Challenges of starting a business in Thailand as a foreigner
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Thailand is a rapidly developing country with a strong economy and plenty of opportunities for foreign investors. However, starting a business in Thailand as a foreigner can be challenging.
Aside from the obvious challenges of language barriers and cultural differences, there are also a number of laws and regulations that must be followed, and it can be difficult to navigate the bureaucracy. In addition, the Thai business culture is quite different from what many foreigners are used to. But don’t let that discourage you! With a little bit of planning and perseverance, it is possible to overcome these obstacles and start a successful business in Thailand.
In this article, we’ll explore the challenges of starting a business in Thailand as a foreigner and how to overcome them with the Startup Booster Program.
The challenges of starting a business in Thailand as a foreigner
Here are some common challenges foreigners face when starting a business in Thailand:
1. Getting started
When you start a business in Thailand, you need to go through four procedures: registering your company name, depositing funds into a bank, obtaining the necessary business license, and obtaining a corporate seal. These procedures are important to register your company as a legal entity. On average, completing these four procedures can take almost a month.
2. Ownership problems
Foreigners who want to start a business in Thailand may face some ownership restrictions.
According to the Foreign Business Act of 1999, foreigners are not allowed to own more than 49% of a business in Thailand. This means that if you want to start a business in Thailand as a foreigner, you will need to find a Thai partner who is willing to hold 51% or more of the company.
There are, however, a number of ways for foreign entrepreneurs to obtain 100% ownership of a company in Thailand. The most common and straightforward method is through the Board of Investment (BOI). The BOI is a Thai government agency that promotes investment in the country. One of the ways it does this is by offering benefits for foreign investors, such as 100% ownership of a company.
There are a few requirements that you must meet in order to qualify for these incentives, but they are not overly burdensome. For example, your business has to be in one of the eligible industries. You also need to pass a capital investment of at least 1,000,000 THB and be a registered company in Thailand. You also need a minimum of three registered shareholders.
Another way you can obtain 100% ownership of your company in Thailand is by obtaining a foreign business license (FBL) or through the US Treaty of Amity.
3. Language Barrier
If you don’t speak Thai, another big challenge in starting a business in Thailand is the language barrier. All official documents and business forms need to be written in the Thai language. Therefore, unless you’re fluent in the language, it can be very difficult to navigate the bureaucracy. This means that you need to depend on someone who understands both English and Thai and can help you prepare all the documents.
4. Finding trustworthy shareholders
Finding trustworthy Thai shareholders is another challenging task you need to face. Keep in mind that not everyone who’s interested in your business has your best interest at heart. It may be tempting to go for the first offer that comes along. However, it’s important to make sure that the shareholder is truly committed to your success.
5. Work Permit
As a foreigner, you need to obtain a valid work permit before you run your business in Thailand. Without a work permit, you could be subject to deportation or other legal penalties. Therefore, having a work permit will give you peace of mind knowing that you’re in compliance with the law. Moreover, your work permit will also make it easier for you to open a bank account. It’ll also help you get other necessary licenses and permits for your business.
However, obtaining a work permit is not always easy. The process can be pretty extensive since there are numerous requirements you need to meet.
SMART Visa
The SMART Visa is the answer for foreigners who want to start a business in Thailand. For starters, it provides a fast-track process for getting your business up and running. It also offers a number of other benefits. With this visa, you’re one step closer to making your dream of starting and running a business in Thailand a reality.
But what exactly is the SMART Visa?
The SMART Visa is a new type of visa designed to make it easier for foreigners to work or invest in Thailand. The goal is to attract highly skilled experts, senior management, and entrepreneurs to live in the country and work in the S-Curve target industry. The SMART Visa program offers a number of attractive benefits that aren’t available in the Non-B Visas. For instance, Non-B visa only allows you to stay and work in Thailand for a year at a time. The SMART Visa, on the other hand, allows you to work for up to four years.
Moreover, as a holder of the SMART Visa, you don’t need to obtain a work permit or do 90-day reporting at the immigration office. You can also enjoy multiple-entry privileges and permission to bring family members to live and work in Thailand. These benefits aren’t available for Non-B Visa holders.
There are different types of SMART Visa, including:
- Smart “T” Talent – This is for highly skilled and talented individuals in science and technology, such as researchers, program developers, application developers, and engineers in various fields.
- Smart “I” Investor – This is for foreign investors who are looking to invest in businesses that use technology in production processes or services and are in the targeted industries of Thailand.
- Smart “E” Senior Executive – This is for foreign senior executives who are looking to work in businesses that use technology in the production process or service and are in the targeted industries of Thailand.
- Smart “S” Startup Entrepreneurs – This is for foreigners who want to start or already own technology-based startups and are in Thailand’s targeted industries, such as hospitality, finance, and other related fields.
- Smart “O” Others – This is for spouses and legitimate children of all types of Smart Visa holders.
Each type of SMART visa has different requirements that you have to meet.
Startup Booster
Even with the SMART Visa, starting and running a business in Thailand can still be challenging. Aside from meeting the requirements of the visa, you still need to think about the location of your business, strategy, funding, recruiting employees, and many other things to ensure the success of your business in Thailand.
But thanks to the Startup Booster Program by True Digital Park, starting a business in Thailand just got a whole lot easier.
The Startup Booster Program is a startup incubator program that offers startups and entrepreneurs the information and skills necessary to advance their business potential. By joining this program, you have the opportunity to obtain a SMART Visa faster and easier.
An easier SMART Visa application is not all you’ll get. The program also includes Business Matching Events, where you can find potential startup business partnerships and new connections. You can also enjoy consultation sessions with experts, access on-demand materials to help your business succeed, assistance with recruitment, monthly networking events, and startup business funding opportunities. The best thing is that the program also allows you to use the co-working space at True Digital Park, True Space and partners in over 10 locations. This means that you don’t have to worry about finding a good location or constructing an office space to run your business.
So if you’re looking to start a business in Thailand, the Startup Booster program is the perfect solution for you. Click HERE to learn more about how the program can help you get started on your entrepreneurial journey.
