There are numbers of reasons why foreigners want to start a business in Thailand. Thailand’s improving infrastructure, cost-effective workforce, and its strategic location attracts lots of foreign investor around the world. However, the Thai government does not allow foreigners to hold 100 % company share unless you have the US or Thai citizenship.
Most of the foreigners who visit Thailand finds that Thailand is an excellent place for business. Foreigners mainly go for a company like- coffee shop, bar, bungalow, restaurant, or resort business. Not all business get success in Thailand. Foreigners do fail at a high rate due to lack of planning. However, cultural differences and legal boundaries need to consider before planning to open a business.
Ease of Business in Thailand
According to the world banks ease of doing business raking, Thailand currently ranks 27th among 190 economies in the world. Which shows that starting a business in Thailand is relatively easier. The success or failure in business will mostly depend on things like:
- Market Research.
- Strong business plan.
- Your experience of doing business.
- Marketing of your product or service.
- Fulfilling Licenses requirements for your goods/products
- Quality of your staff.
- Adopting Thai culture
Moreover, you must learn the Thai language to operate your business without any problems. You are also required to prepare all the business registration paper in the Thai language. Finally, you should assess your goals and think through your plan. If you invest a limited capital and open a small business, you have to accept the fact that it might not make you a millionaire back home. However, if your business is successful, you can enjoy a very comfortable and enjoyable life in Thailand.
Cost for Setting Up a Business in Thailand
There is no specific figure. The cost mainly depends on the type of business and its location. Just keep in mind that opening up a shop in Bangkok will cost more than other parts of the country. Though setting you a business in Thailand is costly, but this a place where you could also earn more.
Compared to other western countries the cost of electricity, water and employee salaries are more affordable. The average employee salary rate in Thailand ranges from 6000 baht to 8000 baht. This cost-effective is one of the root causes behind foreigner’s desire to open up their dream business in Thailand. The table below shows the other cost of setting up a business in Thailand.
|Types of fees||Fees in baht|
|Registering company name||Free|
|Service fee of company registration||17000 baht|
|Making company stamp||500 baht|
|Filling of MoA||12000 baths for 2 million capital|
|Registration for Vat and Tax||Free|
Fundamental of Thai Business
There are various types of business structure available in Thailand for foreigners. Depending on your investment capital, you can set up a small business or large venture. Remember, foreigners are not allowed to own 100% shares of any business in Thailand unless you are a US citizen.
The most common way to start a business in Thailand is to register it under a Thai person. If you are going to register your business under a Thai partner, it has to be with someone you trust. It recommended to set up a small business before you decide to set up a large venture.
Usually, foreign business investor registers their business under a Thai wife, Thai girlfriend, or Thai friends/business partners whom they trust. You and your partner must understand each other both personally before you start your venture. Following are the available business structure for foreigners in Thailand —
- Limited companies
- Partnership companies
- Branch office
- Representative office
- Regional head quarter
However, you need to go through several documentation procedures for registering a company in Thailand. Usually, the process starts with — company name registration, filling of MoA, opening a bank account, depositing paid-up capital, register for vat and tax license, etc.
It is strictly forbidden to work or even volunteer in your own-funded business in Thailand without a work visa. A minimum of 5000 Baht charged per month for work visas. For a small business in Thailand, this is a reasonable amount. However, if the local immigration officer finds someone operating a business without a work visa, they will shut down the business permanently.
If you have the right business plan in place and register your company successfully, no one can stop you from making your business success Thailand. Registering a company on your own can be problematic and time-consuming. Therefore, it is recommended to contact a business consulting firm, who can assist you in completing all the legal procedure required to register a company.
Frequently Asked Question
Q: How long it takes to register a company in Thailand?
It takes a maximum of 30 days to register a company in Thailand.
Q: What is the government fees for filling memorandum of association?
If the company have a minimum of 1-million-baht paid-up capital, the government will charge 6000 baht.
Q: How much and how long it takes to register a company name in Thailand?
Company name registration is free of charge, and it takes a maximum of 2 days to register a company name.