Simple steps to open Thai Business?

[Social Media]

Can someone please outline the current requirement to start a Business in Thailand. Either by  Thai wife or by Farang.

I heard of 1 mil baht and employ 4 people as one scenario but what are the other permutations or options for a business selling Internationally ONLY and not selling within Thailand.

 

Thanks for any guidance/help.

[swissie]

Nothing is simple for a Farang to "open a business" in Thailand. (Legally, that is). Sooner or later, you will end up in the fangs of a friendly Thai Lawyer, specializing in "Farang Matters". Oh boy!

Of course, much simpler if you put everything in Thai-Wifes name. But in such a case, an even more simple approach is recommended:

- Open window
- Take your money
- Throw money out of window
- Close window

I realize, that this is not the kind of answer you expected. But keep in mind and never forget: Unless your name is Samsung, Mitsubishi, Toyota, Thailand is not a "Foreign-Investor-Friendly Turf".
Good luck & cheers.

 

[Asiantravel]

9 hours ago, swissie said:

Nothing is simple for a Farang to "open a business" in Thailand. (Legally, that is). Sooner or later, you will end up in the fangs of a friendly Thai Lawyer, specializing in "Farang Matters". Oh boy!

Of course, much simpler if you put everything in Thai-Wifes name. But in such a case, an even more simple approach is recommended:

- Open window
- Take your money
- Throw money out of window
- Close window

I realize, that this is not the kind of answer you expected. But keep in mind and never forget: Unless your name is Samsung, Mitsubishi, Toyota, Thailand is not a "Foreign-Investor-Friendly Turf".
Good luck & cheers.

 

 

 

[yellowboat]

Are you looking to open a business or a "Thai Business" ?  If your transactions are taking place outside of Thailand, you are far better off setting up in Hong Kong or Singapore.  Your options are far better in those places than in Thailand.  It is better to avoid, limit your contact with Thai officialdom as much as possible.   

[KIWIBATCH]

I would not even consider opening a business in Thailand if I were you....you realise that in the passage of time you will lose the lot...guarranteed...!!

[williamgeorgeallen]

11 hours ago, swissie said:

Nothing is simple for a Farang to "open a business" in Thailand. (Legally, that is). Sooner or later, you will end up in the fangs of a friendly Thai Lawyer, specializing in "Farang Matters". Oh boy!

Of course, much simpler if you put everything in Thai-Wifes name. But in such a case, an even more simple approach is recommended:

- Open window
- Take your money
- Throw money out of window
- Close window

I realize, that this is not the kind of answer you expected. But keep in mind and never forget: Unless your name is Samsung, Mitsubishi, Toyota, Thailand is not a "Foreign-Investor-Friendly Turf".
Good luck & cheers.

 

pretty good answer. you need a good lawyer/accountant you can PM me. she has been looking after me and my business for the last 6 years and has helped me with many many problems.

[TravelerEastWest]

For a Thai citizen very easy go down to the local government building and pay less than 100 baht as I recall for a business permit to do business as a sole proprietor.

 

No VAT license needed at first.

[SOTIRIOS]

....as stated....not easy....and 'they will get to you one way or another'.....

 

...as for 'putting it in your wife's name'......

 

...the end result will be the same....pay....pay...pay....end up with nothing....

 

...really wonder why our governments say nothing....

 

 

 

 

[kingstonkid]

Sotiros what are they going to say.  Thailand was starting to get ripped off by big western countries and decided to protect it's workers.  If you look around the world you will see that that is one of the biggest complaints that people have.  Other people stealing their jobs.

 

OP  The comment about a good lawyer is the most important thing.

 

Too the best of my knowledge though if you are going to get a work permit to work you need the 2 mil and 4 workers.  If you are not getting the permit and are just an investor it gets easier.

 

A lot of it depends also on the type of business.

[AsianExport]

You need to be Thai. Forget it, just asking is already ridiculous.

[seancbk]

Black Ops

The best source of information on the steps required to start a business can be found on the Thailand Board of Investment website.

Here is the link - http://www.boi.go.th/index.php?page=setting_up_a_business

 

There are lots of opportunities here for smart business people to make a lot of money, despite what some of the negative comments would have you believe.  

Best of luck.
 

[Autonuaq]

if you are doing international business and as you say not plan to do Thailand.

