One of the most challenging things for company registration in Thailand is that it can be hard to figure out the capital requirements. That’s especially true if you have a foreign company. The foreign business act from 1999 comes with restrictions on both retail and wholesale businesses. They can’t have any foreign investment, unless there is an exception based on how much capital is there to have.
The overall process is very complicated, and being a part of the exceptions is almost close to impossible. While it can definitely be done, it’s the type of thing that rarely happens and you don’t have to worry too much about it to begin with.
The act doesn’t explain what is the difference between retail and wholesale, which can be one of the issues in this regard. The DBD did address the issue, which is what makes the company registration in Thailand from this perspective a bit more bearable. But there are still some notions that you have to think about and which may have an impact on the entire process.
Selling a product that the foreign company didn’t create on its own via a sales agent will require the agent to obtain a commission. This will all come down to a legal agreement and this will be seen in the retail category. The reasoning behind this is that the entire process is seen as a sale of goods that’s performed directly to the consumer. The sales agent on its own is a retail strategy and one that can be used indefinitely and if necessary, that’s how important everything really is in this regard.
However, the sale of a product that the foreign company did not create on its own via a distributor will be in the wholesale category. This means there are quite a bit of differences between the two notions, and you have to better understand them in order to obtain the results that you would expect. There are certain notions that you have to consider here, which is why hiring a legal professional is the right way to do something like this.
Not only do you get to know how to do company registration in Thailand the right way, but you can also manage everything in your foreign business without the risk of running into any issues. And there can be some issues for sure. It all comes down to identifying what happens in this situation and how you can make the most out of this without having to worry that much about any problems that come in your way.
One thing is certain, using a legal professional will help you quite a lot, so you may want to take that into consideration. It really is a great system that makes a lot of sense to use and one that will help make your company registration in Thailand a whole lot easier and certainly more comprehensive than ever before. Just try to figure out which is the best option to get all the benefits you need.
For more information, please visit Tilalegal.com