Every business starts with a great idea and the drive to make it happen. Right now, there are 5,000 startups actively operating in Thailand's thriving economy, according to the Thailand Board of Investment. So, why wait? This is the perfect time to polish your small business idea and get ready to launch your business in Thailand.
Feeling a bit nervous about the business registration process, fees, and legal requirements? No need to worry! S & F Consulting Firm is here to help you with everything you need to know about starting a small business in Thailand. Keep reading to learn more!
Here are several reasons to consider setting up a small business in Thailand:
One of the benefits of setting up a small business in Thailand is the social and political stability of the country. The government operates as a constitutional monarchy. This means that the monarchy plays an important role in the country’s culture and governance.
While the majority of the population practices Buddhism, Thailand is welcoming to all religions. This inclusivity creates a peaceful business environment. As a result, you will find it easier to establish strong relationships with your customers and business partners.
The Thai government actively supports small businesses by providing various incentives. For example, the Board of Investment offers tax exemptions for eligible businesses.
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Tax incentives |
Non-tax incentives |
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Corporate Income Tax exemption |
Foreign investors can own up to 100% of a business in key sectors like technology, electronics, and agriculture. |
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There is an exemption of import duties on raw materials and essential items used in research and development. |
There is a permit that allows you to bring in skilled workers and experts to work in Thailand. |
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There is an exemption of import duties on machinery. |
There are no restrictions on foreign currencies. |
Thailand has a growing highway system. This system connects all provinces and links to neighboring countries like Laos, Cambodia, and Vietnam. Thus, small business owners in Thailand can easily transport goods to customers.
There are also seven international airports. The modern mass transit system in cities allows people to move around easily. Furthermore, Thailand has six deep sea ports and two international river ports.
In the future, the government of Thailand plans to develop a high-speed rail network. This network will connect different regions and even Southern China.
As of 2024-2025, Bangkok has about 5.8 million employed people. This means you have a large pool of potential employees to choose from. In November 2024, the labor force participation rate in Thailand was 68.9%.
This shows there are many people who are willing and ready to work. The average monthly wage in Thailand is 15,715.16 THB. This makes it easier for you to hire skilled workers at reasonable prices.
In July 2024, Thailand's cabinet approved a $2.8 billion soft loan scheme. This scheme is designed to help smaller businesses get loans. The Government Savings Bank will provide loans to commercial banks at a very low interest rate of 0.01%. This allows banks to lend to small businesses at a maximum interest rate of 3.5% per year.
This initiative will run until the end of 2025. This means you can access the funds you need to grow the small business without facing high interest costs.
The Thai government is promoting investments in emerging sectors like electric vehicles (EVs) and renewable energy. In 2024, they announced special incentives for companies that produce hybrid vehicles.
If you start a small business in these areas, you can receive support from the government. There is also increasing demand for these products and services in Thailand. This creates a wonderful opportunity for you to enter the market and grow your business.
Thailand is famous for its street food culture. You can sell popular dishes such as Pad Thai, Som Tum (papaya salad), or fresh fruit smoothies. By setting up a stall in a busy area, you can attract many customers who are looking for delicious food in Thailand.
Starting an online retail store is a popular trend in Thailand. You can sell handmade crafts, clothing, or beauty products. Many people use platforms like Facebook and Instagram to sell their products in Thailand. This allows you to reach a wider audience without the expenses of maintaining a physical store.
With the rise of online businesses, many companies need help with digital marketing. If you have skills in social media management, SEO, or content creation, you can start a digital marketing agency in Thailand.
There is a constant demand for event planners in Thailand for various occasions like weddings, birthday parties and corporate events. If you enjoy organizing and planning, starting an event planning business could be a great idea for you.
Dropshipping is a low-risk business model where you sell products without holding inventory. You can create an online store and partner with suppliers who handle shipping. With the right products, you can smoothly enter the growing ecommerce market in Thailand.
As more people own cars in Thailand, a mobile car wash and detailing service can be a profitable venture. You can offer high-quality service and use eco-friendly products to attract more clients. This business requires minimal startup costs and can be easily scaled.
You can offer grooming services for pets and sell high-quality pet food and accessories in Thailand. To increase brand visibility, you can also host pet adoption events.
This way, you can connect with local animal shelters and help find loving homes for pets in need. Plus, you can provide training sessions for pet owners.
You can open a spa and massage center in Thailand. You can offer a variety of treatments, including massages, facials, and body scrubs. By providing high-quality services and creating a comfortable atmosphere, you can grow your business within a few years.
To register a small business in Thailand, you need a minimum of three shareholders. You also need at least one director who will act as the company’s legal representative.