 

You do not need a Thai company. All around the (western) world you can have a company of good standing including address and services needed to represent and work from your chair at home

For example, have a look and go to use a company from Singapore, Hong Kong, the UK, The Netherlands or to the US.

 

Because as you are saying you are only doing international as well that you state that you have nothing from Thailand. In this case it seems to be very unlogic as well that there seems to be no need to increase the costs and need to pay for 4 Thai and yourself the tax and  salary. As well that you are limited that you only can own 49% of the shares in nearly the most of all cases.

You can own more shares if you are investing so much that the BIO will grant you total ownership of the shares. and if this is the case I am sure you would have been asking anything in this forum at all.

 

In this case you live in Thailand and work abroad and pay taxes abroad.

the same as someone life in the UK and works in France  or Germany.

 

 

 

[Autonuaq]

1 hour ago, kingstonkid said:

Sotiros what are they going to say.  Thailand was starting to get ripped off by big western countries and decided to protect it's workers.  If you look around the world you will see that that is one of the biggest complaints that people have.  Other people stealing their jobs.

 

OP  The comment about a good lawyer is the most important thing.

 

Too the best of my knowledge though if you are going to get a work permit to work you need the 2 mil and 4 workers.  If you are not getting the permit and are just an investor it gets easier.

 

A lot of it depends also on the type of business.

 

if you are maaried you need 1 million 

and still 4 workers

 

So have a lot of cost per month before you can make the profit

4 Workers need to pay the minimum wages.

The foreigner needs to have the salary according to the list of the labor department

You have to show the proof of paid taxes to the Revenue Office.

 

 

 

[Enoon]

1 hour ago, kingstonkid said:

Sotiros what are they going to say.  Thailand was starting to get ripped off by big western countries and decided to protect it's workers.  If you look around the world you will see that that is one of the biggest complaints that people have.  Other people stealing their jobs.

 

OP  The comment about a good lawyer is the most important thing.

 

Too the best of my knowledge though if you are going to get a work permit to work you need the 2 mil and 4 workers.  If you are not getting the permit and are just an investor it gets easier.

 

A lot of it depends also on the type of business.

 

There has been a lot of "protecting" going on, but none of it has been for the workers benefit.

 

 

 

[yellowboat]

2 hours ago, seancbk said:

Black Ops

The best source of information on the steps required to start a business can be found on the Thailand Board of Investment website.

Here is the link - http://www.boi.go.th/index.php?page=setting_up_a_business

 

There are lots of opportunities here for smart business people to make a lot of money, despite what some of the negative comments would have you believe.  

Best of luck.
 

Agreed in some cases, but Thailand's neighbors are easier to deal with.  If you have some positive stories, please share.

[seancbk]

28 minutes ago, yellowboat said:

Agreed in some cases, but Thailand's neighbors are easier to deal with.  If you have some positive stories, please share.

The problem with these threads where someone asks about setting up a business, is you get a bunch of blokes who think that a business in Thailand = buying a bar 

 

They are people who have never run large companies themselves and have no grasp of the fact that it is possible to build a very large enterprise in Thailand, if you have the right experience, investment available and partners.

They are also probably people who aside from not having the experience required, also don't have the right connections and quite possibly don't have the energy required to growing a successful business. 

I won't divulge the names of the expats I know here with large, successful businesses out of respect for their privacy.    But let's put it this way, if someone is for example a successful restaurant owner in their home country with a chain of restaurants and they come to Bangkok with that experience, do you not think that they are capable of building a similar successful business and end up owning many restaurants here?    

Jamie Oliver is opening Jamie's Italian here very soon (I am close friends with the General Manager from Singapore who is coming over to oversee the setup, hiring and training).   You can bet that they will be successful and will open multiple branches in Thailand.

Even people without business experience can do it.  

 

There is a food delivery business in Bangkok that started with the guy making a few meals a week for his clients and now his company delivers around 400 meals a day.  
Recently they were advertising for an English speaking Thai customer service manager with a salary of 35,000 THB.   That isn't a business that is failing, that is a business that is going from strength the strength.   Its also currently only available in Bangkok, but could be expanded nationally and go from 400 meals a day to who knows... 1000, 2000, 4000.....  They deliver food fresh, but could easily start freezing the meals and then get them into 7/11 and Supermarkets.   No reason why in a few years they couldn't be selling 10,000+ meals a day.   (FYI a friend of mine started a similar business in the UK in 2012 and they now do 7.2 million meals a month).


