Starting a small business in Thailand - what registrations are required?

[elliottm]

Hi all, I posted some (unanswered) questions about filing a tax return on the pinned SME tax thread but wanted to open this up to see what other registrations are required for starting a new business.

Background:

- wife will be leaving salaried employment in Bangkok at end of Dec & opening small shoe shop in 3 floor, rental shop-house near hometown at start of Jan

- wife will be the only shop worker [WP implications clarified separately so will focus here just on registrations]

Registrations:

- wife has mentioned registering the shop and paying fee for size of signs on display (& use of communal refuse bins!), I believe this will be at tax office & local amphur but have no further information at this point

- apart from above and tax registration, are there any other requirements?

Tax registration:

- are tax returns required where the business remains below taxable income levels (per individual deriving income from business)

- is the wife's tax number the same as her ID number ('personal identification number (PIN) - she seemed reluctant to ask her HR & this isn't on her payslip!

- what records are required for a small, cash retail shop - RD website mentions receipts/P&L/B-S - but I know her uncle for example does not prepare accounts for his village grocery(!)

- can start-up/stock costs paid in Dec 2012 be claimed in 2013 when the business starts?

- will cash bankings act as a proxy for revenues in absence of sales receipts? (if so I need to steer clear of passing ATM withdrawals through the account to boost revenues for future loans!)

Any other pointers regarding registration/record keeping etc welcome, thank you.

[brit1984]

i recommend to hire a thai accountant / lawyer with experience of registering SMEs in Bangkok

there are differences between the rules as written and the rules as applied / negotiated

will be easier / faster / cheaper if you do so through someone with the relevant experience / contacts

[elliottm]

Ok thanks, as it's a small sole trader I was hoping to avoid the SME route, will follow up with the revenue centre line & see what the local tax office says when we first register & see what similar businesses are up to, thks.

[onthemoon]

As a Thai person, your wife can be a sole proprietor and does not need to open a LP or Co., Ltd.

The accountant as suggested by Brit will know all about it.

[recycler]

Just make sure it will be run as a business not as a hobby when she feels like it.

I've seen so many businesses paid for by others that fail because it's easy come, easy go. If there is no commitment and no pain it's mostly wasting money.

If your wife has no experience in business you have to depend on Thai external accountants and there is a lot of crap on the market, try to find a good one...not easy!

The revenue department and the regular accounting are a huge burden for companies in Thailand. If she can just start the business under the radar like most Thais do, that's the best option. And you stay out of it!

[deepcell]

Just make sure it will be run as a business not as a hobby when she feels like it.

I've seen so many businesses paid for by others that fail because it's easy come, easy go. If there is no commitment and no pain it's mostly wasting money.

If your wife has no experience in business you have to depend on Thai external accountants and there is a lot of crap on the market, try to find a good one...not easy!

The revenue department and the regular accounting are a huge burden for companies in Thailand. If she can just start the business under the radar like most Thais do, that's the best option. And you stay out of it!

Probably the best to do, let your Wife start the business under the radar, and you stay out!

[thailandbeachisland]

Why registering anything for a Thai, we are in Thailand and even registered the "officials" who will visit her will ask some pocket money ANYWAY !

[umbanda]

Look on the Thailand DBD web site. www.dbd.go.th

It is in English. Takes notes and go to the local DBD office to ask about. You may be lucky and found an English speaker employee with good disposition in helping you. If you use outside help may cost you a lot of money you can save. To register an individual or limited partnership company is not a BIG deal, and cost not more than 1500THB and can be done in the same day..or two. Just bring the info about the business porpoise, personal documentation, and a hand draw map of the business address. After that, you can visit the tax and VAT office, if necessary. After registration at the DBD, somebody will visit the place of business. No bribes asked, no problems here, but may be different in every province.

Only a Limited Company or Corporation registration will require an attorney office help and bank and taxes statements, etc, etc, etc.

Own experience.

Edited January 22, 2014 by umbanda

[deepcell]

Why registering anything for a Thai, we are in Thailand and even registered the "officials" who will visit her will ask some pocket money ANYWAY !

inevitable, stuffs work just like that all over the country!

[onthemoon]

Look on the Thailand DBD web site. www.dbd.go.th

It is in English. Takes notes and go to the local DBD office to ask about. You may be lucky and found an English speaker employee with good disposition in helping you. If you use outside help may cost you a lot of money you can save. To register an individual or limited partnership company is not a BIG deal, and cost not more than 1500THB and can be done in the same day..or two. Just bring the info about the business porpoise, personal documentation, and a hand draw map of the business address. After that, you can visit the tax and VAT office, if necessary. After registration at the DBD, somebody will visit the place of business. No bribes asked, no problems here, but may be different in every province.

Only a Limited Company or Corporation registration will require an attorney office help and bank and taxes statements, etc, etc, etc.

Own experience.

It is possible to register a Co.,Ltd. without an attorney. I did that once. Since then, I have always used the services of an attorney, saves you a lot of headache.

[belg]

so if i read well, 1500 baht needed for a thai to open shop

and 2.000.000 baht + 4 thais salary, social security, etc.... to start your own farang business....

nice

[helle]

Sire, I do not know how the relationship between your wife and you. I hope very well! Once a Thai woman sees money / have they go crazy !

So , play safe and contact a good english speaking account or lawyer (Little money and no problems) I have start a "LTD" with a good business partner , but after i went home "the THAI make fals papers and put all on private name !

I thought I heve a fair business partner and unemployment for more than 3 years ....to old 40 Y.(a good opportunity for them, but this is completely wrong !)

And then find an honest Thai lawyer to argue against a Thai and an honest police officer who wants your complaints note on official paper....! It's Thailand! But I go to the end ((that's for sure, and if the law "mutual agreements on investment ..." is not used, there are other options!

Don't invest in Thailand ! Better Vietnam

Have a nice day , and a good running business

HELLE

[Paangjang]

"- can start-up/stock costs paid in Dec 2012 be claimed in 2013 when the business starts?"

Does anyone know the answer to this?

[helle]

how to buy "stock" if you have the name of the business or company no VAT nr ?

Buy and sell , (to your G/F) 2014 -2013

[elliottm]

Look on the Thailand DBD web site. www.dbd.go.th

It is in English. Takes notes and go to the local DBD office to ask about. You may be lucky and found an English speaker employee with good disposition in helping you. If you use outside help may cost you a lot of money you can save. To register an individual or limited partnership company is not a BIG deal, and cost not more than 1500THB and can be done in the same day..or two. Just bring the info about the business porpoise, personal documentation, and a hand draw map of the business address. After that, you can visit the tax and VAT office, if necessary. After registration at the DBD, somebody will visit the place of business. No bribes asked, no problems here, but may be different in every province.

Only a Limited Company or Corporation registration will require an attorney office help and bank and taxes statements, etc, etc, etc.

Own experience.

Thanks umbanda, have referred the wife to dbd, tax & amphur. We already had a visit & photos taken of the fixed sign we put up although she seems intent on using the full 30 days she says she's entitled to before making the necessary registrations!

Edited January 29, 2014 by elliottm