After you register your business, you need to get a tax identification number from the Revenue Department within 60 days. If your annual income is more than 1.8 million THB, you also have to register for Value Added Tax.
You need to have a registered address for your small business. If you rent land or office space, it must have a valid lease agreement in the business's name. If the lease is longer than three years, it must be legally registered.
Also, check the zoning laws in the area because they may limit what types of businesses can operate there. Make sure to confirm the property's zoning before you sign your lease.
In Thailand, foreigners are usually not allowed to own more than 49% of most businesses unless they get special permissions. However, businesses that receive investment incentives from the Board of Investment or those under agreements like the Thailand-USA Treaty of Amity can have up to 100% foreign ownership.
Depending on the type of small business you plan to start, you may need specific business licenses in Thailand. For example:
To register a limited company in Thailand, you need at least 50,000 THB in capital. If you want to hire foreign employees, the minimum capital requirement goes up to 2 million THB for each foreign employee you hire.
Think about the type of business you want to create. Additionally, come up with small business ideas that fit your skills and interests. For example, you could open a cafe that focuses on healthy eating. You can offer organic smoothies, fresh salads, and vegan dishes.
If you enjoy meeting new people and sharing knowledge, think about starting a cultural tour guide service. You can lead tourists through local markets, temples, and hidden gems in your area. Additionally, if you have crafting skills, you can start a business selling handmade products.
Write a clear plan for your small business. This plan should include your goals, target market, and financial projections.
Choose a unique name for your small business. You need to register this name with the Department of Business Development. Make sure it is not already taken.
Now, you must register it with the Department of Business Development. To register the business in Thailand, you will need to provide the following documents:
Depending on the type of business you plan to operate in Thailand, you may need specific licenses. Here are some examples:
Open a business bank account in Thailand. This account will help you manage your finances and keep personal and business funds separate.
Register your business for tax purposes. You will need to get a Tax ID number from the Revenue Department. This is important for paying taxes properly.
If you plan to hire employees for your business, it is important to follow local labor laws. Make sure you understand the requirements for employee contracts and the benefits you need to provide.
Once your small business is set up, start marketing it. Use social media, online advertising, and local trade fairs to attract customers in Thailand.
Innovation districts are ideal for businesses focused on technology, research, or developing new products. Bangkok is currently developing seven innovation districts:
If your business is involved in innovation or research, you will find valuable resources, networks, and R&D support in these areas.
If your small business needs manufacturing facilities, Thailand's industrial districts are a great option. Located just outside Bangkok, these areas are designed to provide easy access to utilities and are near other businesses.
There are 62 industrial districts spread across 18 provinces. These districts make it simple to establish factories or warehouses and help maintain strong supply chain connections.
Supported by the Thai government, this area focuses on economic, social, and environmental development. Major infrastructure projects, like the U-Tapao International Airport and a high-speed railway, make this region perfect for small businesses.
If you decide to set up your small business in this area, you will enjoy government incentives. You will also benefit from modern infrastructure and easy access to local markets.
S & F Consulting Firm is one of the leading business consulting firms in Thailand. Since 2012, we have helped many small business owners in Thailand by offering these services.
Setting up a small business in Thailand can be complicated. Our team helps you register the business in Thailand smoothly. We make sure you meet all legal requirements. This includes selecting the right business structure, reserving your company name, and filing the necessary documents.
Managing your business finances is crucial for long-term success. We provide professional accounting services to help you keep accurate records.
Handling taxes can be one of the complicated aspects of operating a small business in Thailand. Our experts make sure your business follows Thailand's tax regulations. We assist you with applying for a Tax Identification Number and registering for Value Added Tax.
Our business advisory services are designed to give you strategic insights. We provide market analysis and recommendations based on your situation. With our help, you can identify weaknesses in your small business, seize opportunities, and manage risks effectively.
Starting a small business in Thailand can be easy if you understand the legal requirements and market conditions. You need to register your business. You also need to obtain the necessary licenses and create a business plan.
Low-cost small business ideas in Thailand include starting an online store that sells handmade crafts or products. You can also offer freelance services like graphic design or writing. Running a food cart that sells local snacks is another option. These ideas usually need less initial investment.
Company Formation
Income Tax
Small Business Ideas
Work permit
Investment
(BA-Hons, MBA, LL.B, LL.M)
Meet Md. Forhad Hossain – is an expert in company registration with over 14 years of experience. He has helped more than 400 businesses in Malaysia and over 7,000 clients from around the world start their journey successfully.
Forhad is passionate about making business registration simple and stress-free. His knowledge and dedication have earned him the trust of entrepreneurs worldwide.
If you’re looking for someone to guide you, Md. Forhad Hossain is the name you can Rely on.
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Business Consultant Since 2012
