Thailand has many allures: beautiful beaches, warm clime, beautiful people, delicious food, impressive Buddhist temples, romantic and Sunny Isles, low cost of living …
Many foreigners – often visitors the Thailand-is convinced to set up and manage their own business in Thailand. They see it as the best of both worlds: settling down in paradise, relaxed lifestyle, while earning enough to pay the bills
Without compromising your dreams, you need to know about the pitfalls that could arise . and how to avoid them. Here are some things
1. It is quite possible to set up a small business in Thailand and meet your goal of covering your living expenses. However, you essentially know what you’re doing. If, for example, you want to set up a small gems-trading company, it is important that you establish a good experience in this line of work. If you want to open a bar or restaurant-something many foreigners have tried-previous experience in setting up and managing such a business is important. Without proper experience, you can be at risk of losing the entire investment in a very short time.
2. Once you have decided that you bring enough experience to the task, you need to study the Thai market to decide who will be your customers; how to reach them (Marketing); and where to locate your business to be successful.
3. When you decide to take the plunge, it is important to seek competent legal counsel to guide you through the process. There are a number of law firms that have a Western consultant, so you can sit on someone who knows the in and out of these rules, and you can trust.
4. In most cases, you need Thai Partner-true co-investor, or nominal partners. This will satisfy the Thai government for the Thai shareholders holding a minimum of 51% of the business. However, do not be put off by this particular claim :. There are legal ways to ensure that the foreign investor still in full control of / investment and their legal adviser will explain them to you
5. Furthermore, your business will have a registered business address: this can be a little like for a four-person office, or an entire suite of offices on the number of employees you need to hire. There are many office rental options in Bangkok and in smaller cities and towns to suit your budget; However, if you are thinking of running a small business out of your apartment, a consultant will need to work with you carefully to find the location that meets the expectations of the Thai government.
6. If you are running a business in Thailand by yourself, you need to obtain a work permit, otherwise you will be in conflict with immigration and labor law, that you want to avoid at all costs! The need for work to come up against the question of the number of Thai employees you will hire, it is with a minimum of regulation (4), however, the Thai staff can be phased according to the startup program. Legal adviser will tell you how to meet these interlocking rules without causing you too much of a headache.
7. It is important to keep the town accountant (it is not likely that you will need to hire a full-time accountant if your business is small). Accounting services are not expensive, from a minimum of 100 GBP (US $ 167) per month. You would, however, choose an auditor with which you can comfortably communicate in English, as you need to be on top of the tax and accounting issues: the interlocking nature of the rules of Thai companies is such that the tax and accounting issues are linked to renewal of permit and your visa every year.
8. You will want to ensure that Thai staff you hire for your business is competent and able to communicate in English. You will be happy to know that there are a number of Western managed company recruitment who have extensive experience helping Western managers in the selection of technical and administrative. You have to pay a fee for this service, of course, but it will allow you to avoid lengthy process newspaper advertising, pre-qualification and short-listing of candidates.
9. Some Legal company can provide more services to assist investors setting up a new Thai his company : help in the selection of office space that suits or your apartment for you; help to find a reputable office furnishings center; many law firms can introduce you to an English speaking accounting services.