The Thai market is open to foreign entrepreneurs wishing to expand their business. Here’s how to start a business. The possibilities are not lacking when it comes to starting a business in Thailand, provided you have a good business plan, sufficient funds and good knowledge of Thai. Thailand being a consumer society following China’s growth, the local growing middle class is inclined to spend, creating many opportunities for expatriate contractors.
Among the criteria needed to start a business in Thailand are patience, open-mindedness, respect for culture and Thai laws. Violators of restrictions and procedures face stiff penalties, which can result in hefty fines, not to mention prison sentences. It is also essential to decide on the place of domiciliation of your future business in Thailand. For example, the rental in a prime location in Bangkok will be higher than elsewhere in the Kingdom.
However, this criterion taken into account, and depending on the type of business you want to create, it is in the capital that you will do business. So, it is important that you take in-depth information from the best Thailand Law Firm. Do extensive research upstream, and consider participating in events, integrating groups to create a local network, and receiving advice from other entrepreneurs. It is also advisable to have a realistic plan B if your business creation does not go as planned.
Types of companies in Thailand According to the Foreign Business Act of 1999, foreigners are not allowed to perform specific activities in Thailand. Take advantage of your research to verify the legality of your future activity in Thailand. However, be aware that if you have certain qualifications, experience and dynamism unparalleled, some sectors such as exporting goods or marketing consulting will welcome you with open arms.
In Thailand, foreigners cannot work under the status of the business owner, except for US citizens. In fact, they can register with the Thai Trade Development Department under the Amity Treaty between the United States and Thailand. If you are not a US citizen and want to own 100% of your business, it must be sponsored by the Board OfInvestment Thailand or obtain a foreign business license. If these two options are not affordable, you have the opportunity to create a limited liability company, in which a Thai partner will have a 51% controlling interest.
Otherwise, Thai law allows foreign entrepreneurs to control their company as a minority shareholder or as CEO. Creating a Thai-majority company may have its advantages because it requires less capital, administrative procedures, and Public Procurement Bangkok. Also, the Thai-majority company can buy real estate. The minimum capital required to create a Thai-majority company is 1 million Baht. However, if you need a work permit, the limited liability company will require a minimum of 2 million baht of registered capital.
Procedure to start a business in Thailand The Thai Board of Investment describes all the steps of business creation.