Top Tips for Foreigners: Successfully Starting a Business in Thailand
- Conduct thorough research to understand the market demand, competition, and potential customer base in Thailand.
- Choose the appropriate business structure for your needs, such as joint venture, partnership, branch office, regional office, limited company, sole proprietorship, or representative office.
- Ensure your business is registered with the relevant authorities and complies with Thai laws, including the Foreign Business Act.
Thailand, strategically located in the centre of Southeast Asia, has long been a key destination for those looking to open and expand their businesses.
With a vibrant economy, a welcoming business environment, and numerous opportunities for entrepreneurs, Thailand continues to embrace foreign investors.
Like other countries, setting up a business in Thailand involves navigating various legal and administrative requirements.
To help you on your way, the commercial and legal experts at WSR International have compiled a list of essential tips and advice to ensure the successful launch of your business in Thailand.
Understanding the market
Before looking to launch your business in Thailand, it is important that you thoroughly understand the markets in Thailand.
We would suggest that you first conduct market research to identify demand, scope competition, and seek your potential customer base.
Developing the right business structure
Once you have decided that opening a business in Thailand is right for you, you will then need to consider the appropriate business structure.
There are currently seven distinct types of business structures that foreigners can utilise in Thailand:
- Joint venture
- Partnership
- Branch office
- Regional office
- Limited company
- Sole proprietorship
- Representative office
For further information on each business structure, please see WSR International’s guide on business structures for foreigners in Thailand.
Registering your business
Once you have decided on the appropriate business structure for your operation in Thailand, the business must be registered with the appropriate authorities.
Your business must be registered with the Department of Business Development, Ministry of Commerce.
Ensuring compliance with the Foreign Business Act
For those interested in conducting business in Thailand, they must be aware that Thailand has the Foreign Business Act, B.E. 2542 (1999), which lists the types of business activities that foreigners are not allowed to conduct in Thailand.
Furthermore, certain foreign-owned businesses will require the business owner to obtain a Foreign Business License.
Obtaining the necessary licenses and permits
Depending on your business activities, you may be required to obtain subsequent permits and licenses to ensure compliance with various regulatory requirements in Thailand.
For example, if you are looking to open a cannabis retail business, you will be required to obtain various permits and licences before you can commence operations in Thailand.
Employing people in Thailand
To ensure your business can operate in Thailand, you will need to hire people to help you run it.
There are various regulations that businesses must adhere to when hiring Thai and foreigners in the country.
Understanding your taxation obligations
It is essential that businesses operating in Thailand have a full understanding of the relevant taxation requirements in force across the country.
There are various simplified taxes such as corporate income tax, value-added tax, and withholding tax.
You must also register your business with the Thai Revenue Department.
What next for your business?
Opening a business is never easy, never mind in a foreign country, but with countless opportunities and a strong, growing economy, Thailand is one of the key locations in the Asia Pacific for foreigners looking to establish a business.
WSR Law Group’s commercial and legal experts are extremely well versed in helping foreign investors navigate the complexities of establishing and operating a business in Thailand. With offices in Bangkok and Phuket, we are well positioned to help you along the way.
