Question of the week: Starting a business in Thailand
Hello readers,
My Thai girlfriend has started a company here in Thailand for the sale of Dutch products (which products I prefer to keep secret) that we purchase in the Netherlands and at a branch in Bangkok of the Dutch company.
It is an international company that is active all over the world, but not very much in Asia. We already have approval from the Dutch company and the first orders have already been placed. Market research has been done and the demand is high so we take a chance.
Would like to know if there are transport companies that can help transport the products to Thailand at nice rates? Preferably sea freight. The branch in the Netherlands has a much wider range.
Does anyone know anything about import taxes and if so what are the percentages/costs?
I myself am an entrepreneur in the Netherlands, but I run that from Thailand (internet), know a lot about rules in the Netherlands, but rules regarding a company in Thailand are new to me. Please note, the company is not in my name since it is very difficult to start a company as a foreigner and it costs a lot.
Do you have any tips for doing business in Thailand? Tips regarding administration and of course taxes?
I myself am very familiar with "Thailandblog" but I have not been able to find the right answers, I know that there can also be negative reactions, but we like to take the gamble. Negative criticism is also criticism 😉 I often read here about advising a company in Thailand, but that does not apply to us, it is now a year later with the many meetings and many emails from and to the Dutch company. Who doesn't dare who doesn't win.
We look forward to your reactions, with hopefully also positive feedback.
Greetings,
Ruben
Hello Ruben,
Get in touch with SME Thailand. They will probably be able to help you on your way. Their website is: mkbthailand.com
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Hi Rob, thanks for the response, we'll check it out right away. Greetings
I would say: contact the Dutch-Thai Chamber of Commerce. Its task is to promote mutual trade. The secretary, Bert Caesar, can tell you all about rules.
If I'm not mistaken they have their office at the embassy.
For sea freight, I assume you mean transport by container. There are a lot of companies that offer these services. If you use Google and search for door to door container transport, there are a lot of companies that deal with this.
You indicate yourself that the company where you buy your goods exports from the Netherlands to Bangkok, but that you also want to get the goods from the Netherlands in connection with the larger range. In this case I would therefore ask the parent company which carrier they use. They are already familiar with the company and also know the tricks of the trade with customs in Bangkok. There are more companies that also have the option to export to Thailand, but you don't want to be their guinea pig because they normally don't do much.
Furthermore, in maritime shipping containers have a fixed price per route, regardless of the load, as long as you do not exceed the maximum weight. It is often the case that a 40-foot container is much cheaper than a 20-foot container. Stock management is therefore a particular challenge for your company. Items that you can deliver from BKK at short notice are no problem. But with sea freight you have to assume that your container will be on its way for a few weeks. (36-40 days depending on the service schedule, usually including transshipment in Singapore) In other words, you need to have the stock to be able to oversee those few weeks, but you don't want overstock because that also costs money. In addition, you want the container as full as possible because this significantly reduces transport costs. A half-full container is much less efficient than a full container.
The reason I would opt for a door-to-door solution is that there are a few snags to sea freight. For example, about liability during transport, etc.
You can find information on the site of the NL embassy, here is the link
http://thailand.nlambassade.org/producten-en-diensten/handel-en-investeren/zakendoen-in-thailand
You can also find information about customs on the same page.
Ahoi Ruben, first of all good luck! Surely it will work! Don't attract all the negative criticism you get. Make sure that ALL your Thai papers are properly arranged! That is very important. In Thailand that is the first step towards success! Second step is tip here tip there, but of course you already knew that. Ha ha. Question from my side: where are you located? Which range will you sell? Finally: does it contain Korenwijn van Bols? Ha ha ah Good luck, Ad.
Hello Ad, thank you for your response to me, we are located in the East but go all over the country. Drink is not included. As soon as things are a bit further I will of course post how things are going and which products we have. Greetings
Talk to Stefan van der Sluys +66854491188,([email protected], knows everything about it, can arrange transport, import, storage and distribution. Keep me informed, will definitely order
Thank you for the response and I will definitely be in touch. As soon as things are a bit further I will of course post how things are going and which products we have. Greetings
See previous response, regarding Chamber of Commerce. Good tip!
Also pay attention if you import products from the head office in the Netherlands, which also has a branch in BKK.
This is called parallel import. Nothing wrong with that, if they themselves agree to it contractually. But don't turn the company against you.
You should still be able to order the products you want, and they don't have them via the branch in BKK, can you go with one of the many containers that contain the products that they do offer via BKK?
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Thank you very much for the explanation, to my knowledge the range they have in the Thailand branch comes from Australia, as it is closer and the company is active worldwide. In Australia they unfortunately also have as much assortment as here in Thailand. I'll keep everyone posted but we can do something with this, thanks again. Greetings
you say that you buy things from a Dutch branch in Bangkok, then you buy in Bangkok from them who deliver from the Netherlands, that is their problem or you import it to Bangkok, then it will be different, then you have to go to Dutch customs or you are allowed to export, there are rules for that, you are not allowed to just export everything to another part of the world, and you have to go to Thailand's customs to see what you can import, and both also know everything about taxation, first everything about a case Informing before you start a business is a bit smarter
you can lose a lot of money this way, so you don't know what profit you can make now, and products are very expensive after official import from the Netherlands, sometimes there is a blockade, to protect the economy of a country
Hi Jan. The range they have in the Thailand branch comes from Australia, as it is closer and the company is active worldwide. Unfortunately, in Australia they also have as much assortment as here in Thailand, in the Netherlands, on the other hand, there is 50% more assortment, so more cash flow. So that I now also ask about the import of goods from the Netherlands. Importing is purely an idea, not necessary in itself since we already have a nice cash flow with the available range. But more is a bonus of course. Thanks for the mail.
Dear Reuben,
I do it the other way: Food from Thailand to Western Europe, per full container.
In 1999 + 2000 I tried to do the opposite way, but because of a lot of problems in TH I stopped doing that. Import duty in TH was pretty high, from 30 to 60%, wines even (then) 400%.
NL-TH Chamber of Commerce: was in any case a total waste of time. The same goes for the Dutch embassy.
Maybe I can help?
info at tropifood dot net
For sea freight transport it is not necessary to have a full 20ft or 40ft container.
So-called sea freight consolidators (based in Rotterdam with offices or agents in Bangkok) can also book part loads, which are then transported by container together with other part loads. The agent/branch in Bangkok then “strips” such a container and approaches all consignees in Thailand. In most cases, the branch/agent in Bangkok can also take care of the customs clearance and delivery of the goods at the destination. If desired, I can even request rates from Rotterdam to Bangkok (for "general cargo"). However, if it concerns perishable products, a refrigerated container or freezer container will have to be used and that is considerably more expensive than transporting so-called "dry cargo"
If you have any further questions, let me know. I don't know anything about taxes etc. to be paid to Thai customs, that will indeed have to be requested from the authorities in Thailand. Regarding the costs for customs clearance and transport in Thailand, if desired, I can request contact details of the agent / branch of the sea freight branch in Thailand (if the goods are transported as a part load in containers)
In the case of full containers, the shipping company that transports them often also has options for customs clearance and transport, although it is of course also possible to use local forwarders who offer these services. Comparing rates….
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Hello Wim, thanks for the post to me, I myself have indeed come to the conclusion that partial loads are going to be it. There are some quotes in request at the moment. But more information is always welcome. In the beginning it will be one pallet per month, of course that will increase. (maybe a bit too positive) Greetings and thanks
which primal dutch products are we talking there I think there is certainly enough interest for this.
good luck and if it works throw some info here on the site.
Thanks for your comment. As soon as we are a little further I will of course post about what products it concerns. Greetings