Are you considering launching a company in Thailand but aren’t sure where to begin? Then, you’re in good hands with our detailed overview of the entire process. Our detailed guide will help you explore the Thailand economy, from choosing the right business to applying for a work visa and paying taxes.
WHY SHOULD YOU CHOOSE THAILAND TO START A SMALL BUSINESS?
Due to its strategic location in Southeast Asia, which also provides easy access to other locations, Thailand has long been regarded as an attractive place to open a business.
Most critically, Thailand’s entrepreneurial and tech industries are thriving. Big organizations have been interested in startup companies for several years. They have developed incubators to help enterprises expand in various sectors, including e-commerce, healthcare technology, and fintech. Entrepreneurs and investors are swarming to Thailand to reap the benefits of the country’s prime location in the geographical area, as Thailand provides economic competitiveness, well-connected road infrastructure, a vibrant group of digital businesses and startups, and the infrastructure required for running a successful business. We will be covering some crucial areas such as setting up a company in Thailand, starting a small business in Thailand, the proper way of registering your company and doing business in Thailand. This will prove to be beneficial, so please read carefully!
How to open an Business in Thailand
When starting a small business in Thailand, you first need to find your particular niche. It is important to remember that, unless the firm is part of a Board of Investment (BOI) arrangement, the majority shareholders have to be Thai, with foreigners owning no more than 49 percent of the company. This minority shareholding proportion may also be excused if your company acquires a Foreign Business License (FBL) often issued to foreign-owned companies that do not conflict with Thai companies. The permit application can be filed to the Ministry of Commerce’s Foreign Licensing Department, albeit authorization may take several months. Then there are several sorts of businesses. The majority of business owners choose LLC, a private limited company, wherein shareholders have less responsibility and executives have total responsibility. If you are unsure about your business regarding any legality concerns, go through the foreign business act of Thailand (1999). Before beginning a business in Thailand, review the whole list to learn which enterprises are illegal, require clearance from connected government authorities, and more.
BENEFITS OF STARTING A BUSINESS IN THAILAND
Apart from the prime location point, the government of Thailand wants to maximize foreign and local investments to boost their economy. As a result, if your company satisfies the requirements, apply to the Board of Investment. Tax breaks entail, among other things, waivers from income tax (corporate) for up to thirteen years depending on the firm’s operations and other conditions, a 50 percent decrease in income tax for five years only in unique promotional zones that require investment. In addition, they also offer dispensation from import taxes on crude, raw or indispensable components used in research and development. Meanwhile, the Board Of Investment offers non-tax benefits such as 100 percent foreign possession except in specified industries and activities, the right to own property, and bringing in talented individuals and specialists to operate in Thailand.
REGISTERING YOUR BUSINESS AND OTHER COMPULSORY REQUIREMENTS
To operate in the Thai vicinity, you must have a business or a non-Immigrant ‘B’ visa, enabling people to work lawfully in the nation. This sort of visa may be obtained through a consulate or Thai embassy in your place of origin. The visa charges are 2,000 Baht for a one-time entrance valid for 90 days or 3 months and 5,000 Baht for repeated visits with one-year validity.
Now, let’s discuss the process of registering your business – start a business in Thailand by registering your organization or businesses name, which may be done through the internet by creating a profile with the Department of Business Development. Then search for and claim the company name, then print off and certify the Notice of Reservation, valid for thirty days.
The second and most challenging phase is the compilation of the appropriate documentation. Depending on the nature of your company or organization, this may include a Memorandum of Association, an official application form, and a list of shareholders in your business. Furthermore, director forms signed by each director of the company are required, a Declaration of Business Operation form, and information about your corporation’s branches and offices. Finally, remember that you’ll still need a corporate stamp that will function as your firm’s identification while running a business.
EASE OF DOING BUSINESS IN THAILAND
The Thailand government is strengthening the business environment on priority, with the objective of being among the top 20 nations in the world in terms of ease of doing business. Thailand is continually jumping the index of World Bank’s ease of doing business, rising from the 46th ranking to 26th and then achieving the 21st position in just a few years. However, the Foreign Chambers Alliance (FCA) estimates that by implementing ten steps, Thailand would swiftly jump into the top ten of the World Bank ranking.
The Thai nation seems like an ideal spot for individuals thinking of setting up and starting their business in its vicinity – it is situated in a prime location and encourages investment in numerous ways. However, keep in mind that you must register the company by following all the official steps as otherwise there will be discrepancies.