If you are looking for the right visa for a long-term stay in Thailand, you will probably come across the Thailand Privilege Visa. The new edition of the Elite Visa allows you a 5 to 20-year residence permit and luxurious privileges and services through Privilege Points. This is available to those who are able and willing to pay the necessary fees.
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.