Getting into business is a dream. It won’t be an easy journey to establish your brand identity in today’s market because of the existing competitors. Then, why not choose Thailand in putting up your first business?
Perhaps you are thinking about the cost when starting a business abroad. Like local enterprises, many factors could impact your initial expenses. There is no huge difference except in the location and trading standards that the citizens of Thailand follow. The article will help you understand how it goes and why it is so far the best option for business startups.
Thailand For Startup Businesses
Thailand is a beautiful place in Southeast Asia with all of its tourist spots that you can visit. This is also a home for growing businesses in the past years up to now. Many entrepreneurs can affirm the wide industry of Thailand to meet every citizen’s need. There is an expansion of e-commerce and other financial enterprises that continue to grow through the years.
The destination has a complete package for helping individuals to do business. Working with a reliable investor and other business partners is possible in Thailand to make your company grow faster.
Since Thailand is equipped with advanced technology, running a business there would be at ease. There will be no trouble with transportation and digital tools that you can use for business improvement.
It is more fun and exciting to start a business knowing a community that is willing to journey with you. This is not new in Thailand as there are plenty of new businesses around the place that you can relate to. So, do not be scared to get a business started in Thailand.
How does it work?
To begin a business in Thailand is not as easy as you think. Below is a detailed guide to be on the right track if you decide to put on a business overseas.
- Select a Type of Business
First of all, think of a business that you would like to manage in the long run. Keep in mind the policies of Thailand when choosing your shareholders. The business should be part of the Board of Investment program wherein most shareholders must be Thai and the rest are foreigners. There is an exemption to the rule for foreign-owned businesses which do not compete with other businesses in Thailand.
A private limited company is recommended for beginners. Shareholders and directors will share limited and unlimited liability, respectively.
- Understand Foreign Business Act
Establishing a foreign business must comply with the norms to prevent any trouble. Businesses in Thailand, for instance, act according to the Foreign Business Act 1999. It incorporates a full list of enterprises that require approval from the government and those prohibited ones. Then, you will have a clear idea of whether to go on with your business in mind.
- Determine Possible Incentives
Running a business in Thailand comes with plenty of incentives. You must apply for BOI after meeting all the criteria. Thailand will supply tax exemption within 13 years and 5 years of corporate income tax reduction. Additionally, businesses can enjoy no cost for import duties, depending on stated elements by the BOI.
Other non-tax benefits include foreign business ownership, such as land, and the freedom to hire workers all around the world.
- Visa Application
Getting a business visa is crucial to starting a business in Thailand. It costs 5000 Baht which is valid for one year.
SMART Visa is a type of document made for startup entrepreneurs that comes with a lot of privileges. It permits a person to stay in Thailand for up to 4 years and be exempted to apply for a work permit.
- Company Registration
It takes three steps to finally register a business in Thailand. First, secure a company name through the Department of Business Development that is valid for 30 days.
Second, you must complete all the documents, depending on the type of business. All must be signed properly with the use of a company stamp.
Lastly, locate a business registration near your company to get things done. Private companies require a week to register while a month for public companies.
Have enough funds to operate the business by opening a bank account. A minimum of 2 million Baht of paid-up capital is necessary to get a work permit. This matters because it is difficult to obtain a loan if you are a foreigner in Thailand.
- Pay Taxes
Determine what type of taxpayer you are and be responsible for paying taxes. The Revenue Department will be responsible for filing the required taxes for all foreign businesses. It varies on each business type.
- Familiarize Thai Culture
Successful entrepreneurs in Thailand choose to adapt to their culture. This is a huge step to making the business work for your good. Some universities offer courses to help foreigners understand the Thai language and culture.
Working with a reliable Thai company registration helps you start a business successfully. Thailand could be strict in accepting foreign business ideas, hence learning the above tips matters. To summarize, comply with all the criteria of the BOI to keep up with the registration process. Be aware of the type of industries that are prohibited in Thailand. The staff can assist you in completing all the documents so as not to miss out on anything. Contact the team to set up your dream business abroad.