How to Start a Business in Thailand Post Pandemic

For some people, the idea of starting a business abroad is one of the most exciting prospects out there. In this article, we’re looking into how to start a business in Thailand. While it is exciting, and there are so many good prospects in this vibrant country, there are many things to remember when putting your startup business ideas into practice.

If you don’t stick to the laws set out in The Foreign Business Act of 1999, you could end up facing a big fine. If you’re looking to overcome financial challenges anyway, this is the last thing you want. On top of that, prison sentences can follow for those who don’t comply with the laws, so it is key that you do things by the book.

Understand Thailand’s Foreign Business Act

The type of business you are looking to start could even be prohibited. It’s all very well having a number of ideas but there are some industries where you will need permission to operate.

The Foreign Business Act outlines everything that you need to know. Check that your business idea is not going to land you in hot water, or that you will get fined or prevented from trading. Reading through legal documents might not be what you got into business for, but it is essential in all scenarios.

The Board of Investment

When you start a business in Thailand you might actually be able to benefit from some state-funded help. Thailand’s Board of Investment has certain schemes that try to help companies who want to invest in the country. Check whether you might be able to get an exemption from duties or even some forms of income tax. This is a way Thailand has attempted to improve its foreign investment and attract skilled workers.

Get Your Visa

If you are going to work in Thailand, even as a self-employed individual, you are going to need a visa.

You can potentially get a ‘B’ type business visa. These can be issued with 3-month or 12-month lengths of validity. You can visit a Thai Embassy or the consulate where you live as this might be a way for you to be able to stay in the country.

There is also a program called SMART. This is another method to encourage people to stay in the country. You can use it to stick around for up to four years while you build your business.

Register the Business

You will need to register with the Department of Business Development and get a reservation on your company name. You then need to prepare quite a few documents, including a form that the department will provide for you, and details and signatures of directors. You also need what is called a company stamp, this becomes like the signature for your business when agreeing on documents and forms.

After this, you are able to formally open up at the office of Business Registration.

Open a Bank Account

With these legal issues sorted, you can open up a bank account. There is also something called “paid-up capital” so if you put 2 million Baht into a bank account, you are able to get a work permit.

If you have cash and you are ready to open up a bank account you can do so with ease, but you won’t be able to find funding quite as easily. Also, expect to have to pay fees on transactions and when opening up.

Learn About the Tax Situation

Everyone’s got to pay taxes. If you’re trading in the country then you will also be liable for taxes.

The Revenue Department makes you pay income tax within 150 days after their accounting period. The corporate tax is 20% of any profit, but it is vital that you talk to local accountants. A good accountant in Thailand can make all the difference, and help you to know what expenses you are allowed.

Create a Robust Business Plan

Jumping through all of the hoops that are required to start a business in Thailand can lead to a bit of a stressful time, but that doesn’t mean that you can ignore the other aspects of running a business, and when starting any business in any part of the world, you need to create a plan.

A business plan helps you to work out your potential target market and income and gives you an idea of time scales. It’s a way to stay accountable even if you are running the business alone as a “solopreneur”.

Start Trading

This is what we all get into business for. After that planning, finally, you’ll reach the exciting part, you can start trading and making an income in Thailand, as well as enjoying the culture in this stunning country.