With an increasing economy, Thailand is considered one of the best countries in the world to start a business. Steps and information on how to start a business in Thailand will be discussed in this article. The country is in a strategic position in Southeast Asia. This serves as a gateway to other destinations in the world.
Big companies have been interested in doing business in Thailand due to its blooming of startups and tech industries. Entrepreneurs and investors have grown interest in starting a business in Thailand so they can take this advantage of the strategic location. The country has the necessary infrastructure for a business to grow.
There are multiple types of business in Thailand. You must make up your mind about what type of business you want to set up. You must be aware of the Board of Investment (BOI). If your company is not a part of the BOI program the majority share must be with Thai citizen. Foreigners can own only 49% of the company share. This minority share of ownership can be exempted if you have a Foreign Business License (FBL). This license is issued to foreign-owned businesses that do not compete with Thai businesses. It usually takes a few months to get this license from the Foreign Licensing Department.
Next, you must choose the business you want in Thailand. To start a business in Thailand you must know the business entities available to you. Such business entities are:
The popular business in Thailand is Private Limited Company / Thai Limited Company. In this, the shareholders have limited liabilities and directors have unlimited liabilities.
A private Limited Company is one of the best forms of business in Thailand. It is required that 3 shareholders are in place. A private limited company must hold at least a 51% share to register their company in Thailand. The requirements to setting up a businesses are:
Registered companies need to hire auditors who will audit their financial statements once a year. The auditor must submit audit reports to the Revenue Department.
There is a scheme in place for investors in Thailand. Your business in Thailand for foreigner must meet the criteria to benefit from this scheme. Thailand Board of Investment offers tax incentives which include exemption from corporate income tax for up to 13 years. Furthermore, it provides a 50% reduction in corporate income tax for 5 years (available only in special investment promotional zones).
To start a business in Thailand you must have a valid permit. You will need a Business Visa or a Non-Immigrant ‘B’ to legally run your business in Thailand. You can get this visa by submitting an application to the Royal Thai Embassy. There are 3 types of business visa. The fee of a visa for a single entry is 2000 Baht having validity of three months. On the other hand, a fee of visa for multiple entries cost 5000 Baht with a validity of one year. Additionally, there is another visa called the Smart Visa Program. This program is relatively new and targeted at investors and entrepreneurs. The benefits of the SMART Visa Program are the permission to stay for 4 years and exemption from work permit requirements.
Applying for a Smart visa requires qualification. If you meet the required criteria you can apply at the Royal Thai Embassy.
After getting the visa you must register your company in Thailand. Detailed steps are provided below. The first step of business Registration in Thailand for foreigners includes a name search. This can be done online by creating an account.
If you wish to register your company then the process is almost the same for all businesses.
Paid-Up Capital and Bank Account
The minimum paid-up capital required for a permit to legally work in Thailand is 2 million Baht. This allows 1 work permit. In the case of opening a Bank Account in Thailand, it is easy. Opening a bank account in a commercial bank in Thailand is simple. However, if you require loans from Thai Banks, it will be difficult.
After successful Registration, the company must register for tax and vat with 60 days of incorporation. You can get your corporate tax ID from the Thailand Revenue Board. This process can be easily done online. The table below shows the government fees for the Registration of a company:
| Name of the services | Fees in Thb | Details |
| Company Incorporation | 35000 | Register the name, draft documents, submit them, and obtain certified copies from the DBD office. |
| Statutory Meeting | 1000 | To prepare the board resolution |
| Company seal | 2000 | Its a common seal of the company |
| Registration For Tax ID | 3000 | Income tax number registration after starting a business. |
| Thai partrnership | 18000 | 3 months engagement |
| VAT Registration | 8000 | T & C are applied to apply of it. |
| Translation | 2000 | Language translation service |
| Bank account | 1000 | Cooperate to open an account within a day |
| Total cost | 60000-85000 | Including incorporation, Thai partner and all other as mentioning in above. |
Registration of a company cost visit here for details of the business establishment service.
Conclusion
Thailand is considered as one of the best countries to start a business. The country’s strategic location allows businesses to have an open opportunity. Thailand has successfully gained the top positions for tourist spot as well as a business startup location. Scopes are limitless. The government of Thailand provides a lot of benefits for entrepreneurs and foreign investors to start a business in Thailand.
Faq
Seven working days are needed to finish the entire process, including document preparation, drafting, the directors' original signatures, and other requirements.
If the company has a minimum of 1-million-baht paid-up capital, the government will charge 6000 baht.
Registration cost Thb 40000 to 80000
Office rent 25000 to above
Hiring Thai staff's salary Thb 20000 to above
Working approval Thb 2000 for government fee and other costs 3000 to 5000 extra.
