Doing Business in Thailand – What You Need to Know

If you are a successful entrepreneur in your country and you are smitten with Thailand, you might be thinking about setting up a local business, and who could blame you? Owning a business allows you to obtain a long-term visa to stay in the Kingdom; in this short article, we offer useful information for the entrepreneur who wants to set up an entity in Thailand.

Private Limited Company (PLC)

If you have a Thai partner, they must hold 51% of shares, while you can hold the remaining 49%. This offers many advantages, having a local partner means you get local prices and they understand how the business world works. If you are selling products and are looking for a warehouse for rent in Bangkok, there are affordable options, especially if you have a Thai partner.

Representative Office

If you want to open a branch of your company here in Thailand, the RO would be the ideal choice; a non-trading entity that can be upgraded when the time is right. Ideal if you want to do some market research in Bangkok. The entity is not subject to local laws and you can obtain a visa and work permit.

Range of facilities

From warehouse storage to manned security, a wide range of business services are available from local providers; your Thai partner should be the one to make contact to secure local rates. Office services are inexpensive and local bookkeepers and accountants make sure you are always compliant. Click here for reasons why long-term planning is important in business.

Real estate

As you probably know, it is not permitted for foreigners to own land in Thailand; the good news is you can acquire real estate in the company name. You can always lease business premises if you are not ready to purchase and there is a thriving 3rd party industry with import/export services available.

Work permit

It is important that you are not seen to be doing any work, unless, of course, you have a work permit issued by the Ministry of Labour. The penalties can be severe, you could be jailed, fined and deported, so be careful regarding work. Of course, you can be effective in a behind-the-scenes role.

Thai Board of Investment (BOI)

Check out their website, which is full of useful information that will help you with your business registration; not all industries are open to foreign businesses, which is another good reason to partner with a Thai. The Thai government offers attractive tax concessions for foreign investors and we advise you to make contact with an English-speaking Thai law firm. They have the expertise you need and can guide you in the right direction; leasing business premises is the best way to establish a base and you will need the lawyer to check the lease prior to signing.

We hope this short article helps you with the process of establishing a business in the Royal Kingdom of Thailand.