Known as the Land of Smiles, Thailand is a country of exquisite beauty, historical treasures, and hospitable people. The 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 in love lifestyle and earn a comfortable living in the Kingdom. Thailand is the second largest economy in the 10-nation ASEAN. The nation is rich in natural resources, such as timber, rice, and precious stones. Textiles, jewelry, tourism, and home appliances are also some of the biggest players adding to the nation’s GDP. Starting a business in this country is not an easy process. In order to successfully do business in this country, there are several important issues that must be considered.
How to start a business in Thailand:
In accordance with 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: the Thai Amity treaty). Foreigners cannot participate in some business categories, unless they obtain a permit.
The most common way to start a new business venture in the country is to partner with a Thai national. Labor, immigration and foreign investment laws are quite complex in Thailand and therefore a foreigner cannot participate in day-to-day business activities and requires a Thai national partner to manage the front end. You can also think about opening a limited liability company in Thailand, but keep in mind that the Thai government restricts foreign investment in industries such as banking, transportation, and communications. All company documents must be submitted in Thai language and one may require professional help. Foreign owner shareholders can have only 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 tax breaks and other generous concessions, permits to own land, and exemptions from import duties. However, foreigners are not allowed the right to own land.
The Foreign Business Law is the main governing body that outlines the types and categories of business open to foreigners. It also establishes the laws and 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 about the country’s Foreign Business Law, legal system, and tax laws.
Unlike most other countries where it takes 38 days to start a business, it takes an average of 33 days to start a business. Manual labor and construction are very affordable here compared to other nations. A large, adaptable and intelligent workforce increases the potential for business development and success. This regional center of trade and manufacturing has become an attractive place to do business.