Setting Up a Business in Thailand – A Basic Overview

Many expats who relocate to Thailand have a business plan that they implement upon their arrival and let’s face it, if you are going to live in the Royal Kingdom of Thailand, you might as well create a source of revenue to maintain your lifestyle. 

Various types of business registration

If a foreigner wishes to set up a business in Thailand, the options are as follows:

• Representative Office – Known as an RO, this is ideal for a foreign business that wishes to carry out some market research in Thailand; a non-trading entity that is not subject to local laws. You can receive a work permit and a long-term visa with this type of registration. It takes about 3-4 weeks to complete. 
• Private Limited Company – This would typically include a Thai partner who would hold 51% of company shares, while you hold the remaining 49%. Many foreigners use their Thai spouse to be the major shareholder and you can also acquire real estate in the company name, which is a loophole for the law that states foreigners are not permitted to own land.
• Branch Office – Ideal for an international company that wants to open an office in Thailand, there are certain requirements and once they are met, the registration process can go ahead. You can appoint a foreign manager and hire local staff and his non-trading entity is not subject to local regulations.

Prior to applying for the business registration, you should consult with an English-speaking Thai lawyer and let the legal specialist explain the pros and cons of each business type. If you need to outsource essential business services, the lawyer has all the connections and can source anything you need.

Sourcing a business HQ

Many foreign entrepreneurs use the affordable meeting rooms in Sukhumvit where they have all the amenities you would need to host a business conference. Shared office space is another option, while many businesses use their home as their registered business address. You can make good use of the state-of-the-art meeting rooms that top hotels offer, if you only meet once a week or less frequently, this would be ideal.

Bookkeeping & accounting

You can hire a local bookkeeper to manage your books and when the time comes, their accountant can file your tax returns. It is critical that you remain compliant regarding the business, which is why you need to outsource to local providers. Here are a few energy-saving hacks that every entrepreneur should know.

Paying taxes

Of course, every business in Thailand must pay tax and you will be happy to learn that foreign businesses enjoy certain tax concessions; talk to a business lawyer for more information. If you receive the best advice, you can make informed decisions that greatly benefit the business.

To summarise, with legal advice, you can navigate the many pitfalls regarding setting up a business in Thailand and we hope this short article helps you in some way.