Start Business in Thailand: Challenges to Overcome
There are different types of problems you should know about before you think to start a business in Thailand. Setting up a business anywhere in the world is a difficult task. Different types of potential risks will often obstacle your route to success, especially if you are a foreigner. But the question is — Why still a foreigner wants to Register a Company in Thailand? These are the following reasons -
- 67 million-strong population of Thailand forms a strong consumer base.
- Highly developed business infrastructure.
- Cost-effective workforce.
However, starting a business in an overseas country is often associated with several legal, cultural, taxation, and regulatory challenges. Here are some challenges of registering and doing business in Thailand.
Problems of Starting a Business
Problems of starting a business in Thailand includes four procedures which take almost a month. The procedures are -
- Registration of company name.
- Deposit of funds into a bank.
- Obtain a necessary business license.
- Obtain a corporate seal.
Dealing with Construction Permits
Dealing with construction permits is one challenging task to complete. To obtains a construction permit, it takes a minimum of 157 days to complete all the procedures. An applicant needs to go through several procedures to obtain construction permits. The local Metropolitan Authority processes all inspections, permits, and approval of the construction business.
Restriction for Foreign Investors
There are lots of business fields in which foreigners are not allowed to work. The foreign investor is not permitted to establish a 100% foreign-owned company. However, Only US citizen is allowed to own a 100% foreign-owned company. These are the following business area that is not open for foreigners -
Language Barrier
Because of the language barrier, the foreign investor faces lots of problems while setting up a business in Thailand. All the business forms and documents must be in the Thai Language. As a result, foreign investors need to depend on someone who understands both English and the local language and can prepare all the documentation in the Thai language.
Make sure that all documents are correctly translated and proofread by an educated, trustworthy, and sincere person. There are lots of business consulting firms that can help you out doing all the business documentation in the local Thai language.
Bank Account Opening Issues
If you want to open a corporate bank account for your small business, the bank may refuse to open your business account. You may only end up opening a savings account. Bank will not even provide you with an ATM card. The bank will write up personal bank cheques upon request, which is a time-consuming process. You may often need to pay your clients in either cash or transfer/deposit funds into their account at the bank. Not only that, loans are tough to obtain. If you plan to start a business in Thailand, it will be nearly impossible to get a bank loan from Thailand.
Working hours
8 hours a day or 48 hours per week- Thailand abides by this work policy. In the case of overtime, workers must receive 3 times the payment at the normal rate. As a business person, you should always keep in mind that the costs may be higher than your estimation.
Finding Investors
A foreigner who wants to start a business in Thailand needs local investors as a part of the requirement. However, finding local investors is a bit difficult process. Also, you may need to arrange a business seminar to find the investors for your business. Moreover, you can also contact with business consulting firm to find an investor for your business.
In terms of doing business, every country has its business advantage, disadvantage, opportunities, and restriction. Although, there may be lots of problems doing the fishing business in Thailand. Yet, that doesn’t mean you will stop yourself from making your dreams comes true. Moreover, always remember if there is a problem, there is a solution.
Many business consulting firms can help you out to register your business in Thailand. Additionally, they can solve any type of business problem that is restricting you from establishing your dream business.
Konrad Legal is a globally recognized business consulting firm. We will assist you in getting your company register in Thailand without any hassle. Konrad Legal also provides services like accounting, bookkeeping, auditing, business advisory, trademarks, notary and ISO Certification.
Originally published at https://www.konradlegal.com on September 15, 2021.