Some people just think small, some people think big.  Guess which ones are more likely to be successful?

 

 

 

 

[khunPer]

Black Ops asks:
»I heard of 1 mil baht and employ 4 people as one scenario but what are the other permutations or options for a business selling Internationally ONLY and not selling within Thailand.«

 

There is no difference (to my knowledge) when opening a Thai-business, that you deal internationally or nationally – you are going to open a Thai company limited; and if you are going to do any work yourself in the business, you'll need a Work Permit.

 

Simple steps (OP's request):

1. There are plenty of treads about this subject, you may save yourself a lot of time by using a search-function.

2. Consult an experienced business lawyer to get the the latest updates on opening a business in Thailand.

3. Find at least 2 more shareholders, than yourself, as you shall need minimum 3 shareholders to form a company.

4. 51% percent of "your" company shall be owned by Thais; at least one Thai shareholder out of 3.

5. Your Thai shareholder(s) shall be able to show proof of funds; i.e. that they legally have the money for their shares, so the don't act as proxies for you.

6. If you wish to work in the company, you shall have a Work Permit and the company shall have minimum 2 million baht in shareholder capital, and at least 4 Thai employees (there may be exceptions for certain business, check with your lawyer), in some cases also an annual statement.

 

If you are American, you shall look into the US–Thai Treaty of Amity and Economic Relations.

 

I wish you good luck...

Edited October 18, 2016 by khunPer
typo

[Retiredandhappyhere]

  On 10/17/2016 at 10:34 PM, swissie said:

Nothing is simple for a Farang to "open a business" in Thailand. (Legally, that is). Sooner or later, you will end up in the fangs of a friendly Thai Lawyer, specializing in "Farang Matters". Oh boy!

Of course, much simpler if you put everything in Thai-Wifes name. But in such a case, an even more simple approach is recommended:

- Open window
- Take your money
- Throw money out of window
- Close window

I realize, that this is not the kind of answer you expected. But keep in mind and never forget: Unless your name is Samsung, Mitsubishi, Toyota, Thailand is not a "Foreign-Investor-Friendly Turf".
Good luck & cheers.

 

Great reply Swissie!  I am still laughing and no doubt are several of my friends to whom I passed your excellent advice. I have managed to lose millions of bahts here by the more usual route, without opening any business, or opening a window as you suggested.

[gemguy]

Well think of it this way folks.

Lets say you were to talk to say 1000 foreigners here in Thailand that are doing business with a legitimate registered company or many of them not having nor needing a registered company because they are only buying and exporting product, for example, while the overwhelming majority of them have several years of experience or decades of experience here in Thailand....while they have lots of common complaints and grievances and criticisms......

After hearing them talk about doing their business here and hearing them talk about all the headaches and challenges and costs and extra unexpected surprise expenditures and barriers and the never ending bureaucracy and the corruption and the immigration issues and untrustworthy lawyers and over priced law firms and over priced rental costs and difficulties buying properties and all too many people reneging on deals and contracts and or not living up to their commitments and the never ending delays all the time and over priced services because you are a foreigner so you are commonly charged higher prices and the attitude of all too many of the inept employees  ( that alone is huge common issue and challenge to over come )  and the language barriers and the many misunderstandings and the unreliable supply logistics services and everything is put off until "tomorrow", "tomorrow" or "next week", "next week" and all the various banking related problems and the tax department problems and the difficulties collecting money owed to you and or your company and the work permit issue problems and the labor related issues and problems importing essential products and problems exporting the finished  products and how the competition works against you in underhanded ways and, and, and....... the list goes on and on. 

That being the case, you may be inclined to think twice about setting up a company here in Thailand because the business environment here is not easy and very challenging in all too many aspects while it is not getting easier, rather more difficult and all the more challenging.

But yeah...you can make money here...but you really have to work much harder to earn that money while juggling all the many issues being thrown at you and confronting you on a regular basis ...and just when business is running somewhat smoothly....another unexpected challenge suddenly occurs to test your patience and business acumen.

All too often...it his hard not to get upset

 

Cheers