Minimum Legal Cost To Open A Small Shop For A Thai? Anything To Declare To Sell Small Items / Souvenirs ?

[Soboringtochooseaname]

Hi,

Can you tell me what are the formalities to open a shop for a Thai ? Not departement store shop but shop at the ground floor of townhouse.

Most of Thai who open a shop, like souvenir or grocery shop, just open it and wait for someone to come and ask them to pay some tax or anything else. It seems to be no problem for them right ?

But if a Thai person wanted to open a shop the right way, how should he do ? How much would it cost ? (in case of souvenir/small items shop) Just need to know the formalities and cost of paperworks.

And do you know if some buildings are not officialy made to be a shop or can you open a shop in any townhouse / building ?

Please tell me about your GF or wife experience, did you open a shop, and did anybody show up to ask you to register it ?

Thanks for help.

[craigt3365]

How about we move this over to the biz forum?

[kerryk]

Gf opened up a small shop attached to the front of her house. She sells food, and some things like a 7/11. She went to town and got the licenses before she opened. As I remember it was not much, less than 1000 baht. Her village has about 1000 residents. She does about 500 to 1000 baht per day in sales.

[mccw]

I know you need an alcohole and cigarete licence if selling those things; about 500 bht and 140bht respectively

No business or company formed or registered no trouble. Seems like they leave the little people alone to just get on with it and make a living.

[katabeachbum]

You need one lisence to trade from a shop. any property is accepted. Not needed from mobile (car or samlor) outlet

extra lisences for some goods like cigarettes and alcohol

all very inexpensive, few hundred baht each, done at amphur or changwat office

VAT kicks in if you pass 1,8 million baht/year turnover

[Mirth]

Hi,

Can you tell me what are the formalities to open a shop for a Thai ? Not departement store shop but shop at the ground floor of townhouse.

Most of Thai who open a shop, like souvenir or grocery shop, just open it and wait for someone to come and ask them to pay some tax or anything else. It seems to be no problem for them right ?

But if a Thai person wanted to open a shop the right way, how should he do ? How much would it cost ? (in case of souvenir/small items shop) Just need to know the formalities and cost of paperworks.

And do you know if some buildings are not officialy made to be a shop or can you open a shop in any townhouse / building ?

Please tell me about your GF or wife experience, did you open a shop, and did anybody show up to ask you to register it ?

Thanks for help.

You can open a shop without any license BUT that would only open your shop to all kind of hassles for coffee money. So, best to get all the necessary licences to save yourself the headache.

True case, 5 men entered 1 of my shops today and demanded thb50,000 even though i have all licenses displayed prominently. Anyway, it's a police case and those 5 guys end up with a thb500,000 fine.

[12DrinkMore]

You can open a shop without any license BUT that would only open your shop to all kind of hassles for coffee money. So, best to get all the necessary licences to save yourself the headache.

True case, 5 men entered 1 of my shops today and demanded thb50,000 even though i have all licenses displayed prominently. Anyway, it's a police case and those 5 guys end up with a thb500,000 fine.

Why did they want 50,000 baht today?

How do you know they will end up with a 500,000 baht fine?

I really can't see that happening at all.

[keestha]

To register a shop on the name of a Thai natural person, go to a government office called OrBorTor Changwat, located in the capital of the province. The person will be given a form called Bai tabbian bu kun tammada. Needed documents for the registration are just the ID card and the house registration book (tabbian ban), make copies. The cost is just a very small government fee, cant remember exactly how much. Tax returns have to be filed yearly, plus halfway through the year a form giving an estimate what the year end results will be.

[Soboringtochooseaname]

So it seems easy for a Thai to open a shop the legal way, thank you.

And about tax, do you think that anybody in this country pay tax for a small shop ?

And do you know any other legal things to do as recording everything you buy and sell ?

I am still thinking that it's better for a Thai not to register and to declare nothing to avoid future troubles :-)

Thanks.

[newtronbom]

I go with the advice that doing it all legal, especially as it's so easy to do and cheap - less than a 1000 bht incld. cig and liquor license - is the best way to go. More so if she has a "farang" BF or hubby! Never forget the jealousy factor. As for tax, probably most small shops don't pay any at all - the ones not making a good profit for sure - and it seems there is no legal requirement to give and keep receipts (seems no tax deductions here either) and the post mentioning vat for turnover 1.8 mill plus sounds right and that's where the receipts may come in too. My wife started a small restaurant and ran it for a year or so before selling. She paid no tax, but was quick to cancel the licenses, as she said she would have to pay eventually. Told them she closed through lack of profit. I always do things here the legit way if at all possible - if it's not, I do it the Thai way too. No slant on your wife, but if you read some of the many posts here, take care her shop doesn't become a way to bleed you. Good luck anyway.

[katabeachbum]

So it seems easy for a Thai to open a shop the legal way, thank you.

And about tax, do you think that anybody in this country pay tax for a small shop ?

And do you know any other legal things to do as recording everything you buy and sell ?

I am still thinking that it's better for a Thai not to register and to declare nothing to avoid future troubles :-)

Thanks.

Its def better to register and place lisence very visible on wall, to avoid blacmailing visitors.

As I recall its max one year in prison for running a non reg shop.

Tax is nothing or close to nothing on a typical 100k baht month shop

[katabeachbum]

So it seems easy for a Thai to open a shop the legal way, thank you.

And about tax, do you think that anybody in this country pay tax for a small shop ?

And do you know any other legal things to do as recording everything you buy and sell ?

I am still thinking that it's better for a Thai not to register and to declare nothing to avoid future troubles :-)

Thanks.

Its def better to register and place lisence very visible on wall, to avoid blacmailing visitors.

As I recall its max one year in prison for running a non reg shop.

Tax is nothing or close to nothing on a typical 100k baht month shop

[Soboringtochooseaname]

Ok thanks. Anyway tax will be nothing with no profit declared ! (really, who really lives in this country to respect the law ?)

:-)

[samran]

Ok thanks. Anyway tax will be nothing with no profit declared ! (really, who really lives in this country to respect the law ?)

:-)

I think you are being too cynical.

As with licenses, it is fairly easy to register as a "sole trader".

Being a sole trader allows you to write off between 70% and 90% of your revenues as costs automatically with no receipt. As a result you'll find they pay very little or no tax.

I looked at this structure before I set up a limited company.

So when you say that no one 'respects the law', it may appear the case, but the fact is that they won't have to pay much, or any tax at all given their status. Perfectly legal, and done by the book.

Edited May 31, 2011 by samran