There are different types of problems of setting up a business in Thailand. Setting up a business anywhere in the world is a difficult task. Different types of potential risk will often obstacle your route to success, especially if you are a foreigner. But the question is – Why still foreigner wants to register a company in Thailand? These are the following reasons —
- 67 million strong population of Thailand forms a strong consumer base.
- Highly developed business infrastructure.
- Cost effective workforce.
However, starting a business in an overseas country is often associated with several legal, cultural, taxation, and regulatory challenges. Here are some challenges of registering and doing business in Thailand—
Problems of Starting a Business
Problems of starting a business in Thailand includes four procedures which take almost a month. The procedures are –
- Registration of company name.
- Deposit of funds into a bank.
- Obtain necessary business license.
- Obtain a corporate seal.
Dealing with Construction Permits
Dealing with construction permits is one challenging task to complete. To obtains a construction permit, it takes a minimum of 157 days to complete all the procedure. An applicant needs to go through several procedures to obtain construction permits. The local Metropolitan Authority processes all inspections, permits, and approval of the construction business.
Restriction for Foreign Investors
There are lots of business fields in which foreigners are not allowed to work. The foreign investor is not permitted to establish a 100% foreign owned company. However, Only US citizen is allowed to own a 100% foreign owned company. These are the following business area that is not open for foreigners —
- Land trading
- Agriculture and
- Anything business that is related to art and culture.
Because of the language barrier, the foreign investor faces lots of problems while setting up a business in Thailand. All the business forms and documents are needed to be written in the Thai Language. As a result, foreign investors need to be depended on someone who understands both English and local language and can prepare all the documentation in the Thai language.
Make sure that all documents are correctly translated and proof-read by an educated, trustworthy, and sincere person. There are lots of business consulting firm who can help you out doing all the business documentation in local Thai language.
Bank Account Opening Issues
If you want to open a corporate bank account of your small business, the bank may refuse to open your business account. You may only end up opening a savings account. Bank will not even provide you with ATM card. The bank will write up personal bank cheques upon request, which is a time-consuming process. You may often need to pay your clients in either cash or transfer/deposit funds into their account at the bank. Not only that, loans are tough to obtain. If you are setting up a business, it will be nearly impossible to get a bank loan from Thailand.
8 hours a day or 48 hours per week– Thailand abides by this work policy. In case of over time, workers must be paid 3 times then the normal rate. As a business person you should always keep in mind about this issue because sometimes the costs may be higher than you estimated.
A foreigner who wants to start a business in Thailand needs local investors as a part of the requirement. However, finding local investors is a bit difficult process. You may need to arrange a business seminar to find the investors for your business. One the hand, you can also contact with business consulting firm to find an investor for your business.
In terms of doing business, every country has its business advantage, disadvantage, opportunities, and restriction. There may be lots of problems doing the fishing business in Thailand, that doesn’t mean you will stop yourself from making your dreams comes true. Always remember if there is a problem, there is a solution.
Many business consulting firms can help you out to register your business in Thailand. They can solve any types of business problems that are restricting you from establishing your dream business. S & F Consulting Firm is a globally recognized business consulting firm. S & F Will assist you in getting your company register in Thailand without any hassle. Besides company registration service, “S & F” also provides service like accounting, bookkeeping, auditing, business advisory, and many others.
Frequently Asked Question
In Thailand, foreigners cannot start a business in media, agriculture, and trading sectors.
S & F Consulting Firm is one of the best business consulting firm in Thailand.
The foreigner can hold 49% of company share, other 51% should be hold by Thai locals.