by Sabrina Bohn | Oct 14, 2023 | Sanet Blog (Legal), z_Blogs company formation in Thailand
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.
by Sabrina Bohn | Jun 20, 2023 | Sanet Blog (Legal), z_Blogs Business Law & Joint Venture, z_Blogs company formation 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.
by Axel Denk | Sep 19, 2022 | Sanet Blog (Legal), z_Blogs site evaluation & construction tender
You too are allowed to build a house in Thailand. However, certain legal conditions must be considered.
by Axel Denk | Aug 24, 2022 | Sanet Blog (Legal), z_Blogs Visas & Work Permits
Thailand grants ten-year visas to high-skilled experts, to the rich and to “work nomads”. But there are some hurdles to jump across.
by Axel Denk | Jun 27, 2022 | Business Law, Sanet Blog (Legal), z_Blogs Distribution in Thailand, z_Blogs Investment Consultancy
Thailand’s Foreign Business Act (FBA) has been criticized by foreign investors for 50 years already. It allows trade and services for foreigners and foreign-controlled companies only to a very limited extent. However, especially now in times of U.S.-China economic war and military turmoil in Europe, entering the market in Thailand, the hub of emerging Southeast Asia, is actually a “must do” for Western and even Chinese companies.
