Reasons and Benefits of Doing Business in Thailand
Known as the Land of Smiles, Thailand is country of exquisite beauty, historical treasures and hospitable people. The incredible natural beauty, the world-class cuisine, tropical climate and relaxed lifestyle are some of the major reasons to start a new business in Thailand. Starting your own business in Thailand is the best way to enjoy the enamored lifestyle and earn a comfortable living in the Kingdom. Thailand is the second largest economy in the 10-nation ASEAN. The nation is rich in natural resources, such as timber, rice and precious stones. Textile, jewelry, tourism and electronic appliances are also some of the bigger players that add to the GDP of the nation. Starting up a business in this country is not a straightforward process. In order to run business successfully in this country, there are several important issues to be taken in consideration.
How to start a business in Thailand:
According to the Foreign Business Act (FBA), Thai government restricts business categories for foreigners. (Except for U.S. citizens who can engage in the business under the same rules as Thai nationals – Thai treaty of Amity). The foreigners are restricted from engaging in some business categories, unless a permit is obtained.
The most common way to initiate a new business venture in the country is by having a partnership with a Thai citizen. The labor, immigration and foreign investment laws are quite complex in Thailand, and hence a foreigner or alien cannot take part in day-to-day activities of business and requires a Thai national partner to run the front part. One can also think of opening a limited company in Thailand, but just remember, the Thai government restricts foreign investment in industries, like banking, transportation and communications. All the company documents are to be filed in Thai language and one may require professional help. The foreign owner shareholders can have only 49% and 51% is given to the Thai shareholder.
Benefits of starting new business in Thailand:
Thailand is considered as one of the region’s most attractive foreign investment destination. Thai government offers many incentives to the foreign investors. Incentives include tax exemptions and other generous concessions, permission to own land and import duty exemptions. However, foreigners are not allowed outright ownership of land.
Foreign Business Act is the main governing body that outlines the types and categories of businesses open to foreigners. It also sets the laws and regulations and restrictions for specific sectors such as insurance business, real estate and financial institutional businesses. To run your business successfully in this country, you require knowledge about the country’s Foreign Business Act, legal system and tax laws.
Unlike most of the other countries where it takes 38 days to start up a business, it takes on an average 33 days to start the business. Manual labor and construction is very affordable here as compared to other nations. The large, adaptable and intelligent workforce increases the potential for development and success of business. This regional center for trade and manufacturing has become an attractive place for doing business.