Known as the Land of Smiles, Thailand is a country of exquisite beauty, historical treasures, and hospitable people. Incredible natural beauty, world-class cuisine, tropical climate, and laid-back lifestyle are some of the top reasons to start a new business in Thailand. Starting your own business in Thailand is the best way to enjoy the love lifestyle and make a comfortable living in the Kingdom. Thailand is the second largest economy of the ten ASEAN countries. The nation is rich in natural resources, such as wood, rice, and precious stones. Textiles, jewelry, tourism, and electronics are also some of the biggest players adding to the nation’s GDP. Starting a business in this country is not an easy process. To do business successfully in this country, there are several important issues that must be considered.
How to start a business in Thailand:
According to the Foreign Business Act (FBA), the Thai government restricts business categories for foreigners. (Except for US citizens who can engage in business under the same rules as Thai citizens – Thai Friendship Treaty). Foreigners are prohibited from participating in some business categories, unless they obtain a permit.
The most common way to start a new business company in the country is to partner with a Thai citizen. Labor, immigration and foreign investment laws are quite complex in Thailand and therefore a foreigner or foreigner cannot participate in day-to-day business activities and requires a Thai national partner to lead the front. You can also consider opening a limited company in Thailand, but remember that the Thai government restricts foreign investment in industries such as banking, transportation, and communications. All company documents must be submitted in Thai and professional help may be required. Foreign owner shareholders can only hold 49% and 51% is given to the Thai shareholder.
Benefits of starting a new business in Thailand:
Thailand is considered one of the most attractive foreign investment destinations in the region. The Thai government offers many incentives to foreign investors. Incentives include exemptions from taxes and other generous concessions, permits to own land, and exemptions from import duties. However, foreigners are not allowed full ownership of the land.
Foreign Business Act is the main governing body that describes the types and categories of businesses open to foreigners. It also establishes the laws, regulations and restrictions for specific sectors such as the insurance business, real estate and financial institutional businesses. To run your business successfully in this country, you need knowledge of Foreign Business Law, the legal system, and the tax laws of the country.
Unlike most other countries where it takes 38 days to start a business, it takes an average of 33 days to start a business. Labor and construction are very affordable here compared to other nations. The large, adaptable and intelligent workforce increases the potential for business development and success. This regional center of commerce and manufacturing has become an attractive place to do business.
