Being the torchbearer of the ASEAN Region, Thailand enjoys strong trade agreements with a lot of countries. For businesses planning an expansion of their presence in Asia, Thailand’s integral foreign relations & its strategic location, make the country a lucrative choice. Thai business is quite strong with its 69 million+ healthy consumer base, steady growth as a nation, strong exports, abundant natural resources, and a skilled and cost-effective workforce.
Asian offices & businesses with branches in Thailand enable high prosperity and development in all sectors across Thailand. The presence of sound infrastructure and an updated business environment increases the country’s appeal to internationally expanding companies.
The difficulties of starting a business in a foreign land are much more as compared to starting in one’s own country. Initiating a business in an overseas country presents several legal, taxation, and regulatory challenges. On the other hand, considering the supportive Thai Government, present conditions make it feasible to start a business in Thailand as compared to other countries. The few difficulties that are overseen as barriers, can be dealt with productively by startup consulting services & marketing consultants in Thailand. Consulting firms in Thailand are most helpful in assisting businesses to set up a strong base in Thailand.
Starting a business in Thailand takes almost a month on average, with four procedures to navigate. Start-ups are required to register the company name, deposit funds into a bank, obtain a corporate seal, and complete the several steps required to register the company as a legal entity. A few major problems that can be faced while starting a business are listed below:
Restriction for Foreign Investments
Thailand is well known for being friendly towards foreign investments. The Thai Government readily promotes and creates avenues to help set up businesses by foreigners. But there are a lot of business fields in which foreigners are not allowed to work. Except for a US citizen, no other nation is permitted to establish a 100% foreign-owned company. Some of the business areas that are not open for foreigners are media, land trading, businesses related to art & culture, and agriculture to name a few.
With the idea of doing business in Thailand, one should readily get in touch with startup consultants. They provide a complete overview of business opportunities in Thailand. Right from the concept of how to start a business in Thailand to businesses for sale in Thailand, a complete picture is drawn for investors to choose from.
Foreign investors face a lot of problems while setting up a business in Thailand due to language barriers. It is mandatory to fill all business forms & documents in the Thai language. As a result, foreign investors depend on consultants who understand both English and local languages. The person engaged is responsible for filling up the documentation in the Thai language. Hence, it is extremely important to validate that all documents are correctly translated and proof-read by an educated, trustworthy, and sincere person.
Business startup consulting firms play a pivotal role here. Such firms help with all business documentation in the local Thai language. Most of these firms have certified lawyers and translators so that all information can be duly vetted.
Banking Issues & Finding Investors
Thailand stands in the 70th place in the world for ease of getting credit, according to the World Bank and International Finance Corporation (IFC). Startups require to register a corporate bank account which the bank may refuse. Many times, banks refuse to dole out usual banking services; the result being going through time-consuming long processes for simple services. Loans seem unattainable. In addition, a foreigner who wants to start a business in Thailand needs local investors as a prerequisite. Finding local investors is a strenuous task for a foreign national. If done personally, then the needs of business seminars are required which are quite expensive.
Dealing with Construction Permits
Dealing with construction permits is one of the most challenging tasks to complete. A minimum of 157 days is required to obtain a construction permit. Business applicants go through several levels of procedures to obtain construction permits. There are eight procedures involved in obtaining construction permits. The Local Metropolitan Authority processes all inspections, permits, and approvals. Startups in Thailand are also required to request the approval of a building controller.
Startup consulting services come as a major reliever in this area. They guide, help, and make sure all paperwork is done to ensure minimum turnaround time.
Working Hours & Culture
Thailand abides by this work policy of 48 hours per week. In case of overtime, the pay rate is trebled of the normal rate. Thailand takes the welfare of its workforce quite seriously. There are no exemptions. As a startup, it is imperative for one to remember such guidelines. But, foreign establishments, usually take a while to get accustomed to new business practices. Also, the culture of a country is something that every individual pride themselves on. As a foreigner, though difficult for one, they must be strongly adhered to.
Startup consulting services, privy one with all the existing rules and notions of Thailand. It helps a foreign investor to work seamlessly and avoid the usual glitches that though small but have a strong impact on businesses.
In terms of doing business, every country has its business advantage, disadvantage, opportunities, and restriction. Thailand has a lot of issues when thinking of setting up a business in Thailand, but the number of perks & business opportunities available in Thailand outweighs them all. Business startup consulting firms help & guide right through registering businesses in Thailand, assisting with paperwork regarding the procurement of land, government grants, finding local investors to helping in the smooth running of a profit-making concern.
The setting up of a business in Thailand is only one goal achieved Besides company registration service, basic services like accounting, bookkeeping, auditing, business advisory, and many other day to day overviews on services are required to set up a business in Thailand. Every country has a different set of legal & taxation process. It might take startups a fair amount of time to get accustomed to the Thailand way of business & economics. Certified lawyers, translators, and marketing consultants in Thailand are ones, startups should look forward to in investing in the initial days.
The above-listed problems and the solutions are not just faced by startups and newbies in economics. It is of equal weightage to businesses wanting to set up branch offices. A foreign company with its head office in a different region will face the same problems and need assistance from consultants in Thailand for a smooth setup & running of the business. Though lucrative, Thailand is also a nation that keeps the well being & upkeep of the nation and its residents at its utmost priority. The best way to overcome all the hindrances is to make a list of all the expectations and start by contacting startup consultants in Thailand.
Startup in Thailand is the only company in Thailand to provide a single-window solution for all business startup and expansion requirements: Startup Consulting | Thailand Market Entry | Legal assistance | Serviced Office | Factory Setup | Representation | Recruitment Services | Accounting | Operations | Buying & Sourcing | Distribution | Sales & Marketing | M&A | Regional Business Development | Project Management
Few More Interesting Reads :
- Setting up a business in Thailand
- Representation in Thailand
- Export-Import Industry of Thailand
- What you should consider before doing business in SE Asia
- Top 10 Reasons to start a business in Thailand
- What makes Thailand a great startup hub
- Thailand Government – Is it supportive for business
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