Thailand attracts millions of tourists every year, it boasts some of the friendliest people, the best cuisine, and the most breathtaking beaches in the world. Although Thailand is known as a tourist hotspot, it continues to attract a lot of foreign business investment. Starting a business in Thailand can be a daunting prospect, there are a lot of things you must understand before you begin the process.
Why Use a Business Consultant?
Company formation in Bangkok or any other city in Thailand can be tricky, especially if you are unfamiliar with the law. The easiest and most effective way around this is to get in touch with a business consultant who operates in Thailand. A professional consultant will know how everything works, they will ensure you meet all the legal requirements and you are free to operate as soon as the business opens.
A business consultant is a must-have in Thailand as the penalties for not adhering to regulations can be steep. If your business fails to comply with the law or you simply make a mistake during registration, you could face a hefty penalty.
There are many different types of businesses in Thailand, but foreigners are restricted from certain jobs, such as:
- Trading & auctioning of Thai antiques
- Trading in land
When setting up a company, a foreigner can choose from a limited partnership, representative office, or limited company. You will find that most choose to register as a limited company. A limited company can be either private or public. A private company will have a limited number of shareholders. A public company requires a minimum of 15 promoters for formation and registration purposes.
Controlling the Company
You should avoid setting up a company in the name of your partner just to get the ball rolling quicker. It can cause all sorts of problems down the road and it is something you should not entertain. Although you cannot legally be a majority shareholder, you can still control the company as a minority shareholder. When setting up the company, you must register as the managing director.
A foreigner who wants to invest in a business can for a Thai majority organisation whereby the Thai partner or partners have a 51% stake in the company, and the foreign associate has the rest.
Many people will tell you that you cannot own a business outright if you are a foreigner, but this is not entirely true. There are ways to set up a company without needing a local stakeholder. You can contact the board of investment in Thailand or obtain a foreign business license. If you’re a US citizen, you can also register through the Treaty of Amity.
Doing business in Thailand and forming a company can be quite difficult if you do not know the landscape. Most business owners seek advice from knowledgeable consultants who have a solid track record in the country. Succeeding in any business is a challenge, so make sure you get off on the right foot by getting professional recommendations and guidance.