Launching a Successful Small Business in Thailand: A Guide for Foreign Entrepreneurs

If you are considering doing business in a different part of the world, Thailand may be worth considering. Located in Southeast Asia, Thailand is a year-round tourism destination with a rapidly growing economy and a forward-thinking government. It checks all the boxes required for a business setup.

More importantly, Thailand is currently rife with prospects, particularly in modern areas such as gaming, which blend effortlessly with the country’s young and dynamic populace as well as its pastime traditions. Such trends explain the surge in new Thai online casinos, as detailed on this page. You can easily search and choose to play on both foreign and local websites, all of which offer high-value prizes and good opportunities to win.

To properly grasp Thai’s business environment for SMEs as a foreign entrepreneur, you need the following fundamentals.

Obtaining A Visa and Work Permit

Thailand is incredibly hospitable to entrepreneurs. According to recent research, the country ranks 21st among 190 economies in terms of ease of doing business. This means that Westerners don’t require much to get started in the Thai business landscape.

For starters, you must have a valid visa and work permit. Foreigners must first get a Business Visa or a Non-Immigrant ‘B’. Foreigners can easily obtain a three-month visa from the Royal Thai Embassy for as little as 2,000 Baht (US $54). A multiple-entry visa is a good option for one year. It is priced at 5000 Baht ($136).

However, the SMART Visa Program is recommended for entrepreneurs and investors. It allows businesspeople to stay for up to four years without requiring a work permit.

Choosing The Right Venture

Like other countries, Thailand permits people from all backgrounds to create various enterprises. The choice of a business venture relies on the investor’s preferences and legal landscape. Thailand offers numerous prospects in various fields. However, you best consider investing in a niche that features contemporary trends.

For example, establishing a firm based on consumers’ growing preference for online convenience offers high profits and the potential for exponential growth in the future. Such technology-related startups are already thriving in Thailand.

Traditional sectors, on the other hand, remain viable for those who favor more predictable investment strategies. Because of the rising demand for shelter, real estate is extremely profitable in Thailand. Healthcare enterprises are also doing well due to greater awareness across the country.

Finally, Thailand’s tourism sector is a gold mine. Before the COVID-19 plague, tens of millions of tourists visited the country yearly. Consider starting a business that provides tourism-related goods and services, such as a specialized restaurant, lodging facilities, a jewelry store, entertainment services such as an online casino, or tour guide services.

Registering A Business

After ensuring your stay, the next critical step is determining the legality of operations. Investors must go through the Department of Business Development, which operates under the Ministry of Commerce.

The agency analyzes the availability of business names and registers them on behalf of investors. You must first determine the type of organization you want to run based on the industry you chose and the product or service you intend to offer. You also need to understand what kind of entities you can register.

A foreigner can set up a limited corporation, a partnership, or a representative office/branch. Understanding the norms that govern business or online gambling as well in Thailand is critical. Specifically, the Foreign Business Act of 1999 limits foreign ownership to 49%. To this end, a foreigner requires at least one Thai partner to possess the remaining 51% of the company’s shares.

Private limited firms account for the majority of popular Thai businesses. Foreigners who want to create a company in Thailand should contact the Thailand Board of Investment to take advantage of many perks, including tax breaks.

Meeting Business Tax and Fee Obligations

After successfully registering a business, a foreign business owner must register for tax compliance within 60 days. The Thai government requires that the new firm obtain a tax ID from the Thailand Revenue Board. Fortunately, this service is offered online.

The business must also pay other fees and taxes as specified in the fees and stamp duty tariff. However, some services are free of charge. The fees imposed are mainly determined by the type of business; therefore, some entities may require additional licenses or permits.

Foreigners should contact Thai-trained lawyers for the most up-to-date information on fees and taxes. Compliance is critical for foreigners because failure carries severe penalties.

Final Thoughts

Thailand is one of the best countries for startups. The Southeast Asian country is strategically located, has stable governance, and has an overall optimistic economic development rate. Foreigners considering Thailand as their next investment location have a great opportunity to succeed under the current conditions. Prior to investing in any sector within the country, it is imperative to conduct thorough research on the respective market, comprehend the regulatory prerequisites, and evaluate the potential profitability of each endeavor, whether it involves establishing a hotel, a specialized restaurant, a new online casino, or providing tour guide services.