Business in Thailand

admin September 20, 2014 0

Thailand is not only a great draw as a tourist destination. It has a lot of potential and attraction as a probable place to begin a new business venture. Development in Thailand is happening at a brisk pace and plethora of viable and unviable avenues and opportunities are available for all kinds of businessmen. The option of working in Thailand proffers an entity to taste the flavour of one of the most dynamic economies in South-East Asia.

Restrictions

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To put things into perspective and to set to expectations right, at the outset the limitations applicable on foreigners, who wish to open shop in Thailand are:

– Option of doing business of antiquities is prohibited for foreigners.

– Professional practice of Law, Architecture or Accountancy, mandate additional licences
from the Ministry of commerce.

– One must secure detailed legal advice before working in Thailand as an entrepreneur or a self
employed person.

– Attempts to set up shell companies are best avoided, since it is as easy for law enforcement
to track such activities, as it is for them to trace such alien nationals who are doing jobs of any
kind without the requisite work permits.

Steps involved:

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1.) If one wishes to set up operations in Thailand, the most excellent point of contact is the office of the Board of Investment. The board is there to aid through moving investment plans. The attraction is apparent in policies such as lack of much overseas equity limitations. It also serves as a much needed guide and Connect between important private and public offices.

The B.O.I. aids set up by not only providing advice but also end to end information on how to institute operations in Thailand.

2.) The method of registering a Thai company is simple and offer greater benefits than operating offshore. The usual approach is to register a limited company which bears structural resemblance to the limited liability companies (LLC) in the United States. A minimum of three shareholders are required to set up a limited company with at least one director to manage it.

3.) In order for a company to be registered it must be kept in perspective, that a bare minimum of 51% of the company’s equity must be owned by Thai Citizens. This kind of share distribution provides exemptions from application of the Foreign Business Act and its precincts.

4.) To register a Thai Company, eligible for a work permit, a minimum of 2 million THB in capital is required. A Registration fee of 5,000 THB is required for every million of initial capital. However, the company start at the beginning with a 30,000 THB capital without eligibility to secure a work permit.

5.) One must apply within 30 days of starting the operations, and apply for a tax number.

6.) One must further ensure, that from the outset appropriate accounting must be carried out as per Thai code of commerce, fiscal laws etc.

7.) If one requires a work permit they must have a non immigrant visa.

When investing in Thailand one must have substantial investment cushion as unlike Cambodia (an up-and-coming front line market), Thailand has a more developed market with a different set of challenges.

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