Doing Business in Thailand

Thailands booming economy has encouraged me to begin a tender furrow relationship with a highly recognized Thai company. I shaper a line of products for the sugar processing industry. I recently gestural a one- year contract with Thai Chemiclas and Engineering Co. Ltd., located in Bangkok, to be my exclusive fitative in the Thailand ara. Thai Chemicals and Engineering go forth promote my product line and get it into the all the sugar move in the area. They will purchase two containers per month for which we have negotiated a compatible price.The containers will be shipping out of Savannah, Georgia with a final destination of the port of Bangkok. The shipping terms will be CIF Bangkok. I decided to subprogram a local company to represent my product line for various reasons. First of all, I need soul that knows the culture and business environment who has an established relationship with other locals. once my products become known, I would like to establish a factory in Thail and. Therefore, I found it necessary to gather all the information required to begin a new business in Thailand.Although business feces be 100 % owned by impertinent investors, some are re serve upd for 51 % Thai possession. People of any nationalities can enroll in ownership to varying degrees through sole ownership, a particular companycorporation, an ordinary partnership, a limited partnership, or a branch of a foreign corporation. The Ministry of Commerces Department of Commercial Registration is directly in comportment of company registration.The Stock Exchange of Thailand (SET) is a well-developed financial institution which welcomes foreign investment.Bangkoks modern Don Muang International Airport can easily serve your arrivals or connections. Thailand is equipped with an extensive and ever-developing transport infrastructure and an extensive state-run running system. There are numerous shipping ports including Bangkoks Klong Toey Port and the Eastern Seaboards Mab T a Phut and Laem Chabang deep-sea ports within 200 kilometres of Bangkok.Typical business hours are for banks and financial institutions, Monday Friday 930 a.m. 330 p.m. Government offices, Monday -Friday 830 a.m. 430 p.m. (closed noon 1 p.m.) private business, Monday Friday from 830 p.m. 530 p.m.The Royal Thai Government (RTG) has been reducing spell duties and trade barriers as part of its obligations as a founding component of the World Trade Organization (WTO) and as a member of the association of South East Asian Nations (ASEAN) Free Trade Area (AFTA).A Factory Establishment Licence must be obtained from the Ministry of Industry. Fees depend on machinery power rating and the number of employees.Arbitrary customs valuation procedures force another barrier to U.S. exports. The Thai Customs Department may use as a check price the highest previously invoiced price of a product imported from any given country and may swerve actual invoiced values in favor of the check pri ce for judging purposes.On June 6, 1995, the Thai Cabinet approved a policy to require, on a case by case basis, countertrade on government procural contracts valued at over 500 million baht ($20 million)Thailand maintains several programs that subsidize exports, including preferential financing for exporters. Thailands export-import bank, established in kinsfolk 1993, is responsible for some of these programs, particularly the packing credit program.One of the around prominent trade issues between the United States and Thailand has been the extent of Thailands protection for U.S. secure, glaring and trademark holders. The Kingdom of Thailand respects all international laws regarding copyrights and trademarks.Thailand passed a new copyright law in December 1994 that strengthened intelligent copyright protection and increased the penalties for copyright infringementAmendments to the trademark law in 1992 provide higher penalties for infringement and extend protection to service s, certification, and collective marks. down the stairs current Thai regulation, only persons of Thai nationality may be licenced in many professional services, including accounting, architecture, engineering, construction management, brokerage services and legal services. However, there is planning to revise these regulations.The announcement of topic Executive Council none 281, commonly known as the Alien Business Law, limits foreign comeliness in many Thai firms to less than fifty percent. The Treaty of good will and Economic Relations between Thailand and the United States provides for 100 percent U.S. ownership of companies in most industries. Businesses in the fields of communications, transport, fiduciary functions, natural resources, or trade in agricultural products are excluded from treaty coverage.The Communications office staff of Thailand imposes stringent equity and revenue sharing requirements on International respect Added Network Service (IVANs) providers.In conclusion, The World Bank predicts that Thailand will be the worlds eighth largest economy within 20 years by the year 2020. Thailand will have a larger economy than Brazil, Britain, France, Italy and Taiwan. Thailands own National Economic and social Development Board has seen a doubling of the economy in the year 2000 and the Kingdom ranking first in southeasterly Asia, among the seven ASEAN states. I feel that this is the perfect timing to invest and I am confident that my business will prosper.