It's Only Complicated Because You Do Not Know It Pt1.

I try not to give away what I call my “treasury of golden knowledge” but someone told me I should at least give 1 away, as a show point.

"Your wishes are my commands"

South East Asia is a complicated vault of minefields, It's multi-ethnic, multi-cultural, multi-language and it is a total cacophony of political headaches. Many countries being run by military juntas (or proxies of) and they will all have totally different legal set-ups to where you are from. Well, that is what companies from the outside think. To be honest, it is not that wrong…..but as I always say, “business is simple if you let it be” I’ve spent just under 20 years living in, working for and learning these regions from China, Laos, Thailand even Myanmar to Singapore. I have consulted for some of the biggest names in their field helping them in this extremally profitable territory and even opened 2 successful companies there of my own.

Why move into this region? Because it is so complicated from the outside, by default this would mean your competitors are not there for the most, meaning, if you move in, you have a much easier job.

Let’s prove it can be done: One of the main reasons companies do not move into Thailand, for example (and many other countries in the region) is because, unless, for an example you an exporter or a software house that no local will use your products, as a non-Thai, you can only own 49% of the company. This effectively gives away total control to whomever is the Thai partner. You can hire a lawyer to be this partner but still, many companies are not happy with this. I have helped 6 major corps move into the region and their CEO was the 100% shareholder and there were no local partners and this is all legal. I bet there are some people reading this with some knowledge that are thinking “not as a US citizen, as we can apply for 100% ownership under the Amity treaty” yes, you can but good luck with that; it is years of legal paperwork, 100’s of $1000’s of dollars and then, they may not even give it to you. My way costs $8,000 maximum but more likely $2500 and it’s fast.

First you need lawyers:

There are 2 types of lawyers in South East Asia

1 The style that has been to university and are registered with their local equivalent of the bar. They work the same as any other lawyer would.

2 The other style, ‘may’ have some licenses to work, a western equivalent would be a paralegal, that is the nearest I could compare them to. These lawyers are not with the bar and they perform their work by using their name and family connections to move things out of the way.?

At this point, you will only need figure 1, figure 2 may be needed much further down the road and that is whole other story.

Your Figure 1 lawyer needs to open a company under their name, not yours and it sits there for a while. It needs to of course be registered to perform whatever you want the company to do once operational.

Next, the company needs to apply legally to have 2 forms of shares - A and B

A shares are standard shares, B shares only allow the B shareholders to see public accounts before they go public and to vote on something that the company wishes to alter in its set up structure that would effect Thailand as a whole country.

The lawyer then needs to buy an advertisement in a newspaper and make it public knowledge that this company, that will for example be selling shoes, will have 2 sets of shares A and B and will ask if any Thai citizens has an objection to this? I have never ever seen anyone object but if they did, pay for a new add in another newspaper. It will pass in the end.

Once it has been in public knowledge for about 3 weeks, the A shares owned by the lawyer are sold on to the businesses CEO that wants to move into Thailand and the B shares are then given to a nominated Thai person. This can be 100% anyone that agrees. I would suggest offering them a small retainer for their time and use of their name. Get the Figure 1 lawyer to write up a contract confirming the B shareholders responsibilities and that in no way or form as a B share holder, they will be responsible for company losses or liabilities.

Simple if you know how.

Ever wondered how to fast track a Chinese S.A.F.E. licence?

Want me show you how to be tax free in South East Asia? ‘legally’

Would you like access to what I think will be the fastest growing GEO area in the world in the next 5 years?

I have in total 20 years of experience in APAC/ASEAN and an award winning entrepreneur in the region.

If you want mass growth in a territory that hardly any company dreamed of entering, partner with me. I am multi lingual in the region and have direct access to an array government agencies and think-tanks in ASEAN.

Who wrote this article? Peter Banks

A great business is always built on great communication. Driven by a passion for digging out improvements and a love for making things grow. I’ve spent my career creating and delivering growth, spanning multiple global markets. Show me a CEO who has led through a spreadsheet and motivated his staff through Microsoft Word; data alone doesn’t drive people. Technology helps a business, but it isn’t?‘the’?business. The key characteristic running through my career is that of a polymath. Through my deep interest in different yet complementary areas, cultures and countries, I have been able to deliver multi-million-dollar growth for a variety of companies. I love to lead, invent and inspire, and I have used this passion to bring great commercial success with my own companies and for my employers.

As a leader, I believe the secret is in hiring the right people and training them properly. After that, they need space to deliver results, and if the work environment is right, they will dedicate themselves to this. For me, there is only need for one KPI, and I encourage my professionals to improve on it as they see fit.

I have always lived by my motto: ‘Be comfortable being uncomfortable at work.’ This maxim encompasses the concept that building something is never easy and rarely follows a blueprint; it is up to all of us to forge a path forward together and keep learning along the way.?