How to Start a Business in Thailand
If you have decided to register a business in Thailand, you may be wondering how to get started. In this article, you'll learn how to start a business in Thailand. The costs of starting a business in Thailand, getting a foreign business license, setting up a limited liability company, and getting a SMART visa are outlined. Listed below are some tips that can help you get started.
Cost of opening a business in Thailand
Opening a business in Thailand requires a good deal of paperwork. Foreigners cannot fully own a corporation unless they have Thai partners with whom they trust. A Thai corporation has to abide by all governmental regulations, and the fees to start one are roughly double those of other corporations. Regardless of the type of business you want to start, you will need to be prepared to spend a considerable amount of money.
While the cost of opening a shop in Thailand is substantially cheaper than in your home country, renting a space in a prime location will cost more. The reason for the higher costs is that rent in prime locations is much higher in Bangkok. But this is to be expected, as Bangkok is where the wealth is. A successful small business in Thailand can bring you enough income to live comfortably in the country. Nevertheless, the process can be intimidating.
Cost of obtaining a foreign business license
A foreign business license is necessary to start a business in Thailand. To obtain a foreign business license, you will need to register a minimum of Baht 3M in registered capital. This amount is sufficient to sponsor one foreign work permit. After you pay the fee, you will have to wait for four months until your application is approved. Approval of your license will depend on factors such as the impact on local employment, economic development, and technology transfer. Some types of foreign business licenses grant 100% ownership to foreigners. The cost is about 2 million baht for businesses in List 1 and 3 million baht for companies in List 2.
To obtain a foreign business license in Thailand, you must first decide what type of business you wish to start. You must be aware of the Thai Board of Investment and the regulations on ownership. To start a business in Thailand, you must own at least 49% of the company. For foreign-owned businesses, you can acquire the license only if you don't intend to compete with Thai businesses. The process usually takes a few months.
Cost of registering a limited liability company
When you want to establish a limited liability company in Thailand, there are some specific costs you should keep in mind. First, the company must be majority Thai-owned, meaning that at least 51% of the shares must be owned by a Thai national. Then, you'll need to apply for certain permits and licenses, which can cost you a lot of money. Here's a breakdown of the different costs involved.
In order to open a company in Thailand, you need to have a physical address. You'll need to register a commercial address with the Ministry of Commerce. Depending on your business requirements, you may also need to establish a bank account. Having a physical address establishes the company in the jurisdiction of several government offices, and it's crucial that you know where you'll be based.
Cost of obtaining a SMART visa
In order to qualify for a SMART visa to start bringing your business to Thailand, you will need to set up a company in the targeted industries within one year. The startup company must have a health insurance policy, a minimum salary of 200,000 Thai Baht per month, and at least 25% ownership of the business. The visa also allows you to work in Thailand for your spouse and children without the need to get a work permit. The SMART visa is granted to individuals with expertise in the targeted industry. The visa is valid for a period of four years.
The SMART Visa is a relatively new visa program, and as such has many drawbacks. In addition to not having clear definitions of what qualifies an applicant, SMART visa regulations are complex and confusing. Moreover, the conditions are too stringent and unrealistic for many start-up entrepreneurs. And the application process can be long, which can discourage applicants.