principal receives a monthly statement for the budgeted amount and that’s “it” for him. Everything else is the responsibility of the sales and service provider Sanet Trade & Services Co. Ltd. Only special, agreed expenses and costs will be added.

And the best part of it is the flexibility. Although this contract must be concluded for at least two years, after this period the principal is free to assess his market opportunities and set up his own company or even a manufacturing facility, in which the law firm of the Sanet Group as well as the market researchers of the SANET ASIAN ADVISORS will even assist him.

No wonder that in the last few years 24 companies have found their way into Thailand in this manner, and in the past year alone two of them have decided to undertake the investment in their own company.

For further information please visit our website or book a personal meeting free of charge online here